Danger Will Robinson

Danger Danger!

Its time to bring out the old robot from the old Lost in Space TV series who would shout with all his bells and whistles going off that when was approaching danger - Danger Will Robinson Danger Danger. This is the highest alarm Investors 411 has of a possible impending meltdown

Stocks and more specifically our over leveraged, under regulated, “free market” shadow banking system is in big trouble.

The problem came out of Europe as the ECB (central bank) made a loan of  $500 million to one of its members. After markets closed our NY Fed made a loan of $200 million to a Swiss bank. Obviously some major banks in Europe are having insovlency problems and investors panic first and ask questions later.

Its a globalized banking world and everything is interconnected and hidden in the shadows. Remember after Lehmann went belly up so did Iceland’s entire financial system. Many US banks are deep into European debt.

The problem is the books are so shady, the regulators so few and the problems so large that PANIC is starting to unfold.  This is a libertarian and often alarmist web site, but I think its facts are correct. LINK Other stories CNBC LINK & CNBC LINK & WSJ LINK

Yesterday Investors warned that the German markets were down -3.47% at 8:45 EST. Today they are down another -3,68% at 7:00 AM this morning. German marks down  -25% this month. The US market futures down

Cramer and Hobbs from CNBC argue if this is like Lehmann’s

The major support level for the benchmark S&P 500 is 1101 It’s at 1125 in Futures trading at 7:20 EST. Down from 1141 closing. If 1100 falls you could see HFT’s accelerate the panic.

The one ray of sunshine is if the 1100 support level this holds, its bullish. But whose going to want to hold bank stocks over the weekend if the European banks are down another 5 to 10 % today?

Protect YOUR money – Downside risk is clearly much larger than any upside gain.


PS Just for fun, and we need a distraction today  - Almost 15 million viewer have watched this video about The Crazy Nastyass Honey Badgers by Randell

PPS – sending this out early as a head up.

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