Crash is coming, warns Victoria's top investor

Colorado-Valley · Intermediate Crude Joined: Aug 16, 2004 Posts: 731

The legendary metals trader, Jim Sinclair, says "This is it" and advises protecting yourself as soon as possible from the unwinding of the derivitives market, which he feels is imminent.

He's very uncomfortable with what's happening in the markets right now.

Cornelian

I pulled all my stocks from the Australian share market about 2 weeks ago. It was all getting a bit too much. Will be interesting to see if this article has any effect on Aussie stocks this week.

skiwi

Early hours let alone days yet but the Aussie market is down .5% in the first 30 mins.
Even that slimy cane toad howard is forced to issue a few words of truth.

Inflation pressure unavoidable, says PM

Cornelian

Poor Mr Howard - he doesn't even look like he can win his own seat!

Just had a look at the All Ords - stock down 66 points.

skiwi

Just the sort of news I like to hear after a day in the veggie patch Laughing

Stock plunge wipes $53b off market

dust_farmer

Good example of the scale of the problems coming at us. $53b is a crap pile of money but its only 3.5% of value. Just think what could happen if we have a 1929 style crash.

alokin · Intermediate Crude Joined: Aug 24, 2007 Posts: 792

This post became quite actual at the moment.
How will the US crash affect Australia?
In Germany there are big banks in trouble.

dust_farmer

That alokin is the question, for the simple reason there has never been a set of circumstances like the present. The last real major correction in some ways was 1987. Now think of all the things that have changed since then, information tech , globlization, etc , etc... Now think of all the linkages those changes have made.
So long as the losses are only on paper so to speak there will be no major problems, but if the losses jump from paper to the real world all hell could break loose.
Here in australia there is a govt funded pension scheme, but policy for quite some time is to move people to self funded retirement via superannuation. A lot of that money has been invested in the sharemarket, and for the last few years everything has been good and even bad superannuation managers can look reasonable. But in the last few days the stockmarket has moved down to the same levels as the start of last year. So the next set of superannuation fund reports may put the wind up people, and get them worried.
Here in australia there are four major banks and I think they will be o.k. unless there have been creative accountancy , It's the smaller ones that worry me.