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If that’s the only “Bazooka” China is packing, we’re in even bigger trouble than I thought! I say that because the furious rally Chinese policymakers managed to ignite earlier completely fell apart into the close.
The Dow Jones Industrial Average not only surrendered a 350+ point gain, it plunged at the end of the day, finishing down by 205 points. All the other major averages also closed in the red.
Things looked much better in the early morning hours. That’s because after another 7.6% wipeout that sent the benchmark Shanghai Composite Index cascading through the 3,000 level, the People’s Bank of China took several steps. They’re exactly the kinds of financial “Bazookas” that then-Treasury Secretary Hank Paulson and Federal Reserve Chairman Ben Bernanke tried when our markets melted down in 2007-2009.
In China’s case, the PBOC …
Cut the country’s equivalent of our benchmark federal funds rate by 25 basis points (a quarter of a percentage point) to 4.6%. That was the fifth reduction since November.
Lowered its one-year deposit rate by 25 basis points to 1.75%.
Slashed the required reserve ratio for Chinese banks by 50 basis points. The RRR move is designed to free up more money for lending to the real economy, and to offset the impact of capital flight on domestic liquidity.
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| China’s markets are the source of much uncertainty in the world today. |
China is making these moves because it’s in the midst of a massive economic and market crisis. The Financial Times reported yesterday that the country has shelled out more than $200 billion to support its stock market through share purchases and other measures. It has also spent another $200 billion to support its currency in the wake of the country’s landmark devaluation the other day.
China does have a massive pile of reserves – more than $3.6 trillion at the end of July. But it has been blowing through that money at a faster and faster rate to defend its markets.
Officials seem to have decided they can’t afford to spend it all on artificially propping up stocks anymore. That’s why the Chinese market has plunged 22% in just four days — wiping out $1.2 trillion in market capitalization in the process. Policymakers are now shifting to rate cuts and other measures that they believe will get them more bang for their buck … er … yuan.
So is it enough? Will the latest rate cut succeed where the previous four failed? Or is Asia still only, say, partly through the Asian meltdown, just like we were only partly through our own meltdown when Bear Stearns went under?
I wish I could say I was optimistic. But today’s disastrous failed rally is another bad sign, one that signals – that we have likely passed the peak of the central banker bubble. Indeed, my warning about getting more cautious than I’ve been in several years – issued a few weeks ago before the market collapsed — is proving right on target.
| “Will the latest rate cut succeed where the previous four failed?” |
If I’m right about the big picture, then the “Autopilot Market” that central bankers gave us is now morphing into something else. Something much more volatile, dangerous … or potentially very, very profitable if you know how to wisely use investments like leveraged and inverse ETFs and options. As a matter of fact, I helped subscribers in my Interest Rate Speculator service rack up multiple, triple-digit profits in yesterday’s roller coaster session. And I believe those kinds of opportunities are going to be coming fast and furious in the days and weeks ahead.
So what do you think? Is China “fixed” now? Or is this more like when Bear Stearns failed? As you probably remember, policymakers intervened to help merge the failing firm into JPMorgan Chase (JPM), sparking a rally in the short term. But then, markets gave it all back and then some later.
What can be done to stop the bleeding overseas and here in the U.S.? Anything? Or are markets finally overwhelming policymakers around the world? Use this link to add your thoughts at the Money and Markets website.
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In the wake of yesterday’s crazy market action, several of you weighed in on what is going on and what you expect to see happen next.
Reader Donnie S. said: “The Fed governors have all been too busy putting out fires in their wastebaskets to notice that the building is burning down around them, so don’t count on the Federal Reserve or foreign central banks to intervene to stop the bleeding. Most investors are suffering from ‘normalcy bias,’ which leads people to believe since something has never happened before in their lifetime, that it never will happen.
“Normalcy bias also leads people to interpret warnings and inaccurately reframe information in order to form and project an optimistic outcome, which leads investors to ignore serious situations against all evidence. In short, normalcy bias is a pain-killing drug which numbs a person to an impending crash like today and tomorrow and the next day.”
Reader Ivano added: “I am tired of the whiners. Mature savers are those who are suffering from the ‘welfare for the rich’ monetary policy of Greenspan and especially crafty Mr. Bernanke. They printed money out of thin air to support their evil, filthy-rich, parasitic Wall Street buddies.”
Reader Howard weighed in with this observation: “After encouraging their own investors into margin loans, the Chinese government is learning this as well: Real wealth is found in the gainful employment of productive assets.”
Finally, Reader Stu said: “So who was asleep at the switch when the Dow was down close to 1,100 points? Apparently no one. Alas, the plunge protection team (PPT) has about as much control over our stock market as the Chinese government does over theirs. God help us all.”
Thanks for the comments. I’ve been warning of increased volatility and rising risks all summer, and the action over the past few days certainly suggests those warnings were on target.
It appears that China has lost control of its markets and economy in this downturn, much like officials here lost control of U.S. markets and the U.S. economy in the 2007-2009 meltdown. That means we’re likely in for even more turmoil in the weeks and months ahead.
So where do you stand? Is this just the first of many large wipe outs? Or was this week “the bottom”? How are you modifying your investment strategies in light of all the volatility? Add your comments to the mix at the website as soon as you can.
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Losing money in a stock market rout is bad enough. Not being able to cut your losses because you can’t access your brokerage account to trade is even worse. But some online brokers reportedly had trouble yesterday due to a surge in activity. USA Today reported that customers of both TD Ameritrade and Scotttrade encountered glitches in yesterday’s manic session.
Amid all the macro market turmoil, there is actual corporate news out there worth mentioning. Electronics retailer Best Buy (BBY) reported adjusted, second-quarter profit of 49 cents a share, beating the average estimate of 34 cents. Same-store sales grew at a 3.8% rate, almost four times the 1% that analysts expected.
Meanwhile, amidst all the craziness yesterday, I didn’t get a chance to mention that utility Southern Co. (SO) said it would buy AGL Resources (GAS) for $66 per share. That sent shares of AGL up by more than 32% on a lousy day. Southern bought AGL to expand its natural gas infrastructure business, further diversifying its business beyond the providing of electricity.
Will Vice President Joe Biden make the Democratic field a little more crowded this election season? He’s apparently considering it, according to the Washington Post. Family issues are a primary determining factor, and we likely won’t get a decision for a few more weeks.
So did you have trouble executing trades yesterday (or did you even make any)? What do you think of the ongoing consolidation in the utility sector? Any other thoughts on the news of the day you’d like to share? Then hit up the website and let me hear from you.
Until next time,
Mike LarsonÂ
Mike Larson graduated from Boston University with a B.S. degree in Journalism and a B.A. degree in English in 1998, and went to work for Bankrate.com. There, he learned the mortgage and interest rates markets inside and out. Mike then joined Weiss Research in 2001. He is the editor of Safe Money Report. He is often quoted by the Washington Post, Reuters, Dow Jones Newswires, Orlando Sentinel, Palm Beach Post and Sun-Sentinel, and he has appeared on CNN, Bloomberg Television and CNBC.
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While the phrase, “pushing on a string” is usually just used for interest rate interventions by central banks, I believe the Plunge Protection Teams are doing the same thing all over the world… or are they just using tax payer money to prop up the markets so that the big investors can continue to have funds transferred to them with the help of central bankers on the way down as they did on the way up?
Anybody that thought they could turn Communist China into a Democracy if we traded with them was a moron…… Not only have they have taken MILLIONS of good paying Middle Class American Jobs, now they also have one of the fastest growing Military Budgets in the world…
Interestingly, Tom Clancy wrote a book over ten years ago called “The Bear and The Dragon”… While suppossedly Fiction, that book forecast what is currently happening and how it darn nearly the started World War lll
Every Liberal has a conservative inside him trying to break out. There is hope for you yet. Good post! Jim
A very disgruntled Scottrade person.At a critical time could not access my account at first. When I got in it was impossible to get a quote or execute a trade.Between that scenario and the “before the bell ” traders a guy like me has 0 chance.Pathetic system.
We remember how well the Fed did with it’s massive money printing. Keep the federal tinkerers out and let Mr. Market right itself. It will do better without the Federal Reserve’s interference.
the Scottrade website slowed to a crawl and did it again today. Not a place for active day traders. Its amazing that some think this market will continue to be so volatile that they are willing to pay 11% for 1 month calls on ETFs. Pretty hard to resist. Nice that the cretins at the Fed have no bullets left. I’ll bet they’ll try QE4 which will do as much nothing as the past 3. The Fed now has no choice to stand by and watch what happens or they could normalize rates which would counteract China by having the money flow accelerate here and force China’s hand.
Frebon, I like your idea of normalizing rates… Nothing better than having increased velocity of ‘value’ (dollars) flowing onshore to the U.S.
I am going to make an educated guess as to where the Dow will bottom out in the near term. I think that the Dow index will go down to 12,500+/- before the stock pricing is cheap enough for the ‘flea-market’ buyers to move in and buy up the distressed shares. If the governments and the central banks haven’t made the necessary corrections by then, the Dow will slide to about 9,300 at which time reform of the present banking system will be made mandatory.
Maybe a ‘bag the Dow’ pool can be started where the readers can enter their own guess-timates and who ever is the closest will win a free vacation to Naples, Italy or maybe Naples, Florida
Steven, I’m in at the 12,700 before government intervention and at 9,100 with some form of new-fangled Federal Government or Federal Reserve pressing or mandating banking system and new stock regulations.
Actually, I would prefer a vacation to Santiago, Chile.
One thing the current uncertainty in the markets shows, is that governments can do whatever they choose to try to control a free market, but the success of those actions depends on the degree to which members of the markets trust their governments. East or West, there doesn’t seem to be a lot of trust in governments these days.
Chuck, has any corrupt over-bloated out of control progressive criminal east or west government done anything to enhance the trust of the citizens…?
We need to have fewer central banks and more regional banks that represent more accurately their clients rather that the dictates of the government, the governments cronies, an a few very wealthy individuals.
What do you think of 100% short term US Treasury money markets as a safe cash equivalent? Following Martin’s advice from years ago, we have always kept some money in one or more of these funds but would feel safer knowing your current opinion. Thank you.
Jane,
Glad you brought this up. I don’t know if you remember the video question and answer discussion Mike and Dr Weiss had in 2007. They said that if you have a 100% Treasury MMF then if the banks close thier doors you could call the treasury and have a check mailed straight to you mailbox. I called American Century and Wells Fargo where both my father and grandfather have these 100% Treasury accounts and they told me this isnt possible. You have to call them and have them sell some of your treasuries in the market and have the custodian (Wells Fargo-American Century send the check. Well I guarantee the phone lines will be down during a crisis so this advice is useless. I sent them an e-mail about a month ago asking them to get me an answer but I never got a response. I guess the smartest thing is some spending cash under the matress is the only safe thing to do during a bank holiday which could last weeks.
T Rowe Price Web site, the one you do online trading was down all day yesterday and today. You had to call broker to make a trade. Was unable to make a trade. Lost $$$$.
Well, I can tell you that made somebody(s) happy with your $$$
Gee, has anyone noticed that real estate speculation is the cause of much of the economic collapses? 1880s it was California, 1920s it was Florida, 2008 it was US (yeah, all of the US) and now it is China’s oversold real estate market. When will we learn that it is never ‘different’ regardless of ‘when’ it is. I still say 12,500 short term low and 9,300 long term low if we don’t get our respective houses, governments and banks in order. The poor people are the ones who are suffering the most from these economic excesses.
It’s also (what’s left of) the middle class Steven.
Poor people don’t suffer that much because of entitlements. Rich people shouldn’t suffer because they can afford to lose substantially. Its the middle class or what’s left of it that suffers the most. Maybe this time people will get over political correctness and elect someone with the courage and brains to get us out of this mess. Don’t hold your breath because there’s no cure for stupid.
If you depend on a politician to get you out of this mess, you are going to wait a long, long, long time. Politicians got us into most of the mess in the first place.
Agreed Chuck, I had some hope with Trump, but that is waning with everyday as he once appeared as a non-political non-politically correct business man has slowly beginning to morph into a politician.
Can we win… I am afraid that this country will go through a dictatorship to a military regime and then some day back to a republic… History keeps repeating whether it’s the market cycles and economy cycles or the forms of government people tolerate.
But Doc, We have the ” son of a mailman” we can vote for! Jim
Why does the Media insist on referencing the DOW. This is nearly meaningless since the DOW is NOT the market. It only tracks 30 large cap stocks. Also, even dumber, they like to reference point changes. Point changes are even more meaningless since the market averages are at much higher point readings than any time in the past. Only percentage changes have any relevance! tommr
I was thinking about why our market is finally cycling now. Possibly, it does not have as much to do with China’s market falling. There are billions sitting on the sidelines waiting for the US market to finally cycle. The smart money is currently there. Our PPT has proved that they can prop up a very weak market. They have done it for years. So why are we cycling now? My theory is that China is cycling now and will be over by our election year, when we may have normally cycled. If we have billions on the sideline now, once China is in bull market territory, possibly a great deal of that money and European money would have gone to the then stronger Chineese market. By allowing the market to cycle now, all of that money (that would rather come to the US market anyway) will come into the US market. Had we waited to cycle, a great deal of the money would have most likely gone to China to go to work, possibly never to return to the US equity market. This is my theory. I have not heard or read it anywhere else, but it is the only thing that makes sense to me. Im not worried about this slide in the market at all. Older guys like me have seen this come and go several times in my life. The market will come roaring soon… and it WILL be the best buying opportunity of the rest of your life… if you have the guts.
Puts Puts Even More Puts. Calls on inverse etfs. Soon you will be able to buy oil for $25 to $30 a barrel. I am running out of Oil stocks to buy puts on. Which is the next oil company to go bankrupt? Buying puts on a $3.00 stock seems insane. It is a bet on bankruptcy. Oil service stocks still have a good price to buy puts on. When the E/P companies go bankrupt who will need oil service companies. Sure the majors will need HAL, but who will need the 10 rig outfits?
I have been a small time oil producer for forty years. Everything I see and hear in my industry supports what you say. The market seems to agree with you as well. I can tell you first hand we are really hurting. I can also tell you I see no relief in sight. Normally a plunging rig count would indicate price support ahead but that simply does not seem to be the case now. Production levels worldwide continue to rise. The market has been so badly distorted by the over investment of cheap QE money it may take years to rebalance. $20 to $25 a barrel is hardly out of the question. This will definitely get the children off the street. If you are looking for new things to short try automobiles or auto finance. I’m told 60 per cent of the loans are sub prime and there just as many people driving cars they can’t afford as there were people owning houses they couldn’t afford several years ago. Jim
Does anyone seriously think that all that fiat money from various countries sloshing around in financial institutions instead of being put to productive use would be without consequence? And with the minimal productive economic activity around the world, how will this debt created borrowing be repaid? With an ever larger welfare class receiving rather than producing, how can the system be supported? Finally, in view of all this, why have the last six days been unexpected?
Disaster,my foot,Im loving this,have not made so much $ for a long time,never thought a down market would be so good,hell,I dont want it to stop.Maybe just lucky.Did not listen to anyone,just read the charts,with tight stops.Back into UVXYand DUST,hope lady luck is still with me
Bought TNA March 9, 2009 $5.00 (Thank you President Obama for PIP and the FED for QE… :)…. Follow the trend line on the daily candlestick chart until that trend line was violate on July 17th at $93.00. Then switch to TZA at $9.16… Today’s close at $13.64… Simple Trend lines… Nothing fancy!… :)
foolish for China to “defend” the markets. They should save themselves a TRILLION dollars and let the market sink to where it will. Then at least investors will know that they are not paying inflated prices for “puffed up” equities and they will be more confident about buying back into he market.
So wide is the separation between the way men actually live and the way that they ought to live, that anyone who turns his attention from what is actually done to what should be done, studies his ruin rather than his preservation.
Machiavelli 1513
If you want bubbles, look at the housing market in the Bay Area in California. The last collapse houses that had a hard time selling at 100-120K range are being bid up to the 460-480K range. Talking about an eighty plus year old two bedroom, 1 bath. That’s Oakland, add a 100K for SF. A 500 square foot studio went for $499,000, but it has a three burner stove top and a sink.
Scottrade was very slow getting an order placed, Monday & Tuesday, but did get an order executed each day.
We have not hit bottom yet, I expect that the Stock Market is going to hit rock bottom, meaning it is going to be broke due to the USA not being in any better economic situation than China.We have paper money backed by more money to be printed. If you see a dollar bill on the grass, do not pick it up,it will be worthless.
The Fed is responsible for the bubble that the country’s economy has grown and will soon “save” it again with another QE. As past money printing have failed 3 times, so will this fail. My book, “Freedom’s Nation, A Return to Free Markets and Prosperity” tells how the country’s economy got to this point, and how it can be fixed. The Fed is the cause and only responsible independent leadership will get us out of this situation.
I made 300% in 4 days on 2x inverse etf options on the Russell 2000 based in part on your excellent analysis. I’ve took profits on half that position this morning. I think there will be some sort of 40% to 50% bounce back rally soon but then the bottom should really drop out
Maybe what’s going on in China has a silver lining. Could it be that capitalism is breaking out all over and it’s being demonstrated to the out of date central planners that they simply can’t control it like they thought they could. Even a communist-capitalist hybrid doesn’t work and they are finding out the hard way. Also! Did China actually devalue their currency or just unpeg it to allow it to float just like everybody else? I think China is actually just staggering into the real world the rest of us live in. I hope so. Jim
Jim, a very thoughtful and wise comment. You could sit on my cabinet any day if I were president.
your assessment of the current situation is pretty much on point.true there are opportunities in this current market .acting on them requires huge courage.a case in point is noble energy which at current levels has shed over 20 points from its somewhat recent high.the day the market shed points by the 1000 this stock hit 29.17 and rebounded 2 dollars during that rout.a very nimble trader can use this type pattern to trade very quickly before the gain evaporates.ive seen this pattern repeat agood number of times.i have not traded it yet but ive spotted this price action and will use it. good luck.
The question of the day; How high will a dead cat bounce? The question for tomorrow; How many times will a dead cat bounce? (<:
Thanks for the humor…
Each bounce is one-half the height of the previous height until the cat is pronounced dead.
The ugliness of Monday was made more intense when I was trying to adjust stop losses. Problem is, I couldn’t access the account via Latop, mobile phone, tablet, smart tv, nothing. TD Abarely trade’s server wouldnt accept the login. So, the scary part is, yesterday was only the beginning. I have no faith left in the market or my halfwit brokerage.
The other thing that struck me as odd was seeing many stocks with ramdom share prices that weren’t realistic. For example, ZG had avg’d about $23-24/ share, then outta nowhere the price is $15 for less than a minute, then instantly it was back to 23-24. I dont buy it, who would’ve sold at $10 less than the bid? This situation happened to several stocks. So, did we get hacked?
Come on Deadpan, don’t you know the whole system is rigged to increase to transfer your wealth to the more wealthy.
Mike
The modest intervention by the Peoples Bank on several fronts indicates they believe only a small adjustment is required. For the US we seem to be held by the threat of interest rate increases. The volatility will continue in the US until the FED makes its decision.
Actually Mike, the “market” is making the decision for the Fed… There will not be an interest rate hike unless the Fed wants to intentionally torpedo the U.S. market and the economy… Maybe that’s the plan…
We do have a Muslim administration that wants the U.S to wilt and come to its knees before the rest of the world.
Dear Mike…I don’t know where to begin but I’ll try. I am a 68 year old semi-retired European car mechanic. I live in the mountains of NC with my wife, a 66 year old mother of three now grown children and now a real estate broker. I sold my business in Florida in 1990 and made a couple of mistakes which ultimately lead to losing all of the accumulated money. We now live on SS, plus money that I can make working on cars and what Kathleen can make in the sluggish real estate world. I have very little to no money to do anything with but I was thinking that I could make a few extra dollars if I were to do a little “investing”. My question is…How would I go about doing that? Thanks for any answer that you might offer. Jack
Jack, I’m your age and have four kids and five grandchildren. I’ll tell you the same thing I’m telling them. I think nothing is going to be more valuable over the next few years than the good old greenback dollar. Bury it in the backyard in an old mason jar. It’s buying power is going to increase like we have never seen it. It will be the worlds reserve currency as long as we are alive and will buy things in the future you couldn’t dream of buying now. This is how my grandfather got rich in the 20s and 30s and its going to work again. Just my opinion and in no expert. Jim
Good opinion Jim… I bury at least one Monster Box of Silver American Eagles just for insurance.
Even if we are wrong what damage have we done. There’s worse things than a night in Bangkok with a fistful of dollars! Jim
Dear Mike
My predictions are right on target and glad my entire portfolio is safe from both stocks and bonds. I predicted the collapse of China’s economy and market long ago, and even predicted what is happening now to occur before September and drag out through the end of 2016, no matter what the FED does or does not do with the rate. I also agree with many others that the QE did not work in the U.S. And the same will prove true in Europe and Asia. We are so entangled with all these trade agreements with all these other countries and we are holding the dirty end of the stick where our exports are no longer competitive because of the power of the dollar over other currencies and the poor state of their economies. We don’t make much other than weapons in the U.S. Which makes us nothing more than a service type economy for the products of other countries. I foresee the worse stock and bond market crash in the history of the U.S. And the world. Recovery will take decades and the only thing that can speed up our recovery is getting back into the manufacturing business and go back to tariffs on imports to make our products competitive with the foreign countries. Being a victim of hurricane Katrina, it makes more sense to rebuild then to repair during catastrophes. Until then Buy low and sell high.
Bill
Back in the 1930’s protectionism helped. We have such an enormous debt problem now, it wouldn’t surprise me if going down fighting they will try anything. Our POTUS plays golf and just as the emperor watched as Rome burn we have an equally capable leader. Fills you with confidence doesn’t it?
I was not able to enter my Scottrade account until 45 minutes after the market opened.
Gentleman, They party hasn’t even started yet and already the sharks have begun the feeding frenzy. Lol..nothing like a little act of terrorism in. China by well known conspirators yo launch the elaborate well planed out Panic crusade which in my opinion sets the stage for more kios and confusion giving rise to an artificially inflated rumor that the worlds financial stabability is being shaken by fears of the posibility that the powers that be may conceivably on top of issueing a new consolidated monetary banknote as a new currency but there may subsiquently be large morgage forclosure on debt laden nations which can further exaserbate the fear of a mass civil panic resulting from foriegn nations callin in and exercising there right to forclose on major capital cities. If im not mistaken, the entire state of Texas is claimed to be owned by a Consortium of savy financial Entrepenours. Clearly anythings possible given the state of the balance of power within the political arena. Insidently, I myself am considering throwing in my fidora in hopes that a Righteous
Mentality Democratic movement may gain momentum possibly leading to a foot in the door
Of the White House.l
Attempted to sell UVXY per Larry Edelsons text at 1100 down of market; my Scottrade account would not allow entry until market hit 670 down finally sold netting $3536; bought 100 shares at 26.90 and sold at 61.70. Return would have been much better had I been signed on to scottrade; I was watching move to 1100 on Iphone big surprise as I attempted to sign on to account I watched helplessly as profits fell. Next time I will use iPhone to place trade may have been faster entry?
As i said before the crash on sunday we are on a crash mode , beware of these technical up swings , they dont mean anything .
1) those who have brave hearts dont accumilate yet , you will see better prices coming soon.
2)those who have scared money should get the hell out.
3) those who wants to make money anyways should short the market anb buy Puts . The dow could go to 14000 and the Spy to 150 in the next few months could be weeks .
4) without the support of the chineense Fed it would have been a major crash .
5) the Fed in the US is on high alert helpless , the QE doesnt work for ever there could be a major crash still to come soon.
If anyone thinks any government anywhere can control greed, avarice, and/or other human emotions expressed as prices in open markets, then I have a bridge in Brooklyn I want to sell to you! Left to it’s own devices the market will eventually find it’s way! This is the way markets are supposed to react and we are seeing this now. There has to be much more downside for the markets to detox themselves from recent QE’s and that may play out over the next few months or longer.
It is a proven fact that humans freeze when faced with any situation out of the ordinary. This indecision can sometimes be costly and/or life threatening or even end in a loss of life. This indecision is the reason good traders have a plan and really good traders/investors follow thru on that plan. It’s simply called execution!
Methinks most traders are being executed rather executing a plan…
Chalk it up to the Normalcy Bias disease…
Humans have just enough intelligence to go to the moon and other planets, but they are really stupid when it comes to finances… Only a very select few will come out of this transfer of wealth with some of their assets intact…!
Dr. Donnie from USC, what is your “Dr” in?
Wednesday market predictions:
DOW -0.58
S&P -0.41
NAS -0.78
More folks retreating to Equity Accounts remainder of year, especially baby boomers in USA. This ride downward is on last slope, but at the bottom until October 2016. Its out of our FED Control and more so out of control based on what is happening globally and domestic combined. Anyone firecracker can cause the economy to implode.
There has been a lot of trashing on this site of the current administration and yet, as with FDR, this Democratic Administration has brought us back from the brink (like FDR’s) after Republican Administrations allowed the Cabal of Banking, Brokerage and Insurance to once again run wild engaging in unbridled, unrestricted, highly speculative trading, the very thing that brought the markets down during the Republican Administrations in 1929 and 2007……
I must admit that it is amusing how the GOP ALWAYS is pointing figures at the Democrats, when, if fact, they were the ones that caused the Crashes and Depressions by allowing their benefactors to run wild…
I’m reminded of a study that was posted in the New York Times in the early days of the Obama Administration, a number of years ago… That study pointed out that since 1929, $10,000 invested ONLY in Democratic Administrations would have grown to roughly $400,000. During the same time period, $10,000 invested in ONLY Republican Administrations would have only grown to roughly $11,000. Further the study went on to show that since the dollar had fallen about 90% in value since 1929, the $10,000 invested in only Republican Administrations would have actually lost money…
Those are facts, not political rhetoric… Something to think about, as a investor, before you drink the Republican, “hate the Liberal Democrats” punch, aye?
http://www.dailykos.com/story/2012/05/25/1094785/-Dumb-Rich-People
WELL lets see what have the demoncrats brought us lots of people who don’t want to work and don’t know how to work multi generations of welfare receipients. A SYSTEM OF TAX AND SPEND AND TAX AND SPEND MORE…… degraded the school systems by letting students think I don’t need to learn I can just go on welfare …. telling people we need to legalize drugs …. dividing the races just to win an election causing racial tensions . Another thing when OBUMMER DOESNT LIKE THE stats for unemployment he just changes the way they are calculated such as…. ohh the unemployment rate is too high well lets change the way its calculated to get a better number like he did by saying if your unemployed more than 6 months your not unemployed even though that person can collect unemployment benefits for over 2 yrs and by the way your constantly referring to how great things were when dementedcrats are in your referring to 1880 and 1929 factors change constantly what happened 85-130 yrs ago has no bearing on things now its funny liberals blame bush for the recession in 2001 anybody with a brain knows recessions start 18 months before they show up on the radar so actually it started with Clinton you seem to miss the real stats. and by the way who trades with simple candlestick charts like you were bragging about everyone knows you trade with indicators and your looking for those indicators to give you a overbought signal to sell and a oversold indicator to buy. SOME EASY ONES TO WORK WITH AND THAT WORK WELL WITH EACH OTHER ARE a Williams% r/ Williams %k fast stochastic/slow stochastic relative stock index and a pro/go indicator and throw in a moving avg. convergence to divergence
Reagan started these big deficits when he cut spending but had not the guts to cut spending, despite the fact that he had a majority in his last administration…. I’ve not used William since QE started… Trend lines have worked much better in this environment (new stuff- KISS Theory)….
You need to study economics and the REAL causes of 1929 and 2007 (It wasn’t Barney Franks )…. It really was run away speculation. Notice it never happened during the 66 years (1933-1999) that G.S. was the law of the land…..
Facts are facts… Google to do the research if you disbelieve me…. Don’t expect that from limphog. Heck, ask Mike, author of this site, if those numbers don’t walk out..
Clinton’s eight years was the only time since Reagan that the Deficit did not skyrocket.
(taxes)
short answer yes scottrade bogged down so badly that even as unsophisticated as i am, i knew that any decision that i might have made was not likely to be executed so i closed and went on to more effective activities thus i wonder what will be the effect on the computerized system when the s#^( hits the fan for real and orders are not already entered
gives one pause to think seems like that when you are able to set up a trade during business hours, you probably should not and when you really should, you do not stand a chance due to overload
another instance of our poorly working system being in snafu or is it fubar
I had some trouble getting Scottrade to respond a few times yesterday, but I attributed it to the market swings, and it resolved itself. Not a significant problem for me as I’m an investor, not a trader.
An investor is a trader that doesn’t take losses when he should to preserve his capital. The only other difference is their time frames are quite a bit different. I am 66 years old and can’t wait for another recovery that will most likely be at least 5 years in the future.
A rise in interest rates is coming soon , regardless of the outcome its a must , markets will start going down slowly but surely dow to between 14800 to 15500 , SPY 155 , to 165.