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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: MulhollandDrive who wrote (149706)9/23/2008 10:16:23 PM
From: XoFruitCakeRead Replies (1) of 306849
 
"imagine what friday would have been like had the shorting ban and bailout and commercial bank announcement had not been made"

We would have a cascade events that lead to a big run in withdrawing money from smaller/weaker banks and brokerage firm. A lot of hedge fund will shut down because of lack of fund with every prime broker yanking everyone credit line.. Market spiral down. We start seeing lines around WM first, then rumor start with other banks, riot police come in to put thing back in order. And some companies will start shutting down since they don't have enough money to pay their workers... There was a big run of money market fund on Thursday in progress and commercial market was pretty much frozen as well.. And Fed has to inject hundred of billion dollars into the system to bring down Fed rate since all the banks are hoarding money to be ready to pay the expected withdraw..
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