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Showing posts from September, 2008

$US700 billion rescue plan fails to pass

Global markets went into convulsions after US lawmakers rejected a $US700 billion ($A840 billion) rescue of the financial system, raising the prospect of deeper financial turmoil.More than $53 billion has been wiped from the local sharemarket after US markets suffered a record drop overnight as the $840 billion Wall Street bailout collapsed. "The important question is whether the system can save itself before the (Dow) moves toward 9,000," said Douglas McIntyre at 24/7 Wall Street. "That would wipe out over five years in gains."Crude oil plunged more than $US10 a barrel as investors scrambled in the face of panicked markets."The US is looking at a severe recession if Congress fails to pass some sort of package."The panic extended to Brazil, where the Sao Paulo stock market plunged nearly 10 per cent and suspended operations. Canada's S&P/TSX slid 7.1 per cent and Mexico's Bolsa tumbled 6.2 per cent.New York's main contract, light sweet cru…

Investment property - Perth city

Here is a plug for a friend - Investment property for sale in perth cityListing on realestate.com.au

Federal Goverment Home loans give banks a run for their money

THE Federal Government will enter the home loan business by investing $4 billion to revive the non-bank mortgage market and boost competition.The aim of the unprecedented action is to give borrowers more options than the five major banks now dominating the market.This could start a price war, which the Government hopes will keep interest rates low and stimulate the flat housing market.And the move could stop banks refusing to pass on an official rate cut expected to be announced by the Reserve Bank in two weeks.Mr Swan revealed the Australian Office of Financial Management (AOFM) would buy mortgage-backed securities from smaller lenders, non-banks and building societies.There would be two tranches of $2 billion each, possibly more.Part of the money would come from the 2007-08 Budget surplus, which came in $2.9 billion higher than expected at $19.7 billion.

Update ON OZ minerals

Oz Minerals says it can can finance its future development projects without having to access financial markets and it has apologised for the poor performance on the company's shares since the merged company started trading on July 1. Oz Minerals Limited - ASX Code: OZL"We have a strong balance sheet, no net borrowings and the ability to generate healthy cash flows," Oz Minerals chairman, Barry Cusack and CEO Andrew Michelmore said in the letter to shareholders.Business DescriptionOxiana Limited (OXR) is an Australian based copper and gold miner and exploration company. The company's operations are located in Laos, Australia, Cyprus and the Philippines. OXR is focused on the operation and development of the Sepon copper and gold project in South East Laos, the Golden Grove copper/zinc mine in Western Australia and development of the Prominent Hill copper/gold deposit in South Australia."At a time when the world's financial system is in so much turmoil, this i…

Warren Buffet's to invest $US5 billion in investment bank Goldman Sachs

Australian shares closed up today after investors were buoyed by billionaire investor Warren Buffet's decision to invest $US5 billion in investment bank Goldman Sachs.The move boosted confidence in local financial stocks, with National Australia Bank closing 7.3 per cent higher.That helped the ASX 200 rise 1.2 per cent to 4,982.The All Ordinaries index added 51 points to 5,008.BHP shares closed flat on the share market at $37.87. Fortescue stocks were down 0.8 per cent to $6.46. About 5.30pm AEST, gold was worth $US888.20 an ounce. Oil had dropped to $US107.85 a barrel. The Australian dollar was worth 83.74 US cents, 45.13 UK pence, 88.96 Japanese yen and 57.06 euro cents.The Reserve Bank, meanwhile, has joined the latest effort to address the global financial crisis.It has agreed with the US Federal Reserve to join the central banks of Sweden, Norway and Denmark in pouring $US30 billion into the global system.Of that the RBA is contributing $US10 billion to create a swap facility…

Ban on Naked short Selling - Is it the solution ?

A brief moratorium on shorting can stabilise stock prices and restore some confidence, its definetly a good thing.The regulators have banned all shorting _ naked and covered that is, and in all stocks and sectors. [PDF]The Economics of Naked Short SellingFile Format: PDF/Adobe Acrobat - View as HTML
Naked short selling has been the focus of an increasing. number of lawsuits. ... Despite the cries of alarm, we believe that naked short selling ...It is a killer for the ASX, as well as liquidity in general. In a normal market, short selling accounts for a third of volumes and right now the share would be closer to 50%. Despite the conspiracy theories, shorting is not just about hedge funds ravaging stock prices for their own greedy ends _ though that is a good part of it.Banning short selling means less liquidity therefore more volatility in share prices. SO WHAT IS NAKEWD SHORT SELLING ?FROM:/ http://en.wikipedia.org/wiki/Naked_short_sellingNaked short selling, or naked shorting, is the …

Heavy falls on Wall Street

To trade and invest profitably you need a plan ?a plan to maximise profits and minimise risk. Without a plan even the most experienced traders can be caught unawares and risk their trading capital unnecessarily. In today's uncertain markets, a sound strategy is more important than ever. There are abundant opportunities for profit, but taking advantage will require a clear and disciplined approach. With this complimentary publication, you will learn how professional traders plan profitable moves in all market conditions. The most famous investor of all time, Warren Buffet, once said: "The stock market is a mechanism for transferring money
from the impatient to the patient"
What the grandfather of investing is telling you is to keep a cool head and be confident in your investment convictions. Metals all up overnight – Zinc up 3.48%, Nickel up 3.17% and Copper up 2.70%. Aluminium up 0.48%.Oil price up 17.8% or $18.56 to $122.61 – it spiked more than $25 at one stage – …

Lock in you profits

so what do you  in a situation like this ?The market is down  and all analysts and economists are saying  there is no immediate recovery  and there is only a gloomy forecast. But then a sudden  billion dollar rescue  plan is announced to  save the worlds biggest economy and stock prices  shoot up... yeh Shoot UP.. so what do you do.Lock in your profits ??. ? sell while the  going is good.. is the  Big  rescue plan  gonna bring everything  to normal... well i dunno about you , but i put my WBC shares that i got at 20.60 a month ago  to sell today for a nice handsome windfall... so what are you waiting for lock in those profits while you can.OTHER NEWSASX Goes For Sweeping Short-Sale Ban Forbes
UPDATE 1-Aussie regulator tweaks short sale ban after chaos Reuters
Short selling ban the right thing NEWS.com.au
National Business Review - BloombergAustralia stocks rise over 3 pct; Babcock leaps Hemscott
Australia Stocks Surge as Regulators Act to Curb Short Selling Blo…

AIG Rescue Plan - They are dropping like dead flies in the US

U.S. authorities engineered an $85 billion (47.5 billion pounds) rescue of insurance giant American International Group Inc, staving off bankruptcy and bringing a measure of calm to shell-shocked global markets.The bailout, made amid a cataclysmic week for the financial sector, marks a reversal of Washington's vow not to step in and calls for the U.S. Federal Reserve to lend up to $85 billion to AIG for two years in exchange for a 79.9 percent equity stake.It came just two days after U.S. authorities refused to rescue investment bank Lehman Brothers Holdings Inc, forcing it into bankruptcy court despite pleas from Wall Street's chiefs.The desperate scrambling by the US authorities to provide American International Group (AIG) with a taxpayer-funded lifeline of extraordinary size is a clear and unsettling signal that they believed its failure would threaten the already parlous stability of the global financial system.
The same authorities who were prepared to let Lehman go, …

Platinum is up 400% Copper is up 470% Lead is up 500% Uranium is up 530% Crude oil us up 900% 'Energy Metal' is up 1300%!

Tiny Aussie Miner Discovers $17.8bn 'Energy-Metal' DepositWith a melting point of 2,623ÂșC, this greyish metal is crucial to 95%
of the world's oil refineries and all new nuclear reactors.
But chances are you've never heard of it...One tiny Aussie miner is poised to 'bust open' a 30-year 'Energy Metal'
resource in the Pilbara... and could potentially deliver you
400% gains by the last quarter of 2009
"Having been all but ignored for many years, this ('Energy Metal') is now being mined at a ferocious pace as oil, gas and nuclear groups discover how many ways they can use it..." -- MoneyWeekHave you heard about the obscure alloy that's keeping the world's oil refineries and nuclear power stations running?Read on, because it's a story that could put 400% into your pocket in the next 12 months.In fact the stock I want to tell you about could significantly outperform my last mining share tip, Mineral Resources, whi…

Best Australian stock forums online ( finance forums)

Many traders and investors use forums to share ideas, learn from the more experienced, or simply to stave off boredom during long hours at the computer. Here we list the known universe of forums, complete with costs, member numbers, extra benefits and popular forum topics. Please post a message on Your 2 Cents if your favourite forum isn't listed here, or if you feel that there's more to add about the day-to-day goings on in your online community.Forum
Cost
Stock comps
Forum areas
Comments
AussieStockForums.comFreeASX by share code, General, Beginners, Derivatives, Commodities, International, Strategies/SystemsEasy to use, independent forum. Aussie Stock Forums has a group of very active and knowledgeable traders. Private messaging available. Australian forum.
Chimes in ExileFreeASX stocks, fundamental analysis, technical analysis, commodities, economics, investment tools The forum has a small group of regular contributors that form a genuine community of investor…

Lehman Brothers (LEH) in free Fall

US investment giant Lehman Brothers announced its bankruptcy early Monday as the Federal Reserve and major global banks moved to shore up financial market shaken by the housing and mortgage crisis.In a statement released after midnight, Lehman Brothers said it intended to file for bankruptcy "in order to protect its assets and maximize value."The financial firm said the filing was authorized by its board of directors and will occur at the United States Bankruptcy Court for the Southern District of New York late in the day."Customers of Lehman Brothers, including customers of its wholly-owned subsidiary, Neuberger Berman Holdings LLC, may continue to trade or take other actions with respect to their accounts," the statement said.The beleaguered Wall Street firm lost an estimated 3.9 billion dollars (2.7 billion euros) in its fiscal third quarter amid fresh writedowns on mortgage assets.The bankruptcy announcement came after a last-ditch effort to find a buyer for th…

Asia stock markets tumble down

Stock markets plunged across Asia on Friday, continuing a steep downturn that began in Europe on Thursday and deepened on Wall Street as investors around the world grew increasingly worried about the prospects for a global economic slowdown. -- Asian stocks fell for a fifth day, set for the biggest weekly decline in a year, as concern over slowing global growth triggered a plunge in finance, energy and raw-materials shares. The Nikkei 225 index in Tokyo fell 2.8 percent by early Friday afternoon, the Shanghai A-share market dropped 2.6 percent, the Australian market declined 2.1 percent and the South Korean market dipped 1.2 percent. The CAC 40 in Paris and the DAX in Frankfurt added 0.5 percent to Thursday’s losses in early trading. In London, the FTSE 100 was down 0.6 percent. Asian stock markets have now fallen every day this week. Particularly troubling for many investors has been a sharp increase in the volatility of currencies, which has made the returns on cross-border investme…