I just said he saved the day, last I saw it was down only 45 points. Tomorrow is another day.
DOW Down 450 Points On The Open
by freydi 32 Replies latest social current
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Warlock
Buy on the re-test.
Warlock
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5go
I just said he saved the day, last I saw it was down only 45 points. Tomorrow is another day.
Sorry, I have just seen this coming for a while we are in for a huge market correction.
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BurnTheShips
What are you talking about he just devalued the dollar further! Which is not what the foreign markets want at all. It will most likely lead to them falling more in after hours.
Global markets were embroiled in a bloodbath yesterday. I was off because markets here in the US are closed and I needed the break. I didn't catch up until this AM. Foreign markets are basically begging for the Fed and the US gov't to stabilize the current situation. The markets are COUPLED. One falls and they all do, especially the world's largest. The Fed cut was used as a confidence building measure. It is just jaw-jaw, since cuts don't work through the system for about 6 months. There has been a massive infusion of liquidity to stave off the freezing of the credit markets, I think to the tune of 70 Billion. I have never heard of the Fed acting like this before a market open. Expect another cut at the scheduled next Monday. This ain't over yet by a damned sight. The Fed is like a 19-year-old army conscript right now. One who's never fired a shot in anger and is suddenly dropped behind enemy lines with a machine gun. He is trembling in fear but is tightly gripping his trusty gun with sweaty palms, secure in his ability to destroy whatever enemy he comes across.The problem is that he fires off a half of his magazine in panic every time he hears a noise, including the wind in the leaves.Pretty soon he's going to stumble right into an enemy unit and pull the trigger, only to hear the horrible click that indicates he is out of ammunition. Anyone who's watched a war movie knows what comes next.I personally expect a deflation to take place later this year. Cash will be king.
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WTWizard
With all the excess regulations in the governments preventing us from moving forward, the dollar being held up with paper, hyperinflation imminent (similar to what happened in Europe in the 1920s), wages stagnant, and the Fed usurping our income, the fair value for the Dow would be zero, the S&P zero, and the Nasdaq zero. Additionally, the Watchtower Society still exists and they could sue anyone at any time for not becoming and remaining a witless.
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BurnTheShips
hyperinflation imminent
That is a possibility, but with a global recession we might see a deflationary environment. Demand destruction. Deflation is even worse than hyperinflation. The poweres that be will probalby try to counter the possibility with a massive infusion of "money". We are already in a deflationary environment in some respects, just look at asset classes such as real estate and stock shares. It is a crap shoot, we will see what happens.
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5go
I personally expect a deflation to take place later this year. Cash will be king.
Not likely revaluation is more likely. Where the fed just says 100 dollars is now 1 dollar. It happened in Mexico when this happened to them.
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BurnTheShips
It happened in Mexico when this happened to them.
Mexico does not have the global reserve currency. US does. Whole 'nother ballgame.
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BurnTheShips
The more likely outcome is that the major currencies will devalue in lockstep. Here is the loonie as an example. Global markets are already repricing. This is much bigger than the US.
Look closely at that list. There is not an inflationary thing in it. Think the Fed can stop this? Think again.
http://globaleconomicanalysis.blogspot.com/2008/01/global-bloodbath.html
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5go
Mexico does not have the global reserve currency. US does. Whole 'nother ballgame.
Mexico did it do to pressure from foreign investors.