Ron Paul Is Warning That A 50% Stock Market Decline Is Coming – And Theres No Way To Stop It
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Madison320
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Yeah, that's the problem. It's not rocket science. The Obama fans like Zippy and TheCount ignored it and now the Trump fans are ignoring it.
You do not have a healthy economy if you're bleeding red ink, especially when you're bleeding read ink at unprecedented levels.
Krugminator2
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Really curious to see what the market does today. Normal would be a gap down, sell off and rally to green. If it doesn't do that and gaps down has a weak rally and continues down you might get another huge selloff.
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Interesting that the stock and bond markets both dropped. It occurred to me that the Fed is trying offload Treasuries, so that will result in an increase in bond rates all by itself if there are not enough buyers.
Now the Chinese have previously been big buyers of US Treasuries, so what if China has throttled back on purchases? Could this be leverage that the Chinese are using in the trade negotiations?
Now the Chinese have previously been big buyers of US Treasuries, so what if China has throttled back on purchases? Could this be leverage that the Chinese are using in the trade negotiations?
Krugminator2
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Usually I would buy the shit out of this. Statistically it is a good buy right here. But something doesn't "feel" right. This doesn't feel panicky enough. Wouldn't be surprised to see SPY sell off. Will probably miss the rally but gut says prices go lower. VIX is down on a down day. which is really weird Me thinks people a little too conditioned for a bounce.
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I agree. I haven't seen any of the usual evidence of the PPT stepping in yesterday or today. Gold and silver shooting up even!
Madison320
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This could get interesting if the markets keep dropping with an election coming up. My guess is the Fed will try to wait until after the election before they go to their playbook to avoid appearing biased.
Fed Playbook:
1. Make comments about slowing rate hikes.
2. Make comments about freezing hikes for an extended period.
3. Make comments about lowering rates.
4. Lower rates.
5. QE4.
Original_Intent
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I think a true reset would take the DJIA to around 8K. So I think a 50% selloff prediction is, if anything, a pretty conservative estimate.
Original_Intent
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I think you are probably right. I think they'll time the real crash for about 2 years from now. At least I suspect that's the plan, things don't always go the way even the Fed wants them to.
Madison320
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I don't think they're trying to time or plan anything. I think they're just trying to keep everything from falling apart. Of course they're the ones that created the problem when they launched QE and ZIRP back in 2008.
Most of that "money" was imaginary accounting book entries that never went anywhere except the banking circles, and ended up in the form of giant price bubbles in stock, bond and real estate. It was all imaginary. The fact that the S&P500 bottom was '666' told the tale. It was all bs from that point on...'666' was a reference to imagination and creating a story that wasn't real. The fruit of the (kabbalah) tree.
Oh and Dow futures are shitting this morning. -270 at 4:10am et.
Madison320
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I don't see how the QE money is any more imaginary than any other FRNs. The banks traded (way overpriced) assets like mortgage back securities for currency that can be spent like any other currency, as far as I can tell. If they can't spend it what good is it to them?
Granted, it is all imaginary/illusory but how the money came into existence makes some of it more illusory than others. QE and the similar bank created accounting entries that never enter the economy have no value whatsoever since they were not earned in any form. Much of the stock market numbers are from this kind of money, mere accounting entries. They can be zero'ed back out just as easily as they were created. TARP was an example of worthless accounting entries used solely to fix ledger holes but was not "spent". It is the 401k/IRA/retail investor/etc money that is earned through labor and therefore has value. The primary purpose of stock markets is to remove that earned money from the slaves periodically. Once we went from actual physical currency based markets to solely digital markets, it all became nothing more than a book entry accounting game. That's the best way I can explain it.
DamianTV
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The Dow Has Now Plunged 2,368 Points From The Peak Of The Market
http://theeconomiccollapseblog.com/...unged-2368-points-from-the-peak-of-the-market
Read if youre interested... and youre NOT Zippy...
http://theeconomiccollapseblog.com/...unged-2368-points-from-the-peak-of-the-market
Read if youre interested... and youre NOT Zippy...
Zippyjuan
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Dow is up about 500 points right now for today.
It is earnings report week. They can be volatile as some companies come in below or above expectations. Dow was down almost 600 points yesterday and up over 400 today. There is also some concern over rising interest rates and long term effects of Trump's tariffs.
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Gold still at 1232.00 , but silver is still a bargain. When you are on vacation you should come by the store in southern In and buy yourself something nice for Christmas . I always get myself something nice , do not want to trust that to Danke .
Madison320
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I've heard this before, that the Fed can just "erase" the money it created. There's one big problem with that. Somebody owns that money. Whoever owns it is not going to sit quietly and let the Fed "erase" it. That's like saying the money in your bank account is merely an electronic entry and the bank can "erase" it. That's true but they run the risk of getting shot by their customers.
The only way the Fed can reduce it's balance sheet is by selling its assets and then "burning" the money it collects. The problem is that the Fed's assets are worth much less than the Fed paid for them. So even if they sold all those crappy mortgage backed securities, they'd still have a few trillion left on their balance sheet.
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You gotta look at it from a bit higher perspective. If that money is all maintained within the Fed's closed system of banks that make up the Fed Res System, the Fed never loses ownership of it, nor do the top level personnel that administer those banks go against directives from the FRB. Do remember that all of it is private currency owned by the Fed in the first place (says so right on the notes), comparable to casino chips in a casino. Reserves held with the Fed or in bank trust accounts, etc.
That is very different than the digits held in a customer's account, though it is important to remember that there are no "customer accounts". There is a pool of digits held in trust by the respective banks and the "account" with the number and "your" name is merely an accounting designation, not segregated funds. The accounting entries I am talking about are the ones not tied to the pooled digits tied to accounts. Those digits are the earned money I referred to.
The Fed does a lot of things behind closed doors that are never disclosed so paying attention solely to one set of books (the public books) while not accounting for the second set of books (the private books, where only glimpses are provided by express legislation, such as the trillions "loaned" to foreign central banks that was never released until act of congress required it) means only seeing half of the picture. Bottom line, not all money is created equal in this system and some is more illusory than others.
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