Wall Street on track for biggest December decline since the Great Depression

a reply to: toysforadults

I am aware.

I believe the Fed is trying to create a deflationary spiral.

originally posted by: burdman30ott6

originally posted by: Fools
ANyway, I have lost all of about 300 bucks since around September. Get back with me when my retirement is halved.

So another $122, more or less, ya?

Right, this is the end of time for the 2018 tax reporting season.

There are still a lot of people enrolled in "managed income" funds.
Those people have surprisingly not opted into options that would service the government debt yet.

Theoretically those that have been profiting from the stock market bubble since 2009 have still doubled their money.

A deeper sell off in stocks now means higher tax revenue for the 2018 tax year, along with lower mortgage rates for the younger buyers in the future so they will be able to afford a house.

Gauging investor psychology is a science, we saw what happened to the lab rats during the cryto-currency testing.
You have to be able to laugh at yourself and realize that we all have those not quite clear on the concept times when making decisions.

If you gamble, don't be too greedy seems to be the message for this Christmas and should guide policy in the New Year.

a reply to: anonentity

Yeah we're also coming up for a Federal election so I think there wont be any surprise interest rate rises.

Now the banks have however tightened lending criteria where larger deposits will be needed.
They quietly passed in Bank Bail-In laws in Feb 2018. If the SHTF depositors will lose their money and be given scrip in a "new bank" LOL.

When you say most politicians are into R/E I would imagine different special criteria apply to them as they do the bidding of the banks anyway.


www.businessinsider.com.au...

However, when it comes to their investments, the same cannot be said.

Most are still incredibly cautious, continuing the theme that’s been in place since the GFC. And those fears are getting worse, not better, especially towards the housing market and shares.

“Responses on the ‘wisest place for savings’ suggest risk aversion has intensified,” said Bill Evans, Chief Economist at Westpac Bank, following the release of the latest Westpac-MI Consumer Sentiment report for December today.

“Nearly two thirds of consumers now favour safe options — bank deposits, superannuation or paying down debt. Only 10% favour real estate, a new record low going back to 1974.

a reply to: japhrimu

If you want to pretend you know what you're talking about ...well..... (Shrug)

a reply to: madenusa

an established power has never passively watched a rising power take its spot... America is #2 China's rise means Loss of power and wealth

they take turns ...thats why they have Bilderberger meetings. There'll be a short war between the US and China - China will be the new reserve currency to re-balance the debt between China and the US.

a reply to: projectvxn

The Fed is using interest rates to arrest economic growth and NO ONE actually knows why.

A couple of years ago they knew that they had to start rising interest rates again. To re-inflate the economy. They couldn't risk becoming like Japan which had 20 years of stagflation.

During inflationary periods the Govts perceived liabilities are cheaper to service as they are paying debt back in tomorrows devalued $'s.

This has been going on for the last century.

The fine balance comes from knowing when to and by how much. Otherwise it may tip abruptly the other way.

a reply to: rickymouse

Not that simple. Peoples pension funds are in Stocks. When the time is right they'll ( the real movers ) crash the system and buy back the assets for pennies on the $. The same dance that the Rock('fellas and Roths-)rollers have been doing for the last 100 years.

a reply to: wantsome

You get it spot on - convert everything to gold now and buy back stock after the crash - a double killing.

a reply to: TheConstruKctionofLight

The reason the Fed is raising interest rates is to cool the economy before Trumps bubble bursts , it's something central banks do to control growth.
Obviously Trump doesn't understand this so he takes it personally because he knows better than economists just as he knows better than the secret services.

a reply to: Willtell

wiki

The Recession of 2008 (also called the Recession of the late 2000s or the Great Recession) was a major worldwide economic downturn that began in 2008 and continued into 2010 and beyond. It was caused by the Financial Crisis of 2008; it was by far the worst recession since the Great Depression of the 1930s.Sep 26, 2018

You dont have to be an economist to make an informed opinion. If there was consensus amongst them or if they studied economic history they would have admitted that things could not go up forever.

Try to get a picture of the derivatives bubble in context - its staggering


theeconomiccollapseblog.com...

Financial Weapons Of Mass Destruction: The Top 25 U.S. Banks Have222 Trillion Dollars Of Exposure To Derivatives

www.thebubblebubble.com...

His twitter....

twitter.com...

If 1 major bank goes under, the whole banking syst. goes under. They're all inextricably linked via QUADRILLION$ of derivatives contracts.

Now....................look at this......................hmmm

world gdp 2017 total - google

In 2017, global GDP amounted to about 80.05 trillionU.S. dollars. Gross domestic product, also known as GDP, is the accumulated value of all finished goods and services produced in a country, often measured annually.

a reply to: projectvxn

Not by raising rates according to one definition. We've had low interest rates for a while now. They're trying to re-inflate the economy slowly

en.wikipedia.org...

What is a deflationary trap?
A deflationary trap is a state of persistent deflation that can spiral downward in the face of zero percent interest, according to Yasushi Iwamoto, professor of economics at the University of Tokyo.

a reply to: TheConstruKctionofLight

In the face of zero percent interest. You need high rates to decrease inflation in a system pumped with cheap money. Do this long enough and you'll trigger a deflationary spiral.

The Dow is on another slide , currently down 545.06 points , there were falls in Europe but not as severe.

a reply to: gortex

The plunge protection team pushed it up at the last minute, which must have been a nightmare for the shorts. I think buying physical PM's might be difficult at this time of the year if the next drop turns into the big one.