BLACK FRIDAY? - 05 Aug 2011

reply to post by JakiusFogg

well, i am quite optimistic, if you look into the developement the last decades.
values like know-how, education, experiences have constantly increased.
ok, there is a bit of shaking because of the globalisation of markets. other countries like brazil and china are not sleeping, they are improving their abilities.
it has become more challenging to stay on top of the economy.
but again, new good products are made available and the quality of products is getting better and better. it will be shaky but improvment is happening constantly.
if you look at things onesided you miss out the positive developements and adjustments that are made right now.

Originally posted by iNkGeEk
reply to post by Chadwickus

 

is that Billion or Million?

you say billion , i say bullion

you say million, i say mullion.

potato , patato, tumato, tomato

reply to post by woodwardjnr


From sitting on top of the fence I watch myself arguing both sides..

It has the feel of being manufactured... this is what my gut says, but looking at the way the markets are behaving it also seems a natural conclusion to the mess we are in..

I doubt we will ever get to the bottom of it really... but I do have to wonder as I feel like a sheep being led to the slaughter.

reply to post by icepack


I can see what you are saying. A lot of the noise we are hearing are the bleating of the developed world people lamenting their countries demise. This i can understand. I moved from the UK to Mexico. and yes, just on a normal every day level it is a shocker. but when you see you "comfy" life slipping away and getting more difficult. I am reminded of a report I read in the economist about Spanish youth, the overwhelming sentiment was this world we have and the conditions economically are not what we were promised. So while the conditions might not be affecting developing nations so much, I can tell you on a street level they are starting to bite.

Where a lettuce in a street market now costs $3.20!! its unheard of.

So from an investment point of view there may be opportunities out there. however from an average Joe position, who cares investment opportunity, when you can see you cost of living spiraling down, you overheads going up, your jobs leaving the country, everything is getting more expensive, you salary is frozen, and you can;t do what you used to be able to do, or what you were promised. You can't buy a house regardless of whether prices are coming down. and keep getting taxed to the hilt on everything. While the banks that caused it all (in part) get free handouts without a fixed repayment schedule??? INvestment opportunity is not high on the list of priorities.

European leaders returned to the hunt for solutions to the debt crisis, helping Italy and Spain gain a a respite from the market turbulence after the resumption of the European Central Bank’s bond-buying program. With global stock markets sinking for an eighth day, the European Commission earned a rebuke from Germany after calling for another reinforcement of the European Financial Stability Facility, the 440 billion-euro ($623 billion) rescue fund for distressed euro-area states.

Bloomberg

Not entirely unexpected.

Originally posted by JakiusFogg

Australia's central bank has cut its forecast for growth due to a "slower-than-expected" recovery from floods earlier this year. The Reserve Bank of Australia (RBA) said it expected growth to be 3.25% in 2011, down from its earlier projection of 4.25%.

BBC News - Australia

Yeah exactly.....this is what I just don't understand. It was only a few days ago (yes days) that Australia was looking at an interest rate rise due to a potential over heating of the economy!!?? WHAT DATA ARE THESE MORONS LOOKING AT?? I mean come on! The debt problem has been here since the GFC so....hey...this is not even news!

since Joe & Jane 6-pack are not in the Markets
and the million or more On-Line broker accounts that Individuals make Trades with for $7 or less
are less than 2% of market volume....

how is it that the Billion Dollar Bonus, brokers & managers allowed a 512 point drop to occur?


there is something like 90% of the daily Market is generated by HFT (high frequency trading)
the other ~10% of Market volume is under the control of the Presidents Group, who manipulate the Markets and commodities like gold and silver with naked shorts contimually....


so, to my view, the drop was intentionally engineered, just as the Markets have been manipulated ever sine QE1 and Stimulus 1&2...and through QE2 to the present to reflect a resurgent economy & a healthy & Liquid Business/Banking/Corporation landscape of 'profits'...


is this market 'correction' designed to bring forth the need for a QE3 ?
or for some other sinister 'control' mechanism .....

Like bankrupting the HFT traders who are not part of the cartel of TBTF Bankers/Presidents Group/ Federal Reserve?

Originally posted by thoughtsfull
reply to post by woodwardjnr

 

From sitting on top of the fence I watch myself arguing both sides..

It has the feel of being manufactured... this is what my gut says, but looking at the way the markets are behaving it also seems a natural conclusion to the mess we are in..

I doubt we will ever get to the bottom of it really... but I do have to wonder as I feel like a sheep being led to the slaughter.

Unfortunately your feelings are spot on....this has been manufactured. This is the way it works....create a massive problem, then offer a solution.

Here's a handy comparison of stock market plunges:

[atsimg]http://files.abovetopsecret.com/images/member/7aaf9209a5de.jpg[/atsimg]

reply to post by JakiusFogg

prices rise, because limited resources have to be shared by more people.
for example, having a washing machine. ten years ago 10% of world population had one, today 25% has one. this will not stop untill everyone on this planet has got a washing machine.
the wealth of world population is always rising, the resources are limited.
birth control, education are necessary investments that will give profit on the long run, but no short term gambling like profit.
you pay more for your salad, but you will live in peace not war. wealth and security go hand in hand and have their price.
now what decesion ? living rich with low fuel and food prices but with exploitation of labor around the world and therefor social unrests, big security (military) and wars.
or living decent in peace, but no highs like big vacation, fancy car etc.

reply to post by icepack


Hmmm sounds like a selling point for population control. I am not sure though that I agree on a fundamental level that you live "in peace" and prosperity on a personal level, but that comes at a price, because of our inherently inflationary monetary system, where the once illegal practice of usury is not common and accepted.

So by that reckoning we can have peace, and wealth, but rampant economic speculation and inflation on the national level leading to unrest and dissatisfaction on the personal level which in urn leads back to the alternate states of unrest, war but financial security on a national level!??

No wonder there is so much war going around!

You sure you're not George Bernard Shaw reincarnated???

reply to post by Hithe Merinos


Looks like Deja F.U. all over again!

I just look at that graphic again and realized.

The DJ, S&P and FTSE have not yet finished trading on the 5th (today)

The Nikkei has. if that is to be used as a temp sensor, then comparatively it had a bigger fall this year than in 2008!!!!

We only have to wait for the others to finish!!

reply to post by JakiusFogg


As one who relies on the yen, due to where I live, I can honestly say that there's nothing weakening the yen rate yet. The yen strengthened against the dollar yet again over the past couple of weeks, making every 100 yen worth about $1.25 at the banks. Now, it's about 100 yen to about $1.22, which is what it has been for months. Frankly, seeing the yen rate drop is not cause for me to personally panic....quite the opposite. I think Americans living in Japan will gladly welcome seeing the yen rate come down.

reply to post by JakiusFogg

more precise: birth control through education not sterilisation or other violating actions.
i am no christian or socialist, but its simply logic: you go for more posessions you have to protect it with fences and security. you live more decent, less fears of loosing your posessions, less security and control necessary.
its like: the more you got the more envy of others you have to cope with.
the problem is, everybody cannot have everything. impossible.

and no i am not a reincarnation. had to google this guy you mentioned.
btw: what kind of business do you have ?

reply to post by Gseven

Consider than the Japanese economy is already reeling from the disaster earlier in the year, and that a rising Yen makes Exports to other countries more expensive. Thusly affecting the Japanese economy in a negative way. i.e. exports will go down as product there become even more expensive. Not only this but as commodities are priced in dollars. a strong yen (or weak dollar) means that it now costs more yen per dollar to buy the materials need to produce the products which you export.which in turn costs even more do to rising prices, which in turn makes it less likely that people will buy.

Added to that, that people currently do not have the appetite to buy luxury goods, the new car or the TV as much as they did, falling demand, could offset the pricing, but that is only temporary and puts margins and jobs at risk in Japan.

And that is even after the production shutdowns affecting the production and aftermarket parts supply for Japanese products

It's all a bit sticky!

reply to post by icepack


I help technically protect aviation leased assets in transition when the contract is finished, or cannot be completed. strangely the "down turn" has been good for us. Not so much the companies we work for, but for us contractors the spate of repos have kept us busy.

BANK OF AMERICA

Bank of America Corp. (BAC), the lender that announced a $3 billion settlement with Fannie Mae and Freddie Mac this year, told investors that elevated claims from the firms may cause more costs than previously forecast.

Bloomberg

reply to post by JakiusFogg

strangely the "down turn" has been good for us

yeah, life is like a lottery.

Sinking Germany

German industrial production unexpectedly decreased in June as construction activity waned and investment goods output dropped. Production declined 1.1 percent from May, when it rose a revised 0.9 percent, the Economy Ministry in Berlin said today. Economists had forecast a gain of 0.1 percent, the median of 26 estimates in a Bloomberg News survey showed. In the year, output rose 6.7 percent when adjusted for working days.

Bloomberg

reply to post by JakiusFogg


RBS - Runny Bum Syndrome