Posted on 08/24/2015 7:40:10 AM PDT by blam
Raul_I_Meijer
August 24, 2015
After losing 11% last week, Shanghai this morning was down almost -9% at one point, after lunch went back up to -6.5%, and ended its day at -8.49%. A Black Monday for sure, but is this the BIG ONE? It really doesn’t matter one bit. Unless perhaps you persist in calling your self an investor, in which case we pity you, but not for losing your shirt. Because God knows we’ve said enough times now that there are no functioning markets anymore, and therefore no-one who can rightfully lay claim to the title ‘investor’.
Plenty amongst you will be talking about economic cycles, and opportunities, and debate how to ‘play’ the crash, but all this is useless if and when a market doesn’t function. And just about all markets in the richer part of the world stopped functioning when central banks started buying assets. That’s when you stopped being investors. And when market strategies stopped making sense.
Central banks will come up with more, much more, ‘stimulus’, but what China teaches us today is that we’re woefully close to the moment when central banks will lose the faith and trust of everyone. After injecting tens of billions of dollars in markets, which thereby ceased to function, the global economy is in a bigger mess then it was prior to QE. The whole thing is one big bubble now, and we know what invariably happens to those.
More QE is not an answer. And there is no other answer left either. Those tens of trillions will need to vanish from the global economy before any market can be returned to a functioning one, and by that time of course asset prices will be fraction of what they are now.
(snip)
(Excerpt) Read more at marketoracle.co.uk ...
vacillating between 350 and 400 (approx) down ... been that way for a couple of hours ..... it’s only 10:30 AM
The sign to cash in your chips at the Dow Jones casino was when China suddenly devalued its currency not once but twice in 48 hours. Failure to stay awake at the table was a huge mistake.
Bumpitty-bump
“The sign to cash in your chips at the Dow Jones casino was when China suddenly devalued its currency not once but twice in 48 hours. Failure to stay awake at the table was a huge mistake.”
And did you get out when China devalued? We’re you awake at the table?
Will the market go up? Or down?
Yes.
My takeaway: if you have cash, don’t buy assets just now.
Black Monday...maybe. Overall feeling, not yet.
Will you tell us when it hits bottom? I have some cash to deploy.
Sometimes it goes sideways.
It is easier to know when to sell than when to buy back in but both are ussualy wrong. Most traders get back too late. The buy and hold works in long run.
Ya know... Using that kind of logic on a day like today can get a man committed... I mean, there are Bilderbergers, PPTs, George Soros, the Banksters, etc running amok worldwide. Can't you see 'em??
You got to get with the program!!! /sarc
If they haven’t already, the Fed will start buying stock index futures
The free market is dead. We have a centrally-planned, crony-capitalist, fascist, politicized financial and monetary system
Yes...but I’m rather sure my IRA administrators didn’t. That’s what happens when you don’t control all your assets.
Remember, according to the Tax Foundation, we are spending US$1 TRILLION per year (as of 2014) in compliance and economic opportunity costs for the current income tax system. And some economists estimate over US$15 TRILLION in American owned financial assets are sitting in non-US banks for tax avoidance reasons. Radical tax reforms such as the Steve Forbes flat tax proposal from 1996 or the FairTax proposal described in that famous book from 2005 eliminate taxation on bank account interest, capital gains and stock dividend payments, and that means all the tax incentive in the world to keep savings and capital formation in the USA as much as possible. And that means stronger banks and a stronger stock market, things that will drive a roaring American economy (and eventually "float the boat" of other economies around the world).
In short, the Federal Reserve's play time is over; we now need fundamental overhauls of national taxation and business regulations for a real economic recovery and future growth.
“The free market is dead. We have a centrally-planned, crony-capitalist, fascist, politicized financial and monetary system”
Exactly!!!!!!
I just got a bunch of Tulip bulbs a Lowe's!
By 11:30 Dow futures have gone from more than 5% down to 2.6%. Speculation is Fed intervention was involved, buying up fallen stocks to slow/raise the crash. ... and people wonder why there is “income inequality” (aka super-wealthy keep getting more so): those who have the money and play such games KNOW such “safety valves” are in place, so as the market crashes they BUY! BUY! BUY! (remember, those recorded falling prices are noted only because someone BOUGHT stocks at that price) and sell minutes later when the “pressure valves” or whatever gov’t-meddling recovery mechanisms engage, making some people a he11 of a lot of money very fast. Lo, the Federal Reserve conjures cash out of empty ledgers, and buys overvalued stocks from quick-flip specialists who understand “buy low, sell high”.
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