BLACK FRIDAY? - 05 Aug 2011

BURN BABY BURN!!!!!!

reply to post by Rockpuck


OK, October Sucks! Gottit!

If we truly live in a capitalist world then I say let them fall!
Someone will always come along and bail the banks or a business out. Example china maybe (the new superpower)

That is if there is any money left which I very much doubt as it has been squandered by over paid
Fatcats... Rant over good luck everyone!

Id like to get my tax return before we have a crash. Lets try to hold off just a little longer.

Hmm, I wonder how much the Federal Reserve spent to keep the DOW slightly in the green?

Dow Closes +60.93 (Link didn't want to work)

One thing for sure.....the DOW hasn't made any sense in at least 3 years. I think all the program trading has removed any semblance of rhyme or reason in how the numbers react.

reply to post by getreadyalready


I have only been looking at the stock markets since 3 years ago and it actually makes sense to me that it is manipulated.
I told my sister this morning that between 2 and 4 today they will rally to try to get into the green and then fail and end up in the red.
They did just that....the part that i found odd,yet it kind of opened my eyes,was the fact you guys closed in the green.
It made me wonder if the American stock market was more corrupt then ours here in Canada.
Conclusion....more than likely.
I think your stock market is rigged.
Cough cough (goldman sachs) cough cough

We (TSX) ended up down around 240 like i knew we would after a false rally.
This is just my opinion and i have no clue how these things work.

I like how MSM is reporting that the Blue Chips recovered the loses from yesterday..........hhhmmmm

reply to post by Cloudsinthesky


This is just a completely uneducated guess, but I have been kicking it around for awhile.

Friday's are typically pay days. 401K deposits are made on Fridays, and they typically go into Blue Chips and Managed Funds. So, regardless of the particular economic climate, a large amount of money is pre-destined to get dumped into the market every Friday. Perhaps, a flat Friday is really a huge loss of a Friday, but tempered by the 401K deposits?

reply to post by DrumsRfun


It's no secret the Federal Reserve buys and sells stocks. They say as much on their website:

The purchase or sale of Treasury securities on an outright basis adds or drains reserves available in the banking system. Such transactions are arranged on a routine basis to offset other changes in the Federal Reserve’s balance sheet in conjunction with efforts to maintain conditions in the market for reserves consistent with the federal funds target rate set by the Federal Open Market Committee (FOMC).

Source

I remember when Greenspam used this vehicle to suppress the price of gold for example.

reply to post by getreadyalready


That could well be..........Next week will be interesting

In order to get the world economy back onto the right track, two things need to happen.

1. The Eurozone needs to re-establish independent monetary policy control back to each member country. This will enable countries to stimulate growth and have a more personalised strategy, For example, Germany and France are in different situations to Italy and Greece. The lack of capital and monetary mobility in the Eurozone will ensure that monetary policy decisions are localised and thus a balance can be restored with a view of disbanding the Euro in the long term.

2. The USA is too far into debt that cuts alone are going to be enough to balance the budget. While I am a stout right wing economist, there does need to be a change here in WHERE the money is being spent so that growth can return. With a higher GDP there will be more tax revenue coming into the treasury and thus the debt will be cleared at a much more accelerated rate. I liken it to putting more fuel in a car during a race. While you may lose time in the short term, in the long term you will make up that time with interest and have to make less stops.

Originally posted by iNkGeEk
so i guess the whole debit ceiling thing didn't matter much. the global economy is still tanking. and the US govt can't do another stimulus package because they have to cut spending. my guess is that the US job report is going to be way below what is expected.

You got that right. The debt ceiling thing was a farce to begin with, just a distraction piece and only a token gesture; nobody in the know ever thought it would truly do anything.

The global economy isn't just tanking, it's in a death spiral and it's screeching towards the ground at a tremendous pace.

There's likely nothing we can do about it at this point, the bankers have succeeded in their evil schemes.

reply to post by getreadyalready


There is also almost always a rebound of some kind following large losses. Simple buy low sell high mentality. If I still played the market there were a few good buys that were available this morning... my cell's etrade app was just begging me to make another deposit buuutttttttttttt..... to risky for my taste anymore. Manipulating the market is fine since well, that's capitalism, but when computer programs are doing the manipulation is defies Human logic.

reply to post by fenwaydirection

1. The Eurozone needs to re-establish independent monetary policy control back to each member country.

Really?

I was thinking that EUR members should abolish all social programs and have them run through a centralized European Government, a Federalist system, this puts the burden of monetary manipulation on the new EUR Federal system and away from actual economies.. Then create Federal rules, laws, regulations that no nation can trump, take over all interstate development and trade, and remove most governing authority away from the States.

United States of Europe.

2. The USA is too far into debt that cuts alone are going to be enough to balance the budget.

Keynesian Rules of Economics #1: Debt is a good thing. More debt is even better. Issueing debt to pay debt is best!

Nobody has ever seen a Keynesian economy collapse, and technically according to the theory .. it can't .. it perpetually grows. Even if it is a zombie.

Keynesian Rules of Economics #2: If the economy does contract... lie your ass off and pretend it doesn't!

I'm rather astounded and the total lack of understanding of the basic laws of supply and demand.

Whether or not the dow is up, or down, isn't the point: PEOPLE ARE BUYING!

The day the market opens and everyone is selling and NO ONE is buying - bottom has been hit. But right now the process is just simply mind-control oriented gambling in which folks on one side try to convince folks on the other to take their bets. As long as the bets are going, things are fine (whatever fine means that is).

supply and demand is a work, high or low.

reply to post by Digital_Reality


You do realize that if we had a crash just after you got your tax returns.. your money would be worthless, right?

Well you got the Black Friday part right. Just in tonight, the S & P just downgraded the U.S.

news.yahoo.com...

NEW YORK (Reuters) - The United States lost its top-notch AAA credit rating from Standard & Poor's on Friday, in a dramatic reversal of fortune for the world's largest economy.

S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about growing budget deficits.

U.S. Treasuries, once undisputedly seen as the safest investment in the world, are now rated lower than bonds issued by countries such as the UK, Germany, France or Canada.

The outlook on the new U.S. credit rating is negative, S&P said in a statement, a sign that another downgrade is possible in the next 12 to 18 months.
ex]

BREAKING: S&P Lowers US Rating to AA+ OUTLOOK NEGATIVE

don't bother going to their website, it crashed......as are the markets on Monday......the only thing I am worried about is this event may cause a run on the dollar - collapsing the entire global economy.


(and who thinks the US government is going to curb their spending, THEY CAN'T - they are going to have to start up QE3, or the economy is going to sink - they are damned if they do and damned if they don't)

reply to post by JakiusFogg


They even saved the best for last. They waited until after the closing bell on a Friday to announce that America's credit downgrade is immenent.

If they would have let this one out during the trading day, or at least in the middle of the week, the Dow would have probably gone down by about 4,000 points. I actually hope it still loses 4,000 on Monday, I'm down with The Plan, anyway. End all this fiat money crap!!!