2011 Global Stock Market Collapse Watch

reply to post by SeekerofTruth101


Any bubble that they try to profit off of will burst. They are out of new bubbles to gain on. When the gold bubble bursts it will not be pretty. What comes up must come down; easy come easy go.

A divided U.S. appeals court in Atlanta ruled Friday that a key provision of last year's federal health-care overhaul is unconstitutional, siding with a group of 26 states that challenged the law.

The 2-1 ruling marks the Obama administration's biggest defeat to date in the multifront legal battle over the health-care law. The decision directly conflicts with a ruling issued in June by a federal appeals court in Cincinnati that upheld the law.

The U.S. Court of Appeals for the 11th Circuit ruled that Congress exceeded its constitutional powers when it required individuals to purchase health insurance or pay a penalty.

"This economic mandate represents a wholly novel and potentially unbounded assertion of congressional authority: the ability to compel Americans to purchase an expensive health insurance product they have elected not to buy, and to make them re-purchase that insurance product every month for their entire lives," Judges Joel Dubina and Frank Hull said in a jointly written opinion.

The decision affirmed part of a January ruling by U.S. District Judge Roger Vinson of Florida, who ruled the health-insurance mandate unconstitutional.

The appeals court, however, overturned the portion of Judge Vinson's decision that voided the entire health-care law. The appeals panel said the unconstitutional insurance mandate could be severed from the rest of the law, with other provisions remaining "legally operative."

The Cincinnati-based Sixth Circuit Court of Appeals upheld the health law on a 2-1 vote in June. The Supreme Court is widely expected to provide the final word on the law's constitutionality, possibly as soon as its next term, which begins in October and runs through June 2012.

online.wsj.com...

www.abovetopsecret.com...

I'm sure the markets will soar upon hearing this news since every headline accounts for significant gains or losses. I have a feeling the US Supreme Court is going to shoot this one down too.

The picture shows it best:

[atsimg]http://files.abovetopsecret.com/images/member/3709bd7549bb.gif[/atsimg]

Lifted off advisorperspectives.com... a site to follow.

reply to post by SeekerofTruth101


Short selling ftw!!! Somehow, other countries banning shorting makes me want to short even more

Oh yeah, and you can short the market without having a margin account. There are these things called inverse ETF's which track the market, but in reverse. So when the market goes down, they go up. Just don't hold them longer than short term (or however long the trend lasts) because they tend to decay over time. Right now, I'm watching TZA, looking for a good entry point.

Originally posted by mossme89
reply to post by SeekerofTruth101

 

Short selling ftw!!! Somehow, other countries banning shorting makes me want to short even more

Oh yeah, and you can short the market without having a margin account. There are these things called inverse ETF's which track the market, but in reverse. So when the market goes down, they go up. Just don't hold them longer than short term (or however long the trend lasts) because they tend to decay over time. Right now, I'm watching TZA, looking for a good entry point.

Seems very futile. If it makes sense to place bets on the market going up then surely betting on the opposite is quite natural as well. It´s only healthy for the market as it adds volume and liquidity and contrary opinion.

They´re desperately trying to revive the collapsing commodities bubble in the face of extreme oversupply of about everything and diminishing global demand. All the while they need to keep stocks from collapsing. No wonder there´s extreme volatility. Then there are US govt. bonds and notes priced at a 60-year high and conversely at a 60-year low yield. How they figure out this deflationary mess will be a sight to see for sure..

Interesting technical stuff from briefing.com


3:00 pm : Steep losses in recent weeks have taken down the S&P 500's 50-day moving average to about 1285-1286, which puts it in touch with its 200-day moving average. In turn, it is likely that the stock market will soon form a Death Cross. The ominous sounding event occurs when the stock market's 50-day moving average closes below its 200-day moving average.

July 2, 2010 was the last time a Death Cross was formed by the S&P 500. It developed after the stock market had fallen about 17% off of its April peak. The latest stretch of weakness has already taken the S&P 500 down about 19% from its May high of 1370 to its recent low of 1101. Analysts at Briefing.com have identified 18 Death Crosses since 1970. Of them, 10 saw the S&P 500 stabilize around the time of the cross and generally trend higher. DJ30 +135.47 NASDAQ +16.63 SP500 +7.65 NASDAQ Adv/Vol/Dec 1325/1.69 bln/1255 NYSE Adv/Vol/Dec 1925/850 mln/1100

reply to post by galdur


in other words, there's a 50% chance of it going up and a 50% chance of it going down.

the charts don't lie

reply to post by Crakeur


Still better odds than a casino, right?

I´m a little suprised noone mentioned this one...

Jefferson County Commissioner Says 80% Chance Of Chapter 9 Bankruptcy Filing

With ES trading at 45% below average volume for this time of the day (read: massive explosion on vapor volume as is de rigeur), we doubt anyone is actually trading or will notice this, but for any carbon based forms out there, the latest news on Jefferson county may be just a little notable: There is an 80% chance that Jefferson County, Alabama, officials will vote to file for Chapter 9 bankruptcy today, Commissioner Sandra Little Brown said before the panel was set to meet to consider the option. Is this just posturing to force the creditors to agree to the debtor's terms, or an actual reflection of the truth, we shall fund out this afternoon, when the meeting ends and the standstill expires.

Follow The Jefferson County Chapter 9 Negotiations Live

Edit: Just finished. Seems like the Vote is beeing delayed or something. Meh

It's all still quite interesting that the global currency is about 500 times smaller than the money we owe

Originally posted by Crakeur
reply to post by galdur

 

in other words, there's a 50% chance of it going up and a 50% chance of it going down.

the charts don't lie

I believe that we are in a secular bear market that started in 2001 after the big run-up from 1982.

The cyclical bull within this bear was fading on diminishing volume until recently. Violent counter-trend rallies are a prominent feature of bear markets.

Originally posted by OuttaTime
It's all still quite interesting that the global currency is about 500 times smaller than the money we owe

Good point! does that include book entry money for all the loans etc? Got any links with figures etc.?

The return from 1982 to 2001 was a whopping 666$ so there´s a lot still of backing and filling to do.

Terror hollywoodshows and war schemes have prolonged this market process. Not to mention stupendous financial fraud. Wall Street traditionally appoints the Secretary of the Treasury. That´s basically Goldman Sachs.

Google

goldman sachs warehouse business

So any updates?

reply to post by majesticgent


Gold is not in a bubble.

Gold is going to go ballistic into the 3000's before it can be called a bubble.

You have also to remember that while Gold is going up, the value of the Dollar is going down.

I am more concerned about the inverse bubble that Silver is in, according to normal ratio's between Gold and Silver,Silver should be around $130 Dollars an Ounce.

I would like to know, who it is that managed to suppress the price of Silver this past week.

Instead of going up, it actually collapsed, WTF ???

Seems to me we are about to enter an economic world war, the French Market will be mugged this week as forces seek to downgrade credit ratings across Europe.

Can't wait to see things unfold on Sunday night, what's that Chinese saying ? Every crisis has an Opportunity.

Cosmic...

reply to post by hawkiye

Since then, derivative trades have grown exponentially, until now they are larger than the entire global economy. The Bank for International Settlements recently reported that total derivatives trades exceeded one quadrillion dollars

From this link which also explains the CDS bubble pretty good,
And from the New York Fed Reserve website

As of December 2007, currency in circulation—that is, U.S. coins and paper currency in the hands of the public—totaled about $829 billion dollars.

There is about $829 billion dollars of U.S. currency in circulation; the majority is held outside the United States.

And from the Fed Reserve July 2011 chart it shows $970B in actual currency.

I'm still poking around for the total amount of global currency in circulation, but I 'think' it is somewhere in the neighborhood of $15T, which is still way short of covering that Quadrillion dollar debt/CDS bubble. It's a banker's paradise and a taxpayers nightmare.

I like this article on ZH with particular reference to the citations from Morgan and Stanley below.

Recessionspotting: "You Are Here"

Arguably if there were a recession next year the decline in risk assets would be larger than usual. Investors may be unsettled by two related factors. First, the limited policy options for policymakers. Conventional policy tools are near-exhausted in major developed economies. Moreover, there seems to be political, institutional and market obstacles to aggressive use of unconventional policy tools. Ultimately they may come – the bigger the crisis, the bigger the response – but they may only come after there are very significant asset market losses.

Second, a recession next year would increase deflation risks in developed economies. This is partly a matter of inadequate policy response. But the more important point is that the developed economies would enter recession with the lowest nominal GDP growth rate seen entering recession, so nominal GDP contraction would be a larger-than-usual threat. Falling nominal GDP with elevated debt levels is the deadly debt-deflation combination of the 1930s. We are not forecasting such an outcome, but it is a significant tail risk, and one that could lead to a larger-than-usual setback in risk assets.

And TD's interesting interpretation....

Translation: we are on the verge of the biggest deflationary market collapse since the 1930s, which will, inevitably, be followed by the most powerful (read fiat dilutive) central bank response in history.

All those gloating that hyperinflation has not set in yet... give it a year.

This Week Market Manipulation Watch

Link 1

Asian stocks rose following the longest series of weekly losses since June after U.S. retail sales increased by the most in four months and Japan’s second- quarter gross domestic product beat economist estimates.

“People had been worried about the U.S. economy over the medium term, but after retail sales and an earlier jobs report exceeded estimates, people’s fears weren’t amplified,” said Kazuhiro Takahashi, a general manager at Daiwa Securities Capital Markets Co. in Tokyo. “There will be some buying in exporters and large-cap stocks.”

Link 2

Mr. Bull has some catching up to do:

[atsimg]http://files.abovetopsecret.com/images/member/761c2c039be9.jpg[/atsimg]

I think the market is bearish. Friday´s move was less than convincing. Volume was low.

I expect this week to be down.