Skip to comments.Nikkei dips 610 pts to 14,008 at close
Posted on 02/04/2014 2:28:21 AM PST by Red in Blue PA
Nikkei 225 Stock Average declined 610.66 pts or 4.18%, closing at 14,008.47.
Toyota edged down by over 5%. Panasonic, Sharp and Hitachi will soon announce quarterly results.
Nippon Paint tumbled 21% over the issuance of new shares.
(Excerpt) Read more at aastocks.com ...
From current Reuters story on this-—
“Global investor sentiment was rocked by U.S. data showing manufacturing activity slowed sharply in January on the back of the biggest drop in new orders in 33 years, while construction spending barely rose.”
That’s the biggest drop in orders in THIRTY THREE years.
But hey, buy the dip/s
The longer an upside move, the longer and deeper a downside move, assuming the market has not corrected. And it has not corrected in years. We are overdue.
And what your post highlights is that the economy has fundamental failings; it is not strong as the talking heads on CNBC claim. They have a vested interest to keep people buying. Listen to them at your own peril.
While I agree entirely with your post, I also strongly feel that the biggest fundamental failing the economy has is sitting in the White House. If he resigned tomorrow an was replaced by someone who truly believes in market economies, who believes in individual success, and who just made the statement that they were going to find a better solution than Obamacare - the market would recover in a heartbeat, consumer confidence would rise, and things would turn around.
“Why is it China can look out to the future but our politicians cannot?”
China is also in trouble, for a significant number of reasons. That said, you are right about our politicians not having vision. Part of this is because politicians are politicians - that is their expertise. The problem is that the political ‘class’ has become too powerful - with too much control over too many things.
I agree that we have poor fundamentals right now, and that printing new money to cover growing debts is a strategy doomed to fail. What I’m saying is that if the right person were in the Presidency, and the right people were in Congress, just starting to rectify these issues would lead to a shift in public confidence, bring some of the money from the sidelines back into the game, and at least gives us hope that we could ‘grow’ ourselves out of this mess.
Blah. Blah. Blah.
They can stop printing, deflate, and let the banks crash, or they can inflate, and destroy the currency to buy them a couple of years. They’ll do the latter. They are trapped.
I think it will take “the right people” to turn the train around as well. But, not sure they exist or will be permitted to obtain power if they do.
Billions up in smoke.
Blah, blah, blah right?
People lampoon Ron Paul all o the time but he is one of the only ones calling for the Fed to be audited, a common sense reform.
Every business is audited, even individuals who may be off by a few hundred dollars on their taxes, yet we do not audit the Federal Reserve which prints TRILLIONS of dollars?
That is pure lunacy.
The current market isn’t based on reality, but on the expectation of government support.
If we suddenly got a capitalist federal government tomorrow, the DOW would collapse; however, Main Street would boom.
After the Dow readjusted to tracking a real economy, it would then recover and grow to match real growth.
Hard to say what would happen in the short-term, but you are right that we'd all be better off in the long haul, and the stock market would also be stronger and more based in reality in the long haul.
Ebb and flow.
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