Posted on 06/13/2022 10:58:45 AM PDT by Red Badger
The stock market plummeted more than 600 points when it opened on Monday over inflation while President Joe Biden crowed over a revisionist job market and non-existent savings by Americans.
“The job market is the strongest it has been since WWII, notwithstanding the inflation. […] Millions of Americans are moving up to better jobs and better pay, and since I took office, families are carrying less debt on average in America, they have more savings,” Biden said in a speech in Los Angeles.
The S&P 500 is now officially in bear market territory as global stocks tumble and bond yields jumped over skyrocketing inflation. The technology-focused Nasdaq Composite Index, which entered bear market territory in March, dropped another 3 percent as markets opened. The Dow Jones Industrial Average dropped more than 600 points.
Meanwhile, Americans are seeing the highest gas prices ever and a level of inflation not seen since the Jimmy Carter years. In fact, many contend it has now bypassed that level of inflation and we are in new, painful territory.
Biden’s blaming of Putin and the Ukraine war is not convincing most Americans as they increasingly struggle to make ends meet, and “stock market crash” trended on Twitter Monday morning.
Consumer data on Friday showed that prices rose 8.6 percent year-over-year in May. That’s the fastest rise in prices since 1981. Many Americans are now not only having trouble finding items, they also can’t afford them any longer, just as they cannot afford the cost of gas which is continuing to surge.
“The very fact that it overshot expectations has really frayed investors’ nerves even more and shown how difficult it is to try to keep a lid on inflation,” Susannah Streeter, a senior investment and markets analyst at Hargreaves Lansdown, told the Wall Street Journal. “The worry is that inflation is getting too hot to handle for central banks and they’ll have to dose economies with cold water in the form of tighter policy.”
On Tuesday, the Fed will meet and it is widely expected that the central bank will announce on Wednesday it is raising its benchmark interest rate by half a percentage point adding even more pain for Americans. Expectations that the Fed will be forced to move even more aggressively this year have risen since Friday’s inflation report.
When will the catastrophe facing this nation be finally recognized by all its citizens? How could any rational voter remotely consider more of this administration for even another day, let alone two and a half years more? pic.twitter.com/77DgYKmVbs
— James Woods (@RealJamesWoods) June 13, 2022
“It seems as though inflation is staying for longer than expected,” Kiran Ganesh, a multi-asset strategist at UBS, stated evidently not getting what almost every American already knows. “People are now beginning to fear that the Fed will have to go further or faster in terms of interest rates.”
Tech stocks had big declines on Monday. Apple shares were down 2.5 percent in early trading. Amazon.com shares lost 4.3 percent. Chip maker Nvidia lost 4.8 percent and Elon Musk’s Tesla was down 3.1 percent. Meta Platforms, the parent company of Facebook, also lost 2.9 percent.
“This is what you call a bear market where fear is taking place and pushing people out of the market and having people empty up portfolios and capitulate,” Todd Morgan, who is the chairman of Los Angeles-based Bel Air Investment Advisors, noted.
Cryptocurrencies also got hammered on Monday after interest-rate fears sparked a weekend selloff according to the Wall Street Journal.
Shares in Asia-Pacific plunged as well on Monday, with Hong Kong’s Hang Seng index, Japan’s Nikkei 225, and South Korea’s Kospi all falling more than 3 percent. European stocks also tumbled, with the pan-European Stoxx 600 shedding 2 percent as a sea of red swept through global risk assets according to CNBC.
“I do think that the probability of falling into a bear market and indeed a recession has undeniably increased as a result of Friday’s punch in the gut, in a way,” Fahad Kamal, the chief investment officer at Kleinwort Hambros, told CNBC on Monday.
He added that there was “very, very little good” in Friday’s inflation report, which he said indicated that inflation has not peaked and has instead broadened throughout the economy. This comes as whispers of a depression are beginning to circulate.
Biden is literally being eviscerated on Twitter as the stock market dives off a cliff:
The reason they had to get rid of Trump was he was actually stopping their 30 year plan to steal the country from the citizens by flooding it with foreigners.
💲 Flow into the Deep 🚽. Very Deep 🚽
That 🚽 is devaluation of 💲
Raising interest rates will not empty the 🚽 overflow.
“rate by half a percentage point”
Not nearly enough. Should be at least 1 per cent BUT, they are backed into a corner. Wait till the interest payment on the debt comes due.
Its just about out of control.
I'd expect the pool houses to be on the market in a year ... expect the plants to be a regret ... and expect the vacationers to be glad they did it while they could, but that's all they'll have to talk about for years.
I sold a rental in March, it was crazy. 8 bids first day. Couple who bought it didn’t even look at it, ever. That kind of frenzy has to cool off. Boom and bust, the American way in the 21st century. I hate it, but gotta play along for now.
Naw it is not a drug.
Biden just don’t know shite from shinola
Utter B.S.!
Be sure to thank any of them 81 million alleged voters, when you see or meet one that is........
It's probably 50/50. Mules at right places. Joe's the President. FWIW, JFK cheated, especially in Illinois. Looked like Nixon won.
I see a few stickers on cars, faded out, and frowning assholes at the wheel..................
2020: Stole U.S. election.
2021-2022: Senile Sleepy Joe's DPC handlers now have the country in a recession with inflation worsening (8.6% inflation rate reported last week by the government, worst in 40 years). Technically speaking, we're not quite yet in recession but we're really close. Let's hope the idiotic DPC doesn't push the U.S. and world into a major depression. Don't know what the probability of that happening is but it's certainly a distinct possibility given how things are looking.
In 2020, the DPC basically said to all Democrat/RINO voters: Nothing, literally nothing, can be worse than the super-popular, super-successful President Trump. And far too many lemming Democrats/RINOs agreed and decided the twice-failed Democrat Presidential Primary candidate (1988 & 2008) - the 79-year-old, do-nothing, senile Sleepy Joe - was the perfect person to wheel into the Oval Office. (Two years later, the world now sees what we guaranteed in 2020 would happen if the DPC stole the election and gurneyed senile Sleepy Joe into the White House.)
Not only did the clueless, senile Sleepy Joe supposedly "win" the election, he was supposedly "the most popular President in U.S. history," having supposedly "won" more than 81 Million votes! You know there's something very fishy going on when the entire MSM was obsessively replaying videos in November 2020 of young Americans in their teens and early 20's giddily dancing in the streets because the 79-year-old, senile Sleepy Joe supposedly "won" the election. Please. The over-acting by the Democrat Party Cabal, Democrats, and RINOs is even worse than the terribly bad acting by Scambuser Turd on the witness stand as she testified against Depp.
And keeping their corrupt gravy train of foreign aid kick-backs.
“families are carrying less debt on average in America, they have more savings,”
Rent up $300 more a month from last year and 401K down 10%. What the H$LL is he smoking?
That may be true in cities, but in this rural area, people from other places-cities or another state who moved here are seeing that they might have made a bad bargain on a house on acreage in a gated enclave, and that this is not just like the city-we are beginning to see those people packing up, and those big houses dropping in price every week or so.
The culture shock is apparently real-the neighbors do have livestock-fences with purple painted posts mean no trespassing-lawsuits and fines happen because of light pollution, loose dogs, trespassing kids and property damage, etc. If a house has a swimming pool, no one will fill it this Summer-no water system will allow it, no water filling station-not even the VFD-because rain is scarce in the Southwest right now-and if you fill that pool from your well-if you have one, you are likely to ruin a pump by getting the water too low-and could be turned into the local water conservation people and fined for pumping that much water for non-agricultural use-it-that even happened to a guest ranch owner.
Because of agriculture and closeness of the river and lake, there are environmental concerns here, too-non native plantings that are not drought tolerant are not permitted unless they are confined in containers so they don’t escape into or near waterways-they will freeze to the ground as soon as it gets cold enough to snow anyway-usually by mid-January...
Local people who know how to live in BFE will end up buying those places as the prices crash and that is a good thing...
One of my pet peeves is the use of “literally” when the writer means “figuratively.”
“FWIW, JFK cheated, especially in Illinois. Looked like Nixon won.”
Texas was the other state (was blue at the time). There were counties that had more votes than population. There was a large politically corrupt machine in Texas. Daley’s graveyard vote definitely gave him Illinois. Most common thing said on election day in Chicago, “Vote early, vote often.”
Nixon was told to not contest the election for the good of the country. Later he won with the largest electoral college margin in history (as of that date).
Right?! I'm sure he's probably using the old stat of household debt vs. GDP. Hardly a representation of reality though.
You are right-it is starting here-the pool-and-fancy plant/yard houses on acreage are already going on the market-with the prices dropping close to 10K every week and no takers. Eventually people used to living in the country will buy those places for a fair price, tear out all the non-native stuff, fill in the pool, put up a pole barn and bring in chickens, veggie gardens, apple trees, etc-make it useful and productive...
Recession: Two consecutive quarters of negative GDP growth........................
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