Chris Puplava's picture

Today’s WrapUp will be light on commentary as I will let the charts do most of the talking in terms of gauging where things stand currently. Let’s dive right in…

Frank Barbera CMT's picture

For the last two weeks most Americans have been mesmerized by the financial train wreck unfolding before our very eyes. We have witnessed major banks like Wachovia, Washington Mutual and other (FNM, FRE, AIG, Lehman, Merrill Lynch) financial institutions collapsing on a nearly day-to-day basis.

Rob Kirby's picture

To say that events that unfolded in the world’s financial markets last week were ‘unprecedented’ is perhaps a little too cliché. So let us revisit some of the key events which reportedly unfolded in the wake of Lehman’s demise...

Chris Puplava's picture

Mr. Rogoff is probably correct that we aren’t even half way through the credit crisis, and I would also add that we are not even half way through the market correction, nor what will undoubtedly be declared a recession that began in either December of last year or January of this year.

Frank Barbera CMT's picture

For the last few days, the US Financial system and perhaps, the global financial system, has moved to the brink. Events surrounding American International Group (AIG) seem to have brought this crisis to a head.

Chris Puplava's picture

Oh, what a tangled mess we have! The bailout of Fannie Mae and Freddie Mac is the latest attempt to bring stability to the housing and financial markets. But the question remains, is it enough?

Rob Kirby's picture

Fannie and Freddie were finally nationalized on Sunday, September 7, 2008 – a date that may very well live in infamy. Shareholders of the mortgage behemoth mortgage giants have been effectively wiped out.

Chris Puplava's picture

Despite all of the negative fundamentals facing the U.S. economy, the unthinkable has happened: the dollar has staged a significant rally. Since bottoming in July the USD has risen 9.6% to over 78 after grinding out a bottom since May.

Frank Barbera CMT's picture

Since mid-July, stocks have experienced a lot of short term volatility with the DJIA posting 13 sessions of the last 30 days with daily closes in excess of 150 points up or down. Today, was more evidence of this wild volatility with the market soaring higher at the opening and then giving back all of the gains.

Chris Puplava's picture

Last week I took a look at why consumers were so depressed. In short, my conclusion was that consumers were finally coming to terms with their balance sheets and this wakeup call: that you can’t borrow your way indefinitely to maintain ones standard of living.

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