Wall Street on track for biggest December decline since the Great Depression

I noticed a few threads mentioning that 2019 there will be the major crash.

I found it amusing that they are actually using the the term "Great Depression"

Reminiscent of the MSM smashing the housing sector over the last 8 mths here in Australia; trying to make it more affordable. The Govts reluctance to raise rates quickly and a whole generation of peeps resigning themselves to never being able to afford a house thanks to tightening of lending criteria by financiers.

Now that the "Depression" word is loose in the wild, I guess its happening sooner than later in 2019.



www.news.com.au... b5fd2345039f3e975582ea2c891bb

On Wall Street, the Dow Jones Industrial Average fell 351.98 points, or 1.49 per cent, to 23,323.66, the S&P 500 lost 39.2 points, or 1.54 per cent, to 2,506.96 and the Nasdaq Composite dropped 147.08 points, or 2.17 per cent, to 6,636.83.

US stocks are on pace for their biggest December decline since 1931, the depths of the Great Depression.

Fed Chair Jerome Powell’s remarks added to the selling pressure in US stocks when he said the pace of the balance sheet reduction is on a preset course and adjusting the pace of the balance sheet reduction is not an option at this time.

The US central bank’s rate hike will likely dampen investor appetite for riskier assets throughout the globe, said Jorge Mariscal, emerging markets chief investment officer at UBS Global Wealth Management.

a reply to: TheConstruKctionofLight

From the same link. hmm

FED LIFTS RATES FOR FOURTH TIME THIS YEAR — Associated Press The Federal Reserve has raised its key interest rate for the fourth time this year to reflect the US economy’s continued strength but signalled that it expects to slow its rate hikes next year.

Wednesday’s quarter-point increase, to a range of 2.25 per cent to 2.5 per cent, lifted the Fed’s benchmark rate to its highest point since 2008. It will mean higher borrowing costs for many consumers and businesses.

has led the Fed to consider slowing its rate hikes in 2019 to avoid weakening the economy too much.

It’s now likely to suit its rate policy to the latest economic data — to become more flexible or, in Fed parlance, “data- dependent”.

The Fed has so far managed to telegraph its actions weeks in advance to prepare the financial markets for any shift. But now, the risks of a surprise could rise.

Next year, Powell will begin holding a news conference after each of the Fed’s eight meetings each year, rather than only quarterly. This will allow him to explain any abrupt policy shifts. But it also raises the risk that the Fed will jolt financial markets by catching them off guard.

a reply to: TheConstruKctionofLight

Now that the "Depression" word is loose in the wild, I guess its happening sooner than later in 2019.

Ah that word Depression, so an Depression or Finical Crisis in America always seems to happen whenever a Republican administrator is in the white house? just so the Liberals can blame everything on the conservatives?

Any players would have to have been total donks not to have seen this coming a mile away.

Trickle down never works...WS don't play that game!

originally posted by: olaru12
Any players would have to have been total round heads not to have seen this coming a mile away.

Trickle down never works...

Has nothing to do with trickle down. The "players" are backing down because the Federal Reserve bank is raising the interest rates.

originally posted by: seeker1963

originally posted by: olaru12
Any players would have to have been total round heads not to have seen this coming a mile away.

Trickle down never works...

Has nothing to do with trickle down. The "players" are backing down because the Federal Reserve bank is raising the interest rates.

All these glorious tax cuts were supposed to prevent tanked economy issues, though. Because trickle-down.

Guess the snake oil really isn't a cure-all, huh?

Interesting that the Keyne system changes gears when an actual capitalist is in control. Seriously, what is wrong with people? Why cant they enjoy success outside of their university brain washing.

ANyway, I have lost all of about 300 bucks since around September. Get back with me when my retirement is halved.

Since the election, the positivity surrounding the economy has tanked. That's not a coincidence nor is it something we haven't seen in the past.

originally posted by: Fools
ANyway, I have lost all of about 300 bucks since around September. Get back with me when my retirement is halved.

So another $122, more or less, ya?

a reply to: seeker1963

Odd that it doesn't seem that people are bailing on stocks in favor of bonds though.
www.marketwatch.com...


I think it has to do more with global stuff than the 0.25% increase by the Fed.

The Fed is taking the steam out of the markets with the rate hikes.... the cost of credit cards and other borrowing is increasing.

The big problem tough is that the Feds kind of covered for Obama during his terms by not raising rates. If they raise them too fast, it could cause a collapse. The conspiracy theorist in me thinks that is what they are trying to do to get Trump out of office. On the other hand, they need to normalize rates, so they can cut them again when things slow down.

They kind of painted themselves into a corner by keeping them too low for so long. The economy and markets got used to the cheap money and it inflated all kinds of assets, so now when they try to raise the rates it will deflate those bubbles.

If you recall, right before the housing market crashed in 2008, the Fed hiked rates until markets imploded. Then they cut rates and kept it at zero basically till end of Obama's term... now hiking again.

a reply to: Phage

They actually have... Yields have been falling quite a bit on the 10 year over the past 1.5 month. Today not so much.

They say that you can tell when an economic collapse is on the horizon — by two categories. A decline in real estate sales and pleasure sales.

In the 2008 collapse, I was a Realtor. I felt the decline in August of 2006. It continued all the way to 2013.

Today, I own a pleasure sales company. I can attest to you, that there is no imminent decline in the near future.

These things take years to play out. Unless there is a catastrophic event to escalate the issue.

a reply to: KKLOCO

O8 was because of deregulation, hedge funds and bogus derivatives...and nothing has been done to fix it.

trickle down won't...

originally posted by: KKLOCO
They say that you can tell when an economic collapse is on the horizon — by two categories. A decline in real estate sales and pleasure sales.

In the 2008 collapse, I was a Realtor. I felt the decline in August of 2006. It continued all the way to 2013.

Today, I own a pleasure sales company. I can attest to you, that there is no imminent decline in the near future.

These things take years to play out. Unless there is a catastrophic event to escalate the issue.

Exactly.

In other news, Christmas retail sales are up 18% from last year so far....

Doesn't exactly look like an economic downturn to me, if consumer confidence is that high...

Funny how the stock market going lower has people spooked... I can't wait for the next big downturn.

Last time that happened, I bought a lot of Ford stock at I think $2.20 and sold for a little over $15.

Been pretty happy with Palladium since 2011, but Ford gets back to 3 again I'm in...

originally posted by: olaru12
a reply to: KKLOCO

O8 was because of deregulation, hedge funds and bogus derivatives...and nothing has been done to fix it.

trickle down won't...

08 was because of Democratic policies.

Fixed that for you...

a reply to: TheConstruKctionofLight

Tip For Discerning Consumers: BUY!

originally posted by: Phage
a reply to: seeker1963

Odd that it doesn't seem that people are bailing on stocks in favor of bonds though.
www.marketwatch.com...


I think it has to do more with global stuff than the 0.25% increase by the Fed.

The worst came when Trump announced he was pulling out of Syria.

a reply to: Edumakated

the cost of credit cards and other borrowing is increasing.

CC rates are already 26%. Can they go to 30% and stay in business? The only sane way to use a cc is to pay it off in full every month.

Good.

Not good because I think the well connected and wealthy will lose anything, they own the physical assets now so it doesn't really matter to them. Good because if more people wake up to the greatest wealth transfer system from the ignorant to the unscrupulous, we can maybe do something about this finally.

There are also articles out there stating the fed has not choice but to raise interest rates, because the defined benefit plans are starting to implode with the current rates.

But again, not to worry good people of Illinois and other great centers of fiscal responsibility, the rest of the USA that was responsible and didn't overspend/overpromise will bail you out. Probably at gun point.