Doomsday clock for global market crash strikes one minute to midnight

cmalak said:
These markets are classically going to whipsaw many retail investors. Anybody who sold yesterday is going to get so pissed today with Futures pointing to an up 3%-4% across the Dow, S&P, Nasdaq and Russell 2000. Crazy. China lowered 1-yr benchmark loan rates by 25bps to 4.6%. Fifth time in 9 months. We'll see if up open holds today by market close.
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I completely agree Cyril. Patience. China is creating quite the upheaval in the markets which ultimately results in their own economic suicide.

Who's shit hot on BRIC countries now? I shook my head then and I'm laughing now.

As Warren Buffet said, "why must we make the simplest things so hard?"
 
The markets will be unstable for months if not years going forward.

Interesting times ahead....Confucius gets his wish.
 
The market sure has been interesting the past week or two. Good job data sends the market lower. Hmmm...ok.
 
Mike said:
The market sure has been interesting the past week or two. Good job data sends the market lower. Hmmm...ok.
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Mike...that's because the jobs report while missing on the headline number (172K new jobs vs. 220K consensus expectation), saw the unemployment rate fall to 5.1% and wages rise by 0.3%, both of which were better than expected and will give the Fed the ammunition to hike rates in September. That's what the market has really been creaking out about the last month, even though the catalyst has been worries about China and hence global growth. The fear is about the Fed hiking too early at time when global growth is apparently slowing, potentially detailing the US's recovery and pushing us back towards recession. That plus full valuations equals a recipe for multiples contracting, which we have taken two P/E multiple turns (18x to 16x) off of stock valuations so far.
 
The jobs data for the last 5 years has been such gross fabrication, the BLS should just be renamed to BS.
 
... as if a qtr point rate increase changes anything economically. It is an over wrought topic.
 
Mike said:
I'll bite my tongue and just say this: the opportunity will be in the next month or two when I predict the market will correct itself - typically after the Feds SHOULD announce no raise in interest rates in September.

What's happening today and the later half of last week is a correction in confidence.
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Is it ok to say "I told you so"? [emoji41]


Sent from my iPhone using Tapatalk
 
This an impossible issue to predict. You want to frighten yourself. Try James Rickards (Currency Wars and Death of Money) or Ron Paul. There are other fear mongers out there too. I don't know what the truth is.

My sense as a casual bystander is that there are huge imbalances in the US and world economic systems. The US national debt is out of control. Foreign exchange is out of control. A large part of our population is not employed or is underemployed. I just don't know where this will take us. I'm a little surprised that the "inside the beltway and Wall Street geniuses" have been able to juggle so many nitro balls at one time.

Hey ... if you want to get really spooky and frightened, do a web search of articles that speak to the alleged correlation of national or world disasters with the Jewish schmitta cycle.

In the meantime, embrace Alfred E. Neuman's credo, "What, me worry??"
 
Don't worry Mike in the years 2020-2037 Jeane Dixon claimed that Armageddon would take place in 2020 and Jesus will return to defeat the unholy Trinity of the Antichrist, Satan and the False prophet between 2020 and 2037. Dixon had also previously predicted the world would end on February 4, 1962. Sooooo

but according to F. Kenton Beshore, President of the World Bible Society, which puts the second coming right around 2018 and of course more war, total destruction etc..etc...

And there is so many others but's, and what ifs
 
FlexibleAudio said:
All I see is more air in the balloon.
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Impossible to argue ... the rubber band just keeps getting pulled tighter and tighter through centrally planned manipulation.

Survival of the system hinges completely on the central planners remaining in control. If something were to cause a downward spiral to accelerate past their event horizon, I shutter thinking where it could land.
 
Vapor1 said:
Impossible to argue ... the rubber band just keeps getting pulled tighter and tighter through centrally planned manipulation.

Survival of the system hinges completely on the central planners remaining in control. If something were to cause a downward spiral to accelerate past their event horizon, I shutter thinking where it could land.
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precisely my interpretation of belt driven turntables!
 
bzr said:
precisely my interpretation of belt driven turntables!
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Your analogy is actually quite good. If the central planners just stayed with a fixed money velocity most of these problems would be manged by the markets. When capacity is to high it needs to be wrenched out of the system through deflation which begets recession where the weakest die. All we are doing is postponing the inevitable and in doing so creating the risk of a massive conflagration by undermining fiat money.
 
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