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Market meltdown

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  • #16
    Originally posted by seanD View Post
    Bout 10,000 DOW points from Trump's inauguration... poof, gone. To get some perspective of what a "big fat ugly bubble" is -- It took about three weeks to lose what was built up for about three+ years. And I don't think it's done. We'll see if Fed heroin injections can get the heroin market junkies back in the game.
    well I got about 75% of my retirement into money market right at the beginning of the fall. So when it finally hits bottom and starts climbing back, I can reinvest it and hopefully make a profit on all this. I think of it as a stock sale.

    But that depends on who wins the election. If a democrat does, we can look forward to to at least 4 more years of floundering.

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    • #17
      Originally posted by Sparko View Post
      well I got about 75% of my retirement into money market right at the beginning of the fall. So when it finally hits bottom and starts climbing back, I can reinvest it and hopefully make a profit on all this. I think of it as a stock sale.

      But that depends on who wins the election. If a democrat does, we can look forward to to at least 4 more years of floundering.
      It depends on what the economic data looks like going forward. If it's really bad, the market ain't going to recover, or if it starts moving up between now and then, it's going to get spooked again. It's like a vicious loop. When the market turns into a bear, the economy falters, which makes the markets even more bearish. Personally, I'm curious to see what the GDP data says. Everyone is now screaming recession, which means two straight quarters of negative growth. Though the service sector is going to get pulverized, I'm thinking it's possible all the panic buying will either spike the number or at least keep it balanced around where it is now. I'm just not sure of that. 70% of GDP is consumer spending, but I'm not sure how much of that is the service sector consumption. Might be an interesting bit of research.

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      • #18
        Originally posted by seanD View Post
        It depends on what the economic data looks like going forward. If it's really bad, the market ain't going to recover, or if it starts moving up between now and then, it's going to get spooked again. It's like a vicious loop. When the market turns into a bear, the economy falters, which makes the markets even more bearish. Personally, I'm curious to see what the GDP data says. Everyone is now screaming recession, which means two straight quarters of negative growth. Though the service sector is going to get pulverized, I'm thinking it's possible all the panic buying will either spike the number or at least keep it balanced around where it is now. I'm just not sure of that. 70% of GDP is consumer spending, but I'm not sure how much of that is the service sector consumption. Might be an interesting bit of research.
        Invest in paper product manufacturers!

        I will probably wait till it is climbing steadily once more and not try to predict the bottom. But it will eventually go back up. I am in it for the long haul anyway. I retire in 10 years.

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        • #19
          Originally posted by seanD View Post
          Bout 10,000 DOW points from Trump's inauguration... poof, gone. To get some perspective of what a "big fat ugly bubble" is -- It took about three weeks to lose what was built up for about three+ years. And I don't think it's done. We'll see if Fed heroin injections can get the heroin market junkies back in the game.
          It doesn't matter, it'll bounce back after the pandemic is dealt with. Lots of idiots selling stock now, which will be bought up by the cognitive elite. Then we'll be regaled with whiny socialists crying about the "rich getting richer" ad nauseam. It's the circle of life.
          "As for my people, children are their oppressors, and women rule over them. O my people, they which lead thee cause thee to err, and destroy the way of thy paths." Isaiah 3:12

          There is no such thing as innocence, only degrees of guilt.

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          • #20
            Originally posted by Darth Executor View Post
            It doesn't matter, it'll bounce back after the pandemic is dealt with. Lots of idiots selling stock now, which will be bought up by the cognitive elite. Then we'll be regaled with whiny socialists crying about the "rich getting richer" ad nauseam. It's the circle of life.
            The pandemic wasn't the cause. It was just the trigger. Both the Dow and S&P were moving sideways with violent dips and peaks the whole year of 2008, and was beginning to show signs of instability last year before the Fed had to get involved once again. Any black swan would have triggered it.

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            • #21
              Originally posted by seanD View Post
              The pandemic wasn't the cause. It was just the trigger. Both the Dow and S&P were moving sideways with violent dips and peaks the whole year of 2008, and was beginning to show signs of instability last year before the Fed had to get involved once again. Any black swan would have triggered it.
              So apparently two republican senators just happened to sell off their stock just before the stock market tanked. It was all just a routine move and not inside trading at all.

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              • #22
                Actually 3 republic senators and 1 democrat.

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                • #23
                  Originally posted by Sparko View Post
                  So apparently two republican senators just happened to sell off their stock just before the stock market tanked. It was all just a routine move and not inside trading at all.
                  The market was already under stress in the fall of 2019 up to this event. The Fed intervening and pumping billions into the repo market was sending out ominous signs. Had the Fed not intervened, the repo liquidity problem would have been the black swan that took it down, like it did in 2008.

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                  • #24
                    Originally posted by Super Cow View Post
                    Actually 3 republic senators and 1 democrat.
                    So few?
                    Remember that you are dust and to dust you shall return.

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                    • #25
                      People forget that we're still in a "big fat ugly bubble," only now we're back to Obama's "big fat ugly bubble." That bubble never went away. And, as Trump rightly pointed out during the election, it's no less a bubble than Trump's popped bubble because it was created the same way by the same Fed. So even if all the billions/trillions of dollars of stimulus can reflate the Trump bubble, we're just reflating it once again on top of Obama's bubble.

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                      • #26
                        Originally posted by seanD View Post
                        People forget that we're still in a "big fat ugly bubble," only now we're back to Obama's "big fat ugly bubble." That bubble never went away. And, as Trump rightly pointed out during the election, it's no less a bubble than Trump's popped bubble because it was created the same way by the same Fed. So even if all the billions/trillions of dollars of stimulus can reflate the Trump bubble, we're just reflating it once again on top of Obama's bubble.
                        There is no incentive to 'fix it', since that will create the mother of all crashes that they'd be blamed for. Therefore they kick the can to the next guy.

                        Go democracy!
                        Remember that you are dust and to dust you shall return.

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                        • #27
                          Originally posted by demi-conservative View Post
                          There is no incentive to 'fix it', since that will create the mother of all crashes that they'd be blamed for. Therefore they kick the can to the next guy.

                          Go democracy!
                          And the Fed is going at it full throttle, baby. They're still injecting liquidity into the repo market ON TOP OF regular QE. They're doing both. And repo amounts have increased to... take a breath... ONE TRILLION A DAY

                          The Fed has already slashed interest rates to zero, added $1 trillion in daily repo operations, and created facilities to help commercial paper, money markets and municipal debt.
                          I laugh only because it's so insane that you have to just laugh. No one is talking about this. I suspect now that the repo trigger has to do with the derivative bubble that everyone forgot about. And the fact they're bailing out hedge funds is practically a confirmation that this is derivatives related. ZH has a really good article about it.

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                          • #28
                            Originally posted by seanD View Post
                            And the Fed is going at it full throttle, baby. They're still injecting liquidity into the repo market ON TOP OF regular QE. They're doing both. And repo amounts have increased to... take a breath... ONE TRILLION A DAY
                            Wasn't it normally about 1-2 trillion per QE, and now it's 1-2 trillion a day?

                            I laugh only because it's so insane that you have to just laugh. No one is talking about this. I suspect now that the repo trigger has to do with the derivative bubble that everyone forgot about. And the fact they're bailing out hedge funds is practically a confirmation that this is derivatives related. ZH has a really good article about it.
                            Hedge funds are now too big to fail.
                            Remember that you are dust and to dust you shall return.

                            Comment


                            • #29
                              Originally posted by seanD View Post
                              And the Fed is going at it full throttle, baby. They're still injecting liquidity into the repo market ON TOP OF regular QE. They're doing both. And repo amounts have increased to... take a breath... ONE TRILLION A DAY
                              “The Fed is buying about $70 billion in off-the-run Treasurys today. That brings their total purchases this week to $300 billion,” Incapital chief market strategist Patrick Leary said Friday. ”$160 billion was the highest we saw in any week during the financial crisis.”

                              The financial markets are fake, retarded and a massive hazard, and they need to die.
                              Remember that you are dust and to dust you shall return.

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                              • #30
                                Originally posted by Sparko View Post
                                So apparently two republican senators just happened to sell off their stock just before the stock market tanked. It was all just a routine move and not inside trading at all.
                                Four Senators have been named Feinstein, Burr, Inhoffe and Loeffler

                                I'm always still in trouble again

                                "You're by far the worst poster on TWeb" and "TWeb's biggest liar" --starlight (the guy who says Stalin was a right-winger)
                                "Overall I would rate the withdrawal from Afghanistan as by far the best thing Biden's done" --Starlight
                                "Of course, human life begins at fertilization that’s not the argument." --Tassman

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