MARKET CRATERS (DJIA -279) ON MOUNTAIN OF HORRIBLE NEWS: Here's What You Need To Know

TBI ^ | 6-1-2011 | Joe Weisenthal

[blam]

MARKET CRATERS ON MOUNTAIN OF HORRIBLE NEWS: Here's What You Need To Know

Joe Weisenthal
Jun. 1, 2011, 4:00 PM

Finally. The market craters.

But first, the scoreboard:

Dow: -276.85
NASDAQ: -65.84
S&P 500: -29.97

And now the top stories:

* The easiest place to start, when describing what happened today, is by pointing out that economic data has been weakening for sometime, but the market has really been holding up just fine. Everyone's been wondering: When will that give? That may have begun today

* Because it was PMI day around the world, there was quite simply, a huge pile of news. Chinese PMI was below expectations. Aussie GDP was below expectations. PMIs across the Eurozone were consistently disappointing. The biggest sore spot, the UK, was a total debacle, as a double dip seems now all but confirmed.

* After a decent start to markets, everything turned negative in anticipation of data from the US.

* And the data in the US did not disappoint the doomsayers. The ADP jobs report was a disaster, which is very inauspicious for Friday's Non-Farm Payrolls report. Later on the ISM clocked in with a sizable whiff, though everyone seemed to know the whiff was coming.

* Suddenly everyone was screaming QE3! Gold soared. Stocks tanked, signalling the belief that even if the Fed were inclined to do more easing, all the water has been squeezed from the stone, and that it would be purely inflationary without any benefit.

(snip)

[blam]

[PA Engineer]

I wonder why silver tumbled downward around 3-4pm EDT?

Hang on to your bullion and get out of paper silver. Comex is playing games again today.

[PA Engineer]

I've been preparing for quite some time, but its still disturbing to stare this in the face.

Agreed. Prepping for years. Mortgage finished in three months and zero debt. Watching this unfold as I thought it would is making me sick.

If QE3 is announced I'm out with penalty on one of my retirement funds and into 100% bullion. The remaining retirement investments are in commodities and ag. Helicopter Ben certainly has created a mess in what to do with those.

The Fuhrer is golfing in the bunker while Berlin is in flames, commanding the Keynesian socialists to stay the course.

We know how this is going to end for those willing to see. There is going to be horrible suffering.

[Kartographer]

Time to buy commodities and I am not talking gold and siver (thought those would be nice if you can efford them) I am talking food guns, ammo, basic household supplies like soap, papergoods, cleaning supplies, good sturdy clothes including extra socks, underwear and extra shoes and boots, a extra couple changes of oil and filters for your car, tools, things you buy everyday start buying two and put one up.

I think that we are at the very least in for a collapse much like that of Argentina’s ( http://www.youtube.com/watch?v=7yerKMQc7-w&feature=grec_index), but as a armed society with a very large entitlement minded population our collapse will be much more violent and I see many many small business wiped out by flash mob looting, and large scale violence (look at what happened just this past weekend). I see what I call ‘Pocket Pogroms’ taking place in many big ‘Blue’ cities and if you aren’t Amish it’s going to get Reginald Denny bad for you very quickly.

For those who haven’t prepared and would like to start or for those that have and are just interested you may download my Preparedness Manual at:

http://www.tomeaker.com/kart/preparedness1i.pdf

As the LDS say “When the emergency is upon us the time for preparedness has past.”

Or as the bible says: A prudent man sees danger and takes refuge, but the simple keep going and suffer for it.
NIV Proverbs 22:3

[cherry]

Savage today was talking about the crooked billionaires and bankers....we are doomed...

I wonder if its just better to get off the grid.....pay off your bills when you can...get your house free and clear....live cheaply...don't work....and pay less tax...

I guess cheat too....

[blam]

Asian shares slide on signs of slowing US growth

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"I wonder if its just better to get off the grid.....pay off your bills when you can...get your house free and clear....live cheaply...don't work....and pay less tax..."

You just described me. I don't owe anyone anything...been that way for almost 20 years.

I'm prepared for most anything too.

The biggest thing in my day is walking with my dogs in the woods daily.

[MHGinTN]

You lucky dog ... er, dog walker.

[Lancey Howard]

Suddenly everyone was screaming QE3!

Yeah, that's what we need - - another scumbag Democrat slush fund for bailing out government union pension funds and corrupt city governments. Yeah, that'll help.

[blam]

War Zones: As The Economy Dies, Murders, Shootings, Robberies And Looting Erupt All Over America

[Lancey Howard]

It’s a beautiful thing. Our house is nearly free and clear, debts are minimal, kids are grown, and we have ten+ acres of woods and a creek and a garden. Plenty of deer around, too, since a big state park is next door. There’s plenty of room here for my kids to come back if they have to.

I’m watching the world go by with bemusement. It does seem like the parasites finally outnumber the hosts. The Democrats have won. It will be interesting to see what happens next.

As far as my Rottie goes, well, she’s blind and deaf now, and doesn’t get around much anymore, but she’s family. I hope she lasts the summer.

FRegards,
LH

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"As far as my Rottie goes, well, she’s blind and deaf now, and doesn’t get around much anymore, but she’s family. I hope she lasts the summer."

Sorry to hear about Rottie. My Tut, a Yellow Lab, is the same way but he can't even walk any more.(click on my name to see my dogs).
I built a wagon with bicycle wheels and pull Tut through the woods trail each day. He probably won't make it through the summer either...he's family.

[cynwoody]

Buy Greek bonds! Look at the return on them!/s

Remember GMW, GM's $25 7.25% minibond, due in 2041?

In March, 2009, it was priced to yield about 90%. I hope you didn't buy any. Or, if you did, that you found a greater fool in time.

[PA Engineer]

Thanks. I was following the violence this weeked. It is going to be a long hot summer. Stepping up different kind of preps now.

Have three months left on the mortgage and will be completely out of debt. Watch for QE3. That is my signal to boost my investment strategies from 20% to 40% bullion. All other preps are almost complete (12 years prepping).

[blam]

Good for you. Debt free, nothing like it.

I'm done prepping...just continuing to tweek around the edges. I just received another $200.00 in antibiotics yesterday. (Goes to cold storage)
I have a gun permit an carry everywhere I go.

[Lancey Howard]

That’s a good thing that you have several dogs. My son always said we should keep at least two dogs - - sort of cycle in a new one every five years or so. Good luck to Tut. I always hope the pets go peacefully in their sleep.

In fact, I hope I go peacefully in my sleep. Not anytime soon, though.

FRegards,
LH

[PA Engineer]

Good for you. Debt free, nothing like it.

In Western Pa we were never caught up in the real estate bubble. I guess you could say my rural community is rather wealthy, however I had a disturbing discussion with my mortgage bank manager today. The bank is local and has an excellent rating based on lone risk. They were thorough in our loan and reconstruction applications and I was impressed (if not frustrated) during the process.

Today I went in to make a payment to bring it down so I could present my better half with the title during our anniversary. There were complications with their software and I apologized about the problem and the trouble I was causing. The manager literally yelled; "Don't ever apologize about paying your debt off". Woah! Alarms went off. I looked around and the rest of the employees were looking down doing their work so as not to be noticed. When she came back from the phone to check the problem I asked if we could talk.

I went into her office and we talked. I didn't like what I heard. Remember this is a good bank with high ratings. I asked her if there were issues with underwater mortgages. No. There were issues with home equity loans. How much? One percent below the national foreclosure averages. Silence. We literally sat their for a minute. I laughed and explained that at least they were not going to experience the commercial loan default crisis that my other "national" bank was experiencing. She laughed at that. The discussion ended up with a discussion in local investments when the mortgage is paid off (with private banking counseling). Read foreclosures converted to rentals with the occupants staying put and bank guarantees. Interesting.

I was troubled by all this and have thought about it all day, night and now morning. This problem at the moment is invisible. This is a problem resulting from unemployment and inflation (not to mention bad financial decisions). This is not an issue about underwater mortgages. This is an issue that is greater than the underwater mortgages.

This was a very fine person who was under considerable stress. I guess this is a heads up to a problem that is being covered up or ignored by our media and government. Why? Everything about this country is about deceit and manipulation of public opinion.

I have tried to always be optimistic without allowing my darker side to be a cassandra. I think it may be time to give into the cassandra. Well I guess you will understand if I tell you to keep your powder dry.

[PA Engineer]

lone = loan

[blam]

" Well I guess you will understand if I tell you to keep your powder dry. "

Indeed. Thanks for the insightful info.