Markets not happy

[Torie]

at all. Man this has been an expensive week for me.

 

[Swing low, sweet chariot. Comin' for to carry me home.]

Europe

[CultureKing]

Go Japan!

[Beet]

UK gilts are a good investment too. JGBs are a solid bet. Pretty much any government debt security not tied to the notorious euro and the hard money anti-Keynesians in charge in Brussels, excepting maybe for German bunds. Gold is good for now but if we really go into a depression then gold is not good.

[J. J.]

Dow now down 446.  Happy birthday, Mr. President.

[J. J.]

Dow down 514.61.

[King]

There is no reason for this.  Every news report that could possibly effect the markets happened before today.  People are just depressed and are taking it out on the economy.

Some Prozac would stimulate the financial sector.

[Foucaulf]

Remember back in 2009 when people were complaining about stocks rebounding to pre-recession levels while "Main Street" was still in the pits? I guess the playing field is now more balanced.

There is talk about a theory where traders have been so focused on the debt crisis's resolution that the Eurozone debacle brought forth a rude awakening. I would like to expand on that, thinking the fall happened because the debt crisis prevented a less panicked reaction regarding the Eurozone, over a longer period of time. It'll be interesting to see if the sell-off today make the impact of tomorrow's job reports less significant.

[CARLHAYDEN]

As I noted some time ago, the stock market is NOT a good investment under current financial circumstances.

I went with the Loonie (the Canadian Dollar) which has appreciated from approximately $0.78 US when Obama took office to approximately $1.02 US today.

Also recommend the Aussie (the Australian Dollar) which has appreciated from approximately $0.63 when Obama took office to approximately $1.05 US today.

[Ban my account ffs!]

As I noted some time ago, the stock market is NOT a good investment under current financial circumstances.

I went with the Loonie (the Canadian Dollar) which has appreciated from approximately $0.78 US when Obama took office to approximately $1.02 US today.

Also recommend the Aussie (the Australian Dollar) which has appreciated from approximately $0.63 when Obama took office to approximately $1.05 US today.

Be careful.  The loonie was at like $1.05 in December 2007.  I sincerely doubt it will go much higher than it is at the moment.  While Canada and Australia are doing fairly well economically... they will not perform well if everybody else starts sinking.

[CARLHAYDEN]

As I noted some time ago, the stock market is NOT a good investment under current financial circumstances.

I went with the Loonie (the Canadian Dollar) which has appreciated from approximately $0.78 US when Obama took office to approximately $1.02 US today.

Also recommend the Aussie (the Australian Dollar) which has appreciated from approximately $0.63 when Obama took office to approximately $1.05 US today.

Be careful.  The loonie was at like $1.05 in December 2007.  I sincerely doubt it will go much higher than it is at the moment.  While Canada and Australia are doing fairly well economically... they will not perform well if everybody else starts sinking.

Right now, performance is relative.

When you look at the Euro, the American dollar looks relatively good.

However, when you compare the American dollar to the Australian and Canadian dollars, well...

Of course, the Swiss Franc has appreciated as well   (from approximately $0.86 when Obama took office to approximately $1.30 today).

To me, one of the major problems at this time with American stock valuation is that it is largely based on "technical" and emotional basis rather than fundamental analysis.

Also, I have found the Wilshire 5000 a better track than the DJI.

[opebo]

There is no reason for this.  Every news report that could possibly effect the markets happened before today.  People are just depressed and are taking it out on the economy.

Some Prozac would stimulate the financial sector.

Of course there is a reason for this - the debt deal as well as the continuing poor policy from Germany indicates that the only actors who can remove us from depression - the government of the USA and to a lesser extent the major Eurozone goveernemnts - refuse to do so and continue to follow deflationary neo-liberal austerity instead of Keynesian redistribution and reflation.

[Beet]

After reading several news reports, it seems that the 500 point drop in the Dow yesterday was the result of a speech by Italian PM Silvio Berlusconi the day before. Berlusconi, in contrast to all the other leaders of the crisis hit countries so far, refused to enact any austerity measures or reforms. As a result, the ECB finds it harder justify buying Italian bonds to the Bundesbank.

[Filuwaúrdjan]

I watched it, for reasons that are beyond me. He basically stood up and said that everything is fine.

[opebo]

After reading several news reports, it seems that the 500 point drop in the Dow yesterday was the result of a speech by Italian PM Silvio Berlusconi the day before. Berlusconi, in contrast to all the other leaders of the crisis hit countries so far, refused to enact any austerity measures or reforms. As a result, the ECB finds it harder justify buying Italian bonds to the Bundesbank.

Good for Burlesconi!  He may have several downsides, but at least he isn't cowed by the poison-the-patient nonsense.

[Beet]

After reading several news reports, it seems that the 500 point drop in the Dow yesterday was the result of a speech by Italian PM Silvio Berlusconi the day before. Berlusconi, in contrast to all the other leaders of the crisis hit countries so far, refused to enact any austerity measures or reforms. As a result, the ECB finds it harder justify buying Italian bonds to the Bundesbank.

Good for Burlesconi!  He may have several downsides, but at least he isn't cowed by the poison-the-patient nonsense.

That's true, but you have to remember the Brusselcrats are operating under flawed economic thinking that says you can't help any patient until they have been sufficiently bled.

[Foucaulf]

Was it about no austerity measures? Looks to me that it was him boasting that Italian banks are solvent, except he failed miserably at convincing anyone. More important seems to be EU President Barroso's straight talk acknowledging how bad the condition of the Eurozone is right now.

The markets have all reason to be jittery, but the selloff only reached escape velocity once Americans looked at the FTSE and winced.

(But the Italians seem to be making a big deal out of this...)

[Filuwaúrdjan]

Was it about no austerity measures? Looks to me that it was him boasting that Italian banks are solvent, except he failed miserably at convincing anyone.

That's right, yeah. He came across like a second-hand car salesman.

[opebo]

That's right, yeah. He came across like a second-hand car salesman.

Precisely - and thus a genius compared to neoliberal 'economists'.

[Beet]

Was it about no austerity measures?

But Brussels (and hence 'the markets' were looking for more). How many rounds have everyone else gone through? opebo makes a point, though. The old buffoon is forcing issue because he knows his country faces a liquidity crisis and political crisis, not inherent near term insolvency. As for the raids on S&P and Moody's... well what would you do if foreign multinationals were threatening to sink your economic sovereignty? Greece and Spain should have done that months ago. Just a pity that it takes a right-winger not to have the spine of a jellyfish.

[CARLHAYDEN]

As I noted some time ago, the stock market is NOT a good investment under current financial circumstances.

I went with the Loonie (the Canadian Dollar) which has appreciated from approximately $0.78 US when Obama took office to approximately $1.02 US today.

Also recommend the Aussie (the Australian Dollar) which has appreciated from approximately $0.63 when Obama took office to approximately $1.05 US today.

So, when did you actually put these trades on?  What day?  I can't wait to hear the answer.

Sorry, but I don't divulge specific information on my transactions.

If you look back (see you're new here) you will find that I had a long series of posts on this approximately a year ago.

[J. J.]

I doubt that that the markets will be happy Monday.  Der schwarze Tag?

[J. J.]

Me possibly being prophetic.

Down by .5%-1%.  The key is that there is talk of downgrading the US credit rating from AAA to AA+.  That is independent of the debt ceiling deal (or lack thereof).

We'll see how prophetic starting on Monday.

[redcommander]

How bad is the stock market expected to be on Monday? I can't see investors buying stock when we've been downgraded for the first time ever.

[minionofmidas]

How bad is the stock market expected to be on Monday? I can't see investors buying stock when we've been downgraded for the first time ever.

Anyone taking his money out of US treasury bonds because of that (not sure anybody is that touchy, but hey) would likely put it into something else, right?