2011 Global Stock Market Collapse Watch

reply to post by majesticgent


The seem to be revising previous week's jobless claims upward each week, and wonder how much of this includes those who have stopped looking for work and applying for claims?

Originally posted by majesticgent
US jobless rates fell which is a little good news and probably what caused the uptick in futures prior to the fall after China announced cuts to the French banks.

Bet you anything the unemployment numbers get revised down as soon as they become less relevant.

Originally posted by surrealist
reply to post by majesticgent

 

The seem to be revising previous week's jobless claims upward each week, and wonder how much of this includes those who have stopped looking for work and applying for claims?

It's just playing with the numbers. I do not think anything really got better. You have to think. Some people who work with the US school systems, janitors, bus drivers, maintenance, cafeteria workers etc etc file and collect unemployment while the summer break is on. Then when school opens again around August they have a job again and the jobless claims go down.

Originally posted by adifferentbreed
I was talking about the thread for the day.....

Ah, ok lol

Caught some very interesting wording on the live blog on WSJ.com Very interesting indeed. Not surprising though, just interesting...

After the first-ever credit downgrade of the U.S., markets around the world are coming to grips with a new world order. Meanwhile, the the Federal Reserve pledged to keep interest rates near zero at least through mid-2013, and the European Central Bank said it will buy up bonds on a massive scale. Follow continuing live coverage of the political and market tumult below. For previous live blog entries,

blogs.wsj.com...

Did they just spill the beans?

reply to post by majesticgent


Wow! How blatant was that?
Nothing like letting the cat out of the bag kinda casually, huh?

reply to post by surrealist


the more appropriate rate to keep tabs on is the underemployment rate:
www.economytrack.org...

Underemployment includes three classifications of persons -unemployed workers who are actively looking for work, involuntarily part-time workers who want full-time work but have had to settle for part-time hours, and marginally attached workers who want and are available for a job, but are not actively looking. Together, they provide a more comprehensive measure of slack in the labor market.

The madness continues. This is the latest that is causing the stocks to rise.

French President Nicolas Sarkozy says he will meet German Chancellor Angela Merkel on Tuesday for talks on solutions to Europe's financial difficulties.

Sarkozy's office said in a statement Thursday that the two will come up with "joint proposals" on the governance of the eurozone before the end of the summer.

Merkel's office confirmed the Aug. 16 meeting without providing further comment.

The announcement comes amid turmoil that is rattling world financial markets and anxieties about the health of leading global economies.

www.newser.com...

Has the market ever been this reactive to any little news headline before?

Well gold is dropping, if that's an indicator the day may be a little better.

Up off the opening bell . . . dead kitty boing-boing or just another day at the schizoid?

So it would seem QE is on the risefrom this link. It has a link to an article that says the Fed will buy $25B in bonds every month 'until further notice'. But more interestingly enough, there is a chart of our debt situation. It looks as though most of the market activity is based clearly upon Agency Debt/MBS and Treasuries, all of which ballooned during the 2008 crisis. It also shows the death of lending to short term financials and non-bank credit. They flatlined about a year ago. So now we can see that Wall Street is a huge SEC mafia using toxic assets to keep themselves afloat. Where are the assets?

reply to post by Manawydan


The unemployment figures ar a joke. They should be using the U6 unemployment instead. Somehow they factored in the birth/death ratio into the jobs numbers to make it look more palateable. They also fail to factor in the folks that stopped getting unemployment checks or just stopped looking for work.

Originally posted by OuttaTime
So it would seem QE is on the risefrom this link. It has a link to an article that says the Fed will buy $25B in bonds every month 'until further notice'.ts?

Where are they getting this money from? If they are just printing it, how do they plan to stop inflation? Collapse the price of oil? Is that what they meant when they said they had some tools for corrective action to help the economy?

Hmm. It is appearing more and more that QE3 is right around the corner or has already begun. The question remains. Where are they getting the capital to do such a thing?

"We now see a greater-than-even chance that the FOMC will resume quantitative easing later this year or in early 2012. We have changed our call because today's statement suggests that the committee's reaction function to incoming economic news is more dovish than we had previously thought," Jan Hatzius, chief economist at the firm, said in a note.

The explicit commitment to keep policy rates low through mid-2013 and a bias to easing policy further were more aggressive than expected and resulted in Goldman penciling in QE3 after the previous $600 billion bond-purchase program ended in June.

Hatzius said he thought the fact that Fed Chairman Ben Bernanke went ahead with a promise to keep rates low within a specific time frame despite three dissents in the policy-setting committee was a sign the rest of the central bank believe renewed easing is important.

www.reuters.com...

Originally posted by majesticgent

Originally posted by OuttaTime
So it would seem QE is on the risefrom this link. It has a link to an article that says the Fed will buy $25B in bonds every month 'until further notice'.ts?

Where are they getting this money from? If they are just printing it, how do they plan to stop inflation? Collapse the price of oil? Is that what they meant when they said they had some tools for corrective action to help the economy?

Maybe they think the threat of inflation is the lesser to two evils, at least for now. One recent article states:

The reality is that bolder QE would bring big risks for the dollar and for inflation in the United States and outside. QE2 coincided with a surge in global commodity prices, increasing inflation in emerging economies and, now, in America itself to 3.6 per cent - with gasoline prices up 35.6 per cent in the past year. U.S. consumers' purchasing power has been harmed. And so therefore has U.S. growth. If more QE means higher prices, QE itself risk becoming an obstacle to growth.

Source

The article also states the FED may have more tricks up their sleeves like a helicopter drop of money or "money-financed tax cut".

As Vatican become richer

Originally posted by majesticgent

Originally posted by OuttaTime
So it would seem QE is on the risefrom this link. It has a link to an article that says the Fed will buy $25B in bonds every month 'until further notice'.ts?

Where are they getting this money from? If they are just printing it, how do they plan to stop inflation? Collapse the price of oil? Is that what they meant when they said they had some tools for corrective action to help the economy?

Oh they're not printing money for it. They're just numbers on a computer attached to an IOU. Then they can 'lend' it to other countries so they can buy our bonds with it backed by toxic MBSs. The whole time they are monetizing the debt to keep it proportional for an artificial hedge against hyperinflation. If they were printing up trillions of dollars, it would fatally devalue the money already in circulation. The whole global market mess is incomprehensible anymore. It's like building a gingerbread house during the rainy season

reply to post by OuttaTime


it's a shell game. moving money here, borrowing from there, borrowing money to lend etc.

reply to post by Crakeur


Absolutely. And just like Rome, there is bread and wine for the masses so we can watch our UFC cage-fighting gladiator games. A big tax increase is all we need to mimic the downfall of Rome. Everything else is already history.

Did anyone else notice the European stocks ALL started spiking up at about 1:30 (their time) FTSE, and an hour later in France & Germany? I have noticed it the last few sessions when they start to come back, that they all pop at exactly the same time. The ECB is a busy little bee, just like our illustrious Fed cartel.