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don't agree or disagree, I will let the market tell me. but the major
difference between now and then is interest rates. I believe in both
instances rates were rising not falling. The same in 73 and 74. That was
inflation. Here we may have deflation, I don't see it in anything but
computers, but then I don't change the measuring devices either. Ira.
Joe Frabosilio wrote:
> Hello everyone,
>
> I have a question, I'm noticeing what I think is a repeat in history for
> the market. Last week the Fed unexpectly dropped rates, on Friday
> rumors were spreading that Bankers Trust and BankAmerica have finanical
> woes. The comparison is 1987 when the Saving and Loan system was in
> trouble and the Fed came in and saved the S&L. A few weeks later the
> market crashed. In 1930 the Bank of the United States Fails,1931 the
> Bank Panic,1933 FDR closes banks.
>
> Does anyone agree or disagree that the market might be in for a major
> crash?
>
> Source: IBD
> "Also, with T-Bill yields trading at there 4 1/2 year lows, reason
> traders rushed to safety of short term government debt amid rumors of
> more bleeding at hedge funds and , perhaps, some damaged banks. Those
> FEARS, and fresh data that show a weaker economy, have many thinking
> that the Fed will cut interest rates again-soon."
>
> Below is copied from Investors business daily newspaper, 10/19/98, page
> A2
>
> "Bankers Trust denies Street rumors that its having finanical
> difficulties, A company spokesman pronounced BT in "sound financial
> condition" after rumors dragged down its stock 5 1/2 to 51 3/8. Rumors
> had the bank borrowing funds at Federal Reserve Bank of New York's
> discount window, which extends emergency credits. The rumor was also
> discounted by Goldman Sachs banking analyst Robert Albertson. BT has
> been hurt by global financial turmoil."
>
> "BankAmerica said the loan to troubled hedge fund DE Shaw &Co. and its
> investments in Russian government bonds helped knock almost $1billion
> off its bottom line. And a new report says BankAmerica knew as early as
> August of the trading woes at Shaw."
>
> Trade Well,
> Joe Frabosilio
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