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Stocks Off Sharply as Market Upheaval Grows

nytimes.com

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Re: Stocks Off Sharply as Market Upheaval Grows

#111

Post by photosinensis »

jebblue wrote: post #72

I wonder if any of this could be related to recent tensions in Korea? http://www.cnn.com/2015/08/21/asia/koreas-tensions/

No. This is mostly about a bubble in China popping. Potemkin buildings have been a thing there for a very long time due to a series of perverse effects of policies by the Chinese government.

The Korea business is pretty much business as usual there.

The good news for the US is that we're a Chinese consumer, and they're not a major customer for our goods. Additionally, they're a competing consumer for resources. Basically, this means that the prices for American imports will drop, making the USD stronger internationally and encouraging international investment in the US economy.

The one thing to worry about is that the drop in import prices will likely cause a drop in the prices of domestic goods.

Re: Stocks Off Sharply as Market Upheaval Grows

#112

Post by jayess »

roymurdock wrote: post #56
dataker wrote: post #14

I'm assuming the Fed will not raise interest rates now.

I'm struggling to think of what the Fed can even do in this situation. I guess they can either 1) dig themselves deeper into a hole and issue another round of QE to inject liquidity into the markets or 2) do absolutely nothing. Though they are probably loathe to do nothing as then it would seem like they don't have a solution. Whatever happens, it will be an interesting/exciting time in non-traditional monetary polic…

About all they have left is more QE. My guess is that the next step in this bubble they've blown (along with the rest of the world's central banks) is massive deflation.

Re: Stocks Off Sharply as Market Upheaval Grows

#113

Post by fixermark »

coldtea wrote: post #96
cryoshon wrote: post #76

Earlier quoted context omitted.

Staggeringly unequal benefits distribution makes for an unhealthy economy. We don't describe the economy of Mexico or Brazil to be healthy even when they are at high employment and growing GDP mostly because the burgeoning economy doesn't produce a similar ripple in their societies.

> Basket case economies are reflected in bond yields. The US pays little to borrow money because it is a safe haven. Or because it uses its huge military might to make sure it is so.

The market doesn't distinguish the root cause of safe-havenism. There's a reason people think military-industrial is a sensible use of financial resources.

Re: Stocks Off Sharply as Market Upheaval Grows

#115

Post by knowaveragejoe »

roymurdock wrote: post #56
dataker wrote: post #14

I'm assuming the Fed will not raise interest rates now.

I'm struggling to think of what the Fed can even do in this situation. I guess they can either 1) dig themselves deeper into a hole and issue another round of QE to inject liquidity into the markets or 2) do absolutely nothing. Though they are probably loathe to do nothing as then it would seem like they don't have a solution. Whatever happens, it will be an interesting/exciting time in non-traditional monetary polic…

I think they can safely do nothing and go along with the correction narrative, whether or not that's true.

Re: Stocks Off Sharply as Market Upheaval Grows

#116

Post by photosinensis »

andrelaszlo wrote: post #32
cryoshon wrote: post #19

It's hard for me to tell whether this is just a "correction" (massive deflation after exuberance) or an actual meltdown. I had predicted the actual meltdown for September of 2015, but I guess this is pretty close. I wonder how this will affect my life, if at all. "The New York Stock Exchange said it will halt trading for 15 minutes if the Standard & Poor’s 500 Index drops 7 percent." [0] How is it fair that the marke…

"I had predicted the actual meltdown for September of 2015, but I guess this is pretty close. I wonder how this will affect my life, if at all." If you predicted it, then it should at least make you rich? :)

Yeah, it should. He should have known to short-sell pretty much everything if he really predicted it. I remind everybody that it takes no money to short sell. If you really think everything is gonna tank, do it. Put your skin in the game.

Re: Stocks Off Sharply as Market Upheaval Grows

#117

Post by photosinensis »

jebblue wrote: post #89
jebblue wrote: post #52

Earlier quoted context omitted.

I'm not rich enough to be an investor but I agree, some kind of cool down system should be required.

Why was this down voted?

Because it's ignorant. There are cool down systems in place if the stock market swings too wildly in a short period of time.

Re: Stocks Off Sharply as Market Upheaval Grows

#118

Post by dataminer »

dataker wrote: post #14

I'm assuming the Fed will not raise interest rates now.

No one is going to raise interest rate right now, even if interest rate is raised in future it will be very minimal. This is the new normal, there is hardly any inflation and price of important commodities are falling off the cliff.

Re: Stocks Off Sharply as Market Upheaval Grows

#119

Post by branchless »

cryoshon wrote: post #94
branchless wrote: post #42

Earlier quoted context omitted.

Sorry but how do you know enough to "predict" a September 2015 meltdown and then um and ah about whether this might be a correction? It's 6 days short of September and you are not sure? Pardon my skepticism.

Hey man, I have an amateur's knowledge of the market, but I keep up with geopolitics. I didn't make this call based off of technical knowledge, more of an unscientific gut feeling based off a ton of factors I probably can't even name in detail.

Is this satire? Not sure. If it's genuine why post about your gut feelings where you have no skin in the game and can make calls for a crash over and over? Stopped clock and all that.
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