Stocks [and Dollar] Plunge After Weak Jobs Report

Stocks [and Dollar] Plunge After Weak Jobs Report

news.yahoo.com

Stocks plunged in early trading .. Friday after the government reported payrolls in August fell for the first time in four years... The Dow Jones industrial average fell more than 150 points.

The dollar fell sharply... as the likelihood of an interest rate cut appeared to increase... In addition, gold prices rose ...

(visit the link for the full news article)



Related AboveTopSecret.com Discussion Threads:
Billions in Put Options purchased betting that the market will crash (UPDATE: CALL MADE?)
Is China Quietly Dumping US Treasuries?

The weakness in the markets continued this week with injections of billions in liquidity happening in Australia, Europe and the US.

In addition the ECB and Canadian central banks are two banks that have decided to leave their key interest rates unchanged this week.

Gold has climbed over 700 USD and remains above that level, reflecting the weak dollar and a flight to safety. It was revealed yesterday the China may be quietly dumping US securities.

Finally, the US dollar index has just broken below support at 80!!

A significant event that will likely be written about over the weekend.


.

news.yahoo.com
(visit the link for the full news article)

edit: spelling


[edit on 9/7/2007 by Gools]

I wonder if the approaching sixth anniversary of 9-11 and the alleged resurfacing and message from Bin Laden have anything to so with this?

Add to the mix Gold hitting over $700 and silver set to rise above $13...

Exciting time for those that had just a little foresight...

[edit on 7-9-2007 by antar]

China is not dumping , Infact, rates are falling like a rock and have broken a 1 1/2 year technical level the last few weeks signaling we could be on our way to %4 .. US bonds are being bought up like crazy.

In the markets The US markets fell just about 2% where the international markets fell over %2.5.

There is nothing really serious going on here unless rates were going up along with this whole scenario.

plasma TVs will be cheap this christmas. Time to finance that new car too!

reply to post by psperos


I agree but the only thing we want to refinance is our home fix rate, so it has to fall to 5.6 in order for us to make a good deal.

As for the TV we already got a good deal on a 62 inch.

And as for our cars they are both at 0 percent so nothing can beat that.

Now I hope the credit cards fall also below the 14 percent.

Another Dollar negative event that hasn't received much press yet, is Nippon Oil's decision yesterday to begin purchasing Iranian oil in Yen.

When it was reported in press in July, and posted here on ATS, that Iran was requesting oil purchases in Yen...many in-the-know economic advisors were downplaying this possibility. Well surprise! Nippon Oil buys approximately 25% of total Japanese oil imports from Iran.

When one recalls that Iraq began selling oil in Euros just months before The Decider decided to invade that soverign nation...this could...I repeat could be construed as...well, you know where I'm going with this.

In any event, this important, under-reported news has significant ramifications for the future value of the worlds reserve currency.

Well this is news that you don't get to see on Fox. no wonder we got bin-laden all over the news to keep the people away from looking at the markets and what is going on.

So now the desperation for Iraq to turn over their oil rights to US is going to be the reason for pushing Maliki out of power.

Or the decider will decide to hurry up and attack Iran for being an axis of evil.

It is a major terrorist act what Iran is doing right now you know, going against the dollar on oil business.

Damn, I was riding the EUR/USD forex all week waiting for the drop of the dollar. I got out early yesterday. I should have stuck with it.... to bad forex is closed over the weekend.

Originally posted by psperos
China is not dumping....
....US bonds are being bought up like crazy.

It looks like the bond market is being driven by investors dumping equities and moving into the 'safety' of Treasuries psperos. Data from the New York Federal Reserve shows that foreign central banks had trimmed their holdings of US Treasuries by $48 billion since late July. Last week, foreign purchase of Treasuries rebounded a bit, but overall, the rally was offset by their sale of Agency Debt.

This info is updated every week (Thursday evening) as an appendix to the weekly statement of the condition of the Federal Reserve System. If by chance you happen to be like me, a total control freak with no real life you can suss the numbers here yourself. Just click-on the appropriate date. Otherwise, you can go to sites like this to catch the pertinent stuff.

We don't know how much of this selling is China, but the educated speculation seems to favor their involvement.

one view is that China and others are dumping U.S. treasuries,
but that's just the spinmeisters...

do a search engine for; 'Sovereign Wealth Funds'
sure treasuries are being spent/exchanged...but for the reason
of buying U.S. equities, or investing in private equity investment groups
(like the position China recently made in Blackstone)

see, the U.S. money did not disappear from the China treasury, they just invested the U.S. debt in different money making ventures, called SWFs.


as far as the 'jobs reports'
well, those statistics were artificial, just like the inflation index,
just like the CPI & core CPI (consumer price indices)
it's a matter of the illusionary economies curtain being pulled back
the market people are starting to quit their 'look the other way'
attitudes...
The harsh reality of the Federal Reserves' and the GAOs
'goldilocks' economic profile is slowly being revealed as the
hideous, corrupted, wart beseiged Hag it really is.

To ways in which this will get worse;

A) The Fed doesn't cut.

B) Or the cut is meaningless and not symbolic.

Originally posted by Gools
It was revealed yesterday the China may be quietly dumping US securities.

Yikes!

If that's true... could it be the leading edge for dumping the dollar as the oil standard currency? Chavez has been making noise about that for sometime.

Kinda odd that his desire to switch to the EURO is about the only thing out of his mouth that we here nothing about in the western media...

Anyway you slice it, if that was to happen... well... all us Westerners might as well kiss our way of life good bye.

Originally posted by antar
I wonder if the approaching sixth anniversary of 9-11 and the alleged resurfacing and message from Bin Laden have anything to so with this?

Add to the mix Gold hitting over $700 and silver set to rise above $13...

Exciting time for those that had just a little foresight...

[edit on 7-9-2007 by antar]

I had the foresight, when I saw Gold at 630 awhile back I bought as much as I could. And told everyone else to get on board now.
yeeeehaaaw


Information > Blissful Ignorance.



[edit on 8-9-2007 by AwakeAndAllSeeing]

China has big plans for the US economy, because a communist country that has help buy out US debt so US can keep fighting wars and survive, while at the same time China has been inundating our markets with their goods is because they have big plans.

China holds billions of dollars on our debt and 1 trillion dollar of American assets in the EU markets.

That means a lot when it comes to what and where they have invested behind other banks when it comes to our nation.

Beware, when the dragon make their next move.

When China announced the creation of it's SWF this past spring, it was believed that they would invest these funds in securities like Fannie Mae and Freddie Mac backed 'Agency Debt' so as not to disrupt the broad markets.

I guess the point is that the data shows foreigners are reducing their U.S. securities holdings...both Treasuries and Agency Debt. Somebody is selling, and somebody will need to cover the shortfall.

If the $ ends-up in SWF's seeking higher yields, there is no guarantee where that money will re-invest...U.S. corporate assets? (Blackstone)...emerging markets?...country of origin?...Commodities? The US Equities market doesn't look like great bet at the moment, and Corporate America is bracing for a slowdown. Blackstone went public at $31, and is now trading around $25...a major haircut for Beijing's $3BB share.

A good source for a realistic assessment of gubmnt economic numbers etc is Shadow Gov Stats

Edit: Massacred the Kings English

[edit on 8-9-2007 by OBE1]