Here comes the correction.



ocoonassa

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[ame=http://www.youtube.com/watch?v=VdkJp1k7sZg]YouTube - Bob Marley Ride Natty Dread[/ame]

And it's the fire (fire), it's the fire (fire)
That's burning down everything:
Feel that fire (fire), the fire (fire);
Only the birds have their wings, yeah!

No time to be deceived.
Oh, brothers, you should know and not believe:
Jah say this judgement - it could never be with water,
No water could put out this fire (fire):
This fire (fire), this fire (fire),
This fire (fire), a yaga y'all! Ride, Natty, ride!
Go deh, Dready, go deh,

'Cause now the fire is out of control,
Panic in the city, wicked weeping for their gold!
Everywhere this fiyah is burning,
Destroying and melting their gold,
Destroying and wasting their souls.

:)
 

NYCKY

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Not a bad idea. The correction isn't over yet. Fasten your seatbelts!
 

Ó Donnchadha

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The market is still skittish. The Mortgage mess is still unresolved, and corporate America is sitting on their money.

On top of this, we have a President and Lawmakers who are spending money like drunken sailors. Bad medicine.
 
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Its widely expected in some circles to have a market crash today.

The perfect storm is here, the UK with their Budgets Cuts, some major business announcements in the US.

Could be bumpy today.
 
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firefly123

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Feck it. I just got through the last cache of tinned goods from the last scare.
Off to the supermarket I go again. The missus won't be happy
 

Chrisco

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Its widely expected in some cirlces to have a market crash today.

The perfect storm is here, the UK with their Budgets Cuts, some major business announcements in the US.

Could be bumpy today.
The sort you and Rhondda are active in?
 

CorkHurler

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US index futures are up this morning, commodities are rallying and risk currencies are seeing infows, strange sort of "correction".
 

DCon

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The market is still skittish. The Mortgage mess is still unresolved, and corporate America is sitting on their money.

On top of this, we have a President and Lawmakers who are spending money like drunken sailors. Bad medicine.
And the common people, damn them, have the audacity to save their cash.

Federal Reserve Bank of Chicago President Charles Evans said we are in what Keynesians call a "liquidity trap":

A liquidity trap may be defined as a situation in which conventional monetary policies have become impotent, because nominal interest rates are at or near zero - so that injecting monetary base into the economy has no effect, because base and bonds are viewed by the private sector as perfect substitutes.
In order to make monetary policy "effective" during a recession, they say you have to stimulate the economy by creating price inflation. They create price inflation by printing money (quantitative easing or QE). This will free up all those dollars that savers are "hoarding." What this will do, according to Krugman and Keynes, is cause people to spend because they will see that inflation is depreciating their dollars and there is no use continuing to maintain high savings. This new spending will break the "trap" and people will spend, businesses will borrow, and banks will lend. But it won't work unless people know that the Fed really means it when it comes to creating inflation. If they think the Fed will "chicken out," then folks will just hold on to savings during economic uncertainty and they won't spend. So, the Fed really needs to push the money pedal hard.
Fed: We Are In A Liquidity Trap Which Can Only Be Cured By Inflation | zero hedge
 

Hewson

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I do not really know what to say!
Wall St drops as mortgage worries hit banks | Reuters
For the first time in my life I am thinking of getting out!
Jesus on a tricycle this is messed up.
October will speak volumes and Joe Six pack will hear about it in MARCH 2011.
Well, maybe, maybe not.

Wall Street is a cross between a seedy back-street gambling casino and a noisy creche. I've seen so many 'terminal' shocks to the system over the last few years that I just grin and :roll: The instinctive reaction among traders to the slightest of events is the knee-jerk reaction. Then it wears off, gets forgotten about and the whole show moves on.

Yesterday the pandemonium was largely set off by the rise in Chinese interest rates. That was yesterday's excuse. Today it'll be something else. Tomorrow something else again.

And never, but never, underestimate the levels of manipulation going on in the background.
 

Cassandra Syndrome

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The Dow could go to 50,000. As long as the Feds keep printing money and buying equities, the correction will be permanently kicked down the road.

However a pint of milk will cost $50,000 as well on main street.

The Dow should be under 4,000, but artificial manipulation by the Federal Reserve from March 2009 has ensured that the wealthy elite are kept fat while the peasants starve.
 

hmmm

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A dramatic drop indeed. This graph shows how terrifying the drop was yesterday.

http://finance.yahoo.com/echarts?s=^DJI+Interactive#chart1:symbol=^dji;range=3m;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined
 
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[ame=http://www.youtube.com/watch?v=YpFB1iVPAt0]YouTube - Timewave Zero 2010[/ame]
 

NYCKY

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The Dow could go to 50,000. As long as the Feds keep printing money and buying equities, the correction will be permanently kicked down the road.

However a pint of milk will cost $50,000 as well on main street.

The Dow should be under 4,000, but artificial manipulation by the Federal Reserve from March 2009 has ensured that the wealthy elite are kept fat while the peasants starve.
Thanks Cassandra, not saying I agree, but if the Dow really was 4,000 how much worse off do you think the peasants would be?
 

dubboy

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Oct 19, 2010
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This is a mess but I think if the big banks share prices continue to fall, the US authorities will wave their wand and make this go away. They hardly spent the last few years bailing them out to let them fall over missing or forged documents. These banks can do what they want, because the government can't let them fail...
 

Cassandra Syndrome

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Thanks Cassandra, not saying I agree, but if the Dow really was 4,000 how much worse off do you think the peasants would be?
It is the real value. Most people would be better off as resources are allocated by the market and not central banking. People used to accumulate their wealth for pensions through savings. Now they are forced to gamble on the stock exchange as rates are too low. They would pursue what they are good at, make a living from that and save. They shouldn't have to gamble.

Historically, when you look at the chart, the Dow should be at 4,000. Before the Feds intervened in March 2009, it was correctong to that level when it fell to 6,500. The feds are draining real wealth out of the economy to boost the NYSE. Its a bit like Mussolini's State-Corporate fused Fascism model.


 


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