WOW - The FED really stepped into it today.

Well, today was a bad day in the US stock market with a drop of over 200. Many wonder what caused this to occur, and funny to learn it was the FED itself that caused the drop.

"There is also concern about the possibility of a breakout of inflation, although current inflation risk is not considered unmanageable, and of an unsustainable bubble in equity and fixed-income markets given current prices


Uncertainty exists about how markets will reestablish normal valuations when the Fed withdraws from the market. It will likely be difficult to unwind policy accommodation, and the end of monetary easing may be painful for consumers and businesses. Given the Fed’s balance sheet increase of approximately $2.5 trillion since 2008, the Fed may now be perceived as integral to the housing finance system.

federalreserve.gov...


I think the FED will learn that they have little or no plan to get out of the market. They created this bubble and we are watching it break.

reply to post by MidnightTide


And that's all I have to say about that. "Forest Gump"

fed up yet?

Not to mention the continuation downturn in the Japanese markets and the sighting of the Hindenburg Omen (which is a technical analysis pattern that is said to portend a stock market crash)

Can you elaborate on the Hindenburg Omen?
Sounds ominous like the market will go down in flames......
The balances of the system have been so far skewed i doubt that well get away without much discomfort.
Though the systen has been crashing regularly for a few years....
The machinations of the big money has kept it stumbling along though....while the real wealth of the people is stripped from them stealthily.
I always say, if you dont realise the severity of the cataracts ahead, you simply cannot add and subtract.....

I guess there is only one thing to do...
(•_•)

( •_•)>⌐■-■

(⌐■_■)

Sit back and watch it burn.

reply to post by stirling


It is essentially four factors / conditions that occur in the same day that predict a stock market crash. These criteria deal with averages of the stock market within a 52 week time period.

Historically, it has been somewhat accurate:

The probability of a move greater than 5% to the downside after a confirmed Hindenburg Omen was 77% (within 40 days of the event taking place) Panic sellout is at 41% while a crash is at 24%. Of the previous 25 confirmed signals only two (8%) have failed to predict at least mild (2.0% to 4.9%) declines.

You can read up it here:

en.wikipedia.org...

OKey dokey, i get the picture and understand the parameters somewhat...
We dont nessessary expe immediate declines on monday morning then i take it...the event may take up to 44 days to mature...?
This would be a good opportunity to get some physical metal then to hedge the adjustment?

reply to post by stirling


Well to me the FED's announcement with the Omen in combination may result in some serious corrections in the market, also you should note the 10 US Bond jumped to about 2%. If that keeps on going up then the US is in serious trouble.

(If Japanese bonds reach that high, it would destroy their economy as in all their money would simply be paying for the interest)