2011 Global Stock Market Collapse Watch

Originally posted by gorgi
reply to post by majesticgent

 

And you chart proves that the rate are have highs and lows and have been lower for a few years now. Again nothing new.

Tell me another time frame where the interest rate is around 0% or more outside of the past few years on the chart? Do you know what low/zero percent interest rates indicate? At no other point since 1955 have interest rates ever been 0% not yet for possible 3 years or more.

reply to post by majesticgent


Actually, yeah what do low interest rates indicate?

reply to post by majesticgent


Its also been high for a couple of years and now its been low for a couple of years. Lower interest rates is what we need right now. Higher rates would be bad right now.
The fed is run by some very intelligent people. Most people here hate the fed but thats because they lack the understanding of the fed. Its kinda sad.

Originally posted by mossme89
reply to post by majesticgent

 

Actually, yeah what do low interest rates indicate?

he weakening job market — propelled by steep declines in construction and manufacturing payrolls — coupled with the housing market slump and the associated subprime mortgage crisis and credit crunch, suggests recessionary conditions might be lurking, which is spurring the Fed to take action to ensure continued economic growth.

Keep in mind, the fed funds rate is a key short-term interest rate that impacts consumer loans. Ultimately, by lowering the rate, the Fed would be making it less expensive for consumers to borrow money, which could, in turn, encourage continued spending, thereby stimulating the economy.

Source: abcnews.go.com...

The interest rate is this low because or economy is at a halt. They are keeping interest rates low in order to increase spending, stimulate the economy, and get things moving. Can't do that with high interest rates.

The opposite of that is to raise the interest rate to prevent inflation.

Interest rates control the flow of money in the economy. High interest rates curb inflation, but also slow down the economy. Low interest rates stimulate the economy, but could lead to inflation. Therefore, you need to know not only whether rates are increasing or decreasing, but what other economic indicators are saying.

Source: useconomy.about.com...

reply to post by gorgi


Well yeah the economy hasn't ever been to a point, in the past, where the FED has deemed it necessary to stimulate it with 0% interest rates, especially for a long period of time; so these intelligent people in which you speak realize that we are in some uncharted times & territory.

reply to post by gorgi


Oh we understand the game the FED is playing.....and well, lets just say if they are considered the "experts" - I will take the amateur opinion.

The recent stock market roller coaster ride has demonstrated the emotional response of investors to the U.S. S&P downgrade, followed by the Fed announcement. It is volatile right now because people are uncertain where to put their money. The stability of the low interest rates may hopefully give businesses some confidence. But then again, can we really trust the Fed to a 2-year freeze on the interest rates? Only time will tell if the market will stabilize when quarterly earnings reports are released. Lower oil prices may help.

For the US economy I think itr´s imperative to lower the costs of its economic input. That is energy and foodstuffs and raw materials. This is the world´s largest economic unit, a paragon of technology, all markets follow this behemoth as you can see. You must beat down the economic input costs of this engine at this point, I can´t reitaerate this enough. Don´t be diverted by large caps in the stock market, the bulk of the American economy is about small business. That´s what really creates jobs.

It´s a consumption based economy and it feeds those that supply that consumption. That is the way things are. To try to keep this unbalanced financial system we see crumbling we must always remember the cost of economic input.

the +600 point drop in the DOW 2 yesterday's ago... was the peoples knowledge that the 'game' is rigged and the game is Up...

the +400 point bounce back today was the players/gamers in the Markets having decided that there is still plenty of play left in the system to make profits & scam or otherwise game the less affluent & less adept investors that still have positions in the stock markets.


I see the markets going back to the gut response model of Thursday when it fell +600
and by the end of the year having the DOW closer to 8,000 than to the previous highs of 29 April 2011...

this temporary +400 point recovery is just a reflex by the users & abusers, (AKA con men/swindlers/ marginally honest stock traders) that don't want to restyle their lives---and relearn an honest source of earnings...


sorry if it sounds like i have a bias, or stereotytpe... but the 'money-changers' are evil since early historical records were kept

reply to post by St Udio


So when will the DOW hit 10,000 so I can start buying yummy DOW stocks or index funds?

Originally posted by TheRemedial

I am leaning towards DOW in the red 200-300 by end bell. The volatility is absolutely insane on the market, it's just crazy I can't make heads or tails of this at all...

This is a day traders wet dream (I did it for years). High volatility, high volumes, what's not to like? Maybe I should crank up my two trading station PCs again...

When you have an economic system t- that is 70% based on consumption you obviously would want to stimulate creation of more consumers.

I used to think that Americans paid abnormally low price for gas but later I realized how staggering distances they travel.l. Which creates business and jobs along the way.

Very much off this iimportant topic but I would ask you to help me if you can find the time.

I have gotten several private emails, no doubt on account of my brilliant analysis of the current financial situation but how do I see those few posts that I have yet to see praising me ???

reply to post by majesticgent


The documentary 'Collapse' has a real interesting look into the global economies meltdown from the perspective of Michael Ruppert. Great documentary and worth a look if this topic gets you interested.

Hmm, I believe whatever the fed said was just some temp solution I believe whatever happens on the Asian Markets in a day or two it will probably just tank, I never really read what they said but I honestly think it will help for a few days, but then start falling again.

actually, I think they have themselves in a corner now, there's still alot of adjustable rate mortgages out there and the housing market isn't too sound. they hike up the rates, two things are gonna happen, first, alot of those adjustable rate mortgages are set to adjust soon, and they would adjust higher, second, the values of the homes would drop even lower....

and right now, the house next to ours, which is just about an exact copy of ours by the pictures I've seen of it, is up for sell at over half of what we bought ours at, and we really didn't pay that high of a price for ours.....and there are no takers for it!!

so, well, raise the interest rates, and the housing market, along with alot of other debt collaspes...
don't raise it and kill the dollar...
how would you like your poison???

the article that I read as far as what the fed said today, gave me the impression that there might be a little more coming like a QE3, or is it 4?? maybe that is what the stocks are reacting to, more money coming their way to gamble and lose in the markets...

These two stories on CNBC outline where the market is headed. The volatility is just a rollercoaster ride but the fundamentals will soon dictate market movements imo, and those fundamentals are fractured and broken in many way and thus continue to deteriorate.

U.S. Is 'Right Now in a Recession': Dohmen Capital Research


The Dow Could Fall to 9700 in the Long Term: Charts

Take a look at the crash in 1987, look familiar?

There are Rumours that France could lose its AAA Rating as soon as this Week...if that happens,the EU is finished.

Just look at the French CDS (found with a quick Google Search: "worry France AAA" )

reply to post by Shenon

if that happens,the EU is finished.

Isn't EU already finished? i am looking forward to its own destruction, i see no reason why Serbia, Bosnia or the Balkan countries should be forced to join the falling empire created by america and britian.