"Very big collapse of all financial mkts"

[solve_et_coagula]

Sr. Financial Mgr sees ultimately a "Very big collapse of all financial mkts" and hyperinflation!

http://www.moneycontrol.com/news/video/newsvideo.php?autono=297376

[Anders Lindman]

Let's be calm. There is no need to panic! :D

[i_am]

Let's be calm. There is no need to panic! :D

It isn't looking real good :rolleyes:

http://new.quote.com/world/asia_australia.action

[synergy777]

listen if you look at the fundamentals and not market/tv hype, ist been on the cards, it the whole emperors new clothes, jumping on the band wagon, following the sheep, lemmings, herd behaviour. if people stepped aside looked at it properly, at the monetary policy, inflation, wages, outsourcing etc, they would not be shocked.

i am not shocked, i am profitting from it. i went short ages ago. i had people ridicule me, but i stuck with my views, now they are crying, and i am buying.the only thing that shocked me was the central banks, thats the last move, and its not worked,.

[Anders Lindman]

It isn't looking real good :rolleyes:

http://new.quote.com/world/asia_australia.action

The nordic markets:

http://new.quote.com/world/nordic.action

:eek:

[redhead]

The FTSE 100 as of 1230gmt

http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/stockmarket/3/default.stm

Its looking very similar to the closed Asian markets and the nordic markets, the time is almost upon us, i've been telling people for years this was going to happen, and i've been labeled mad, I have no debt, dont own a house lol......you tell me who's the mad one now.

PEACE

RED

[Anders Lindman]

the only thing that shocked me was the central banks, thats the last move, and its not worked,.

I wonder why the central banks have to pump in more money. Is it because when many sell their shares then more out-of-thin-air money is needed? In that case the shares were nothing but thin air to begin with! :eek:

[synergy777]

the central banks are just keeping the market going until it bottoms out. then they will help their friends at the banks to buy all the cheap stock.

[Anders Lindman]

Yeah, probably the money they pump in is to make sure the trades run without friction, i.e. they need to fuel the markets with money that can be used instantly. But I still wonder though about the actual value of the shares, if the shares, just like fractional reserve money, don't have any real substance. :confused:

[truthseeker1980]

What does this mean to the average Joe, who has no stocks or shares and is heavily in debt?

[Anders Lindman]

Another guess is that the central banks have to pump in enormous amounts of money due to the probably extremely large percentage of day trading. Efficient electronic trading systems make it possible to do much more selling and buying per hour than in the past. The professional traders only have to look at a one day timespan. For long-term investments they can look at timespans of several years, but in day trading they can start afresh each morning and finish all trades in the afternoon just before the stock market closes. This can clearly be seen in the stock charts where each day very often has its own separate graph with abrupt jumps between the days.

[Anders Lindman]

What does this mean to the average Joe, who has no stocks or shares and is heavily in debt?

Surely all that pumping in of money must fuel inflation, which for the ordinary citizen would (or at least could) mean a decrease in personal buying power. Being heavily in debt would on the other hand mean the opposite, given that the personal income is adjusted for the inflation. It will then be easier to pay the debt, because of the inflation.

[truthseeker1980]

That's what i was thinking, the UK government wont want to raise inflation then, as we have the highest personal debt in Europe.

Due to the stupid cost of living. Obviously on purpose.

[Anders Lindman]

Holy smokers! Check out this Canadian chart:

http://new.quote.com/stocks/chart.action?s=$JX-TC&period=D&bartype=BAR&bardensity=LOW

-11.25% at the moment. Looks like a major drop. It's the S&P/TSX VENTURE INDEX. Anyone knows if such large drop is normal for this index?

[fccool]

I wonder why the central banks have to pump in more money. Is it because when many sell their shares then more out-of-thin-air money is needed? In that case the shares were nothing but thin air to begin with! :eek:

This is NOT why they have to pump more money :). In order for this to keep going even a couple of years... people need to get money somewhere to cover the cost of the interest payments. Since there were no money created to pay ever so growing interest, the credit have to be constantly pumped into economy... otherwise the foreclosure rate will skyrocket and ultimatelly the domino effect will cause everything to crumble down. So, pumping more credit money will keep the economy afloat until it physically can not go on without hyperinflation. We are veeery close to that point. The inflation is on aleash because of the huge and hyperinflated housing market, and government military and weapons markets, as well as enourmous pharmaceptical and healthcare markets wich all keep money out of hands of the people and thus keep the value of money relatively stable.

Stocks are nothing more than speculative money. Stocks worth very little on their own. These are just shares of the company that you buy. But companies do not jump in value in weeks time... it's only speculated that these will jump in value over next couple of months... and thus stocks rise in value. The speculations also being manipulated by people who push the bulshit. It's like me saying.... well the blackjack table winnings are supposed to jump today, so everybody run to blackjack table! It's nonsense. The only REAL value of the stocks is its PRESENT value. You can't have a stable and sustainable economy that runs on speculative means to wealth.
Credit ,arket is also speculative, becuase it speculates on peopl's ability to sustain their income and pay. Once people can not... there's extra money in economy and thus you get inflation at much greater rate than if people actually pay the debt in which case the money would be destroyed (taken out of the circulation)... and only interest kept by the bankers.

So what you see right now is nothing more than a sheer sence of panic :)... and banks trying to calm the panic by doing the only thing that they can do...creating money. It is interesting what Fed did with the money they created... they bought the future mortage contracts... so essentially they are trying to bail out the banks who who overid it with mortgage credit.

[fccool]

Holy smokers! Check out this Canadian chart:

http://new.quote.com/stocks/chart.action?s=$JX-TC&period=D&bartype=BAR&bardensity=LOW

-11.25% at the moment. Looks like a major drop. It's the S&P/TSX VENTURE INDEX. Anyone knows if such large drop is normal for this index?


Before getting too much into it... just look at long term charts. Although the steady drop should be an issue of cencern...

http://new.quote.com/stocks/chart.action?s=$JX-TC&chartUi.aggregation=M&chartUi.bartype=AREA&chartUi.bardensity=LOW

You can see that just from 05 it came from much more pathetic condition. Same with versually any market of the world. You have to understand that stock markets are almost always intentionally inflated in value to keep reasurring public that everything is ok.

[Anders Lindman]

Before getting too much into it... just look at long term charts. Although the steady drop should be an issue of cencern...

http://new.quote.com/stocks/chart.action?s=$JX-TC&chartUi.aggregation=M&chartUi.bartype=AREA&chartUi.bardensity=LOW

You can see that just from 05 it came from much more pathetic condition. Same with versually any market of the world. You have to understand that stock markets are almost always intentionally inflated in value to keep reasurring public that everything is ok.

Yes, I thought about checking the long term charts after I had posted it. I was a but hasty. It's a major and sharp drop though.

[Anders Lindman]

This is NOT why they have to pump more money :). In order for this to keep going even a couple of years... people need to get money somewhere to cover the cost of the interest payments.

Ah yeah, then what I wrote in another thread was true, that the central banks pumping out money was a symptom of the debt monster having to be fed.

[Anders Lindman]

Another massive drop, one of the Hong Kong indexes (down 10.67% at the moment):

http://new.quote.com/stocks/chart.action?s=$GEINX-HKG&chartUi.aggregation=V:15&chartUi.bartype=AREA&chartUi.bardensity=LOW

[fccool]

If you can, get a copy of the "Empire of Debt". It's probably the best book I've read on the subject, which approaches it somewhat sarcastically, yet in terms that anybody can understand, without any bulshit mask of "academic language". It also gives some insights in history of the empires without making the details boring and strenuous. I would highly recommend it. It's one of the few books which caused me to whip up the highlighter and color in quite a bit of the content. It has alot of good things to say about Sweeden too.

+ Any book that is written by authors whose last names are Bonner and Wiggin... need I say more :)

[Anders Lindman]

I found that the authors of Empire of Debt have a website:

http://www.dailyreckoning.com/

I haven't looked at the articles there yet, but could be interesting...