HIGH ALERT!

[cottonpicken]

The global ecomic system is on high alert.

The central banks of the world had to inject 300 billion on thursday,friday.

Why?

The global otc dervatives market may be melting down.

The economic chat rooms are "buzzing".

At least we live in interesting times.

[Fransisco]

I have been reading two seemingly contradictory things about this. One the 300 billion is a record, and two this is just a blip.

Monday morning should be interesting.

[Incognito]

Read this week's Economist for the rest of the story...

[cottonpicken]

Main stream media doesnt have a clue.

[Incognito]

You consider the Economist - Main Stream Media?

Have you ever read it?

[liberty]

You might want to check out a website called fiendbear.com

Another one that is useful is Bill Bonner's dailyreckoning.com

Regular reading of these two websites in the late 1990's helped me avoid losing a great deal of money in the stock market.

These sites were well ahead of the curve when warning about the bursting of the tech bubble of the late 1990's. What we're seeing today is the bursting of the real estate bubble, which, coincidentally, arose from the fed's attempts to ameliorate the effects of the tech bust by pushing easy money into the economy.

I'm not one of those who believe the world is going to end soon, or that another Great Depression is on the horizon. However, you might be well advised to resist the pleadings of mutual fund salespeople who are going to tell you that everything is fine and you should just buy more of what they're selling. Generally, these guys are way behind the curve.

[Fransisco]

Great links guys, losts of good info.

I have two concerns about this.

1. Will money get pulled out of the commodity markets by investors to improve their liquidity? So far that doesn't seem to be happening.

2. What will happen with interest rates? Particularly floating interest rates, a lot of mortgages use these now.