Abandon Ship ! Thats the general thought process going around today as bearish markets in Europe and word that financial giant BNP Paribas is halting withdrawals from three of its investment funds due to an inability to fairly value their subprime assets, or should I saw liabilities. The ECB is coming to the rescue lending $130 billion to banks as liquidity injections in response to the subprime crisis.
Here in the US, retail sales for July were very weak putting added pressure on the markets. Obviously the lack of ability to withdraw money from homes and increasing gas prices is effecting US consumers to a greater extent than most people think.
There is talk that a bottom in housing is near. Unfortunately I do not believe any bottom is near. Things are going to get far worse. NO BOTTOM TILL 2009 and thats my final word !
US markets are expected to take a huge dump this morning. I will look to add into long positions on this decline. I feel subprime is already priced in and people are overly bearish in general. Plus we need one last shakeout before we continue upwards.
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