Posted on 09/22/2011 4:47:50 AM PDT by mylife
The U.S. Federal Reserve's tacit acknowledgment that America's economic slowdown is likely to persist for quite a while sent global stock markets skidding Thursday as investors brushed off the central bank's efforts to spur growth and focused instead on its gloomy assessment. Oil tumbled too but the dollar held its own against the euro, which has been weighed down in recent weeks over concerns that Greece might go bankrupt. Hong Kong's Hang Seng led stock markets lower, with a near 5 percent dive.
(Excerpt) Read more at finance.yahoo.com ...
Euro Markets are down 5%
More Choke and Change
Futures down 229 right now.
I dont know, but things sure are ugly.
Everything is down.
Bonds,Gold,Stocks,Oil...
Fantastic buys in all markets.
They don’t blow a horn when the bottom is reached, so you’ll have to judge for yourself.
Perhaps more important the U.S. 10 yr. bond, which closed at a new low yesterday, of 1.88%, is now trading at 1.79%.
Was 2.2% 2 months ago!
Ever the optimist eh?
The twist is working!
Kind of...
You first...
Pretty sure this qualifies as falling from the sidewalk, into the gutter.
(assumes a prone, passed out drunk posture, as a starting point)
(it may not hurt much, but you can’t get much lower)
Buy low, sell high, right? The only question is how low is low.
I’ll take 7-8 times trailing earnings with a 5-6% dividend. Don’t see that yet.
Here’s hoping the trashing of paper metal prices continues until my next payday. Maybe I can get some silver at 36/oz.
I used to wonder if the Fed could ever get more stupid. But they never seem to disappoint. Taking long rates down just digs a deeper hole. We are never ever ever going to pay back those 10 years (never mind 30 years) with paper worth anything close to today’s. The buyers will be lucky if we simply don’t default. So this bubble in long bond prices will certainly pop and the bigger the bubble the worse will be the effects of the pop.
twist of the knife.
Does anyone have a record of stock performance on days that TOTUS delivers speeches?
Wall Street expectations were not met as they expected the Fed might offer a glimmer of a hint they might fire up the printing press with another round of QE3 pump and dump to move stocks up. The Feds unwritten mission has always been to push up stocks and the hxll with the dollar. Problem is the stock market is not now and never has been 100% correlated and representative of the economy and the fundamentals favor the bear not the bull. The market is about expectations.
It was baby boomer demographics and new IRA/401K retirement plans that pushed the stock market up during the 80s and 90s and since then, it has essentially been dead money for buy and holders. The overhead is about demographics. Americans that are now in or approaching retirement want yield and secure returns and are not as interested in a Ponzi scheme or playing musical chairs where as demonstrated repeatedly, the casino and insiders control the music.
The dream of Wall St insiders (after they got IRAs and 401Ks) has been to capture the cash flow and a cut from Social Security taxes, and that inflow to market will offset the downward bias from boomers liquidating equity to live on. It will transfer from a government Ponzi scheme to a Wall St Ponzi scheme. Different players same outcome except Wall St banks will get their greedy corrupt paws on a significant cut just like the Fed Reserve.
By reducing savings rates to almost zero the Fed is pushing money towards their NYC money people cronies and limiting options on interest returns for average savers. Buy into the stock market at your own risk. Expect another major hit before the end of the year exacerbated by declining global earnings and US tax selling. Nothing will be fixed in DC this year or even later because politicians are inherently corrupt and interested only in getting reelected and helping those who feed them - big donors, and not at all interested in fixing our nation.
green shoots,
It seems almost everyone in a position of leadership in this nation is trying to push the coming disaster on beyond their time of service. But, as I wrote our governor when he declined to run for president due to “family issues”, when this blows, all their families are going down right along with mine.
Good analysis!
But with negative real interest rates, and the market still overinflated, what’s a saver to do?
Suggestions?
Buy physical silver and gold, as well as making the usual domestic preparations.
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