Financial Betting Articles

Pundits are predicting a bounce for the US stock exchanges tomorrow because of the anticipated "bail-out" of Freddie Mac and Fannie Mae. US Treasury Secretary is expected to announce a $15-$20 billion rescue package that will take the companies into government "conservatorship". (Why can't we re "conservatorship" the railways? Please...)

Wall Street rallied on the rumours on Friday and the FTSE is expected to be of equal good cheer this week.

Really?

Is it good news that the economy is so bad that the companies underwriting $5 trillion of US mortgages is on the brink of oblivion? I mean, if the Credit Crunch were a Bond movie it wouldn't be like he'd just killed the guy with the cat would it? I mean, we're talking henchman here - tops. And the guy with the nuclear-time-travelling-destruction-of-the-world-device is still out there. In fact, I’m disturbed his henchmen were this bad. I didn't even know he had a hench, let alone men.

(At what point do we get henchmen? Can henchmen mention it on their CV's that they've been henching on and off for most of their careers? Are there perks? Is there a health plan? I'm not committing to henching until these questions are answered.)

Personally, I'm sticking with the facts on the ground.

Not great, though.

I don't believe the Halifax. I don't believe that house prices have dropped 12.7% in the last 12 months. If - as I am led to believe that - something is worth what a person will pay for it then house prices are considerably lower than that. Because people are not paying up. The auction houses are having trouble shifting properties 20, 25, 30% off last year's price. That's the reality on the ground. And we haven't hit the worst of it.

It'll come and it'll go but good luck to those pundits who think Freddie and Fannie needing bailing out is somehow a turning point. The economic sewage pipe is a long one and the big much-needed flush that occurred August of 2007 has yet to travel all the way to the sea. Still, at least the markets aren't boring.

Not a good start to the month for the FTSE as it fell by 395.90 points so far

Wall Street also fell by 324.67 points

The DAX fell by 273.41 points in the past week

Our bodies are recreating themselves constantly - we make a skeleton every 3 months, new skin every month

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