2011 Global Stock Market Collapse Watch

The social programs will continue to balloon. This is a demographic certainty. The baby-boomers are starting to retire and it will be a virtual avalanche in the next decades. Apart from the fact that looking-forward contingent federal social security obligations are unfunded there´s also another demographic bomb ticking - the x-geners, the generation that is supposed to support the baby boomers, is one third fewer than the latter and to boot mired in debt and out of jobs as it is.

Now, how do you keep this mess going?

It´s difficult to point to solutions when you´re heading into a brick wall at 100 mph and it´s too late to start braking.

But still something must be tried.

The U.S. economy is about 70% based on consumer spending. So, you probably don´t want to cut social security much. The poor obviously spend most of their income. This supports businesses and jobs. In this situation you want to try preserving at least the status quo of the many.

What I would present as an emergency 5-year plan now is a $2 trillion cut in defense spending. This comes to $400 billion/year. This should be spent on repairing America´s crumbling infrastructure, undoubtedly creating millions of jobs and spending and having multiplier effects on economic activity and jobs across the economy. The only losers in this scenario would be weapons manufacturers and other peddlers of war, destruction and suffering..

Funny shift:

Chicken scurry out of Capitol and Pentagon as earthquake hits Virginia. All I can say is LOL. Breaking.

About he whole system is tired of the war business. Destruction isn´t viable as an economic model. You got to produce.

I´m pleased that an EQ underscored my points on this thread. It´s a very good sign. Anything to shake up their heads.

As for the market activity today this continues to be in bear territory.New highs 42, new low 320., very tepid volume. It´s a very damaged market. It may end up this week on a bear bounce though..

What do you guys think would happen if Bank of America went bankrupt?

Originally posted by mossme89
What do you guys think would happen if Bank of America went bankrupt?

They already are they are living in bailout money and will get more...

Originally posted by mossme89
What do you guys think would happen if Bank of America went bankrupt?

bankrupt... no sir-ee... bur
Insolvent might be the end-game... they have too much money & creative 'double books' to go bankrupt (per se)

they have the assets of toxic waste that the FED will eventually redeeem from them, they also have the assets of Murrell Lynch & CountryWide to fudge the books with.


its no longer a black-white fiscal world out there... & BAC is a primary lender/market-maker enterprise

reply to post by mossme89


The market is clearly marking them down to zero. This happened recently to C and they had a one for ten reverse split to try to prolong their existence. They´re down already 40% on their new worthless stock. BAC will most likely go down the same path, reverse split in the hope of defrauding out new stock.

wanna know whats valuable on the stock market?


"quake"

nothing too see here,,

KEEP TRADING!

ohh wait ,,

I just stumbled onto a few interesting pages showing the market stats from around the world. Link here. It shows world market stats and is a bit configurable. It's quite interesting to see the remarkability of how these folks can brag about our 'recovery' after seeing these figures.
The whole site is full of most any statistic you would need. Link to homepage. Some of them are pretty disturbing
Apparently the USA has the same Govt Budget as Greece, but when you click on that identifier, look at who are in the top 5. And the Debt to GDP button (click twice to go from highest to lowest). Check out who's in the top 10.
How can the 'superpowers' sustain such an inept system legally? Well, you can't. But if you write your debts off into the public sector, the govts don't share the load. But wait. Isn't the Federal Reserve part of the IMF? We should be brimming with cash, but alas, most of our currency is being held overseas. I wonder why.....

Overissued stock watering scams eventually end in reverse splits. DJIA obvious candidates is the corpse of BAC as well as CSCO, MSFT, INTC, GE. this overissued junk is all down 60-80% over the last decade.

If I have to buy (Treasurys) at a zero percent yield, I will. I don't like it, but we'll do it.

.Buffett

www.cnbc.com...

That´s how the super rich perceive the value of cash in a deflationary environment. They´re happy to park it safely at almost zero returns.

Most asian markets seemed to have closed in the red today. Not much but still, given the rallying excitement over the past couple of days, I guess it had to subside.

According to the buzz it seems that the FED will shift its govt. bonds portfolio from short to long, that is target the longer-end of the yield curve. This would be in accordance with their statement “economic conditions are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013.” So, no QE3 just shuffling of assets.

From the weirdo department:

[atsimg]http://files.abovetopsecret.com/images/member/a2f511374c6e.jpg[/atsimg]

reply to post by galdur


I find it odd that the Europe and US (NATO) markets are doing better than expected. I'm guessing it has something to do with the Libyan gold. Gold drops over $100/oz in 2 days? 140 tons would definately devalue spots. But it's also 140 tons that is now subject to Fractional Reserve Banking. BernankeNomics is a massive bubble.

reply to post by OuttaTime


Not sure about Europe but I think those markets have all hit a 52-week low recently, some even 2-year low. So, it could be a technical snap-back.

As for gold, that is seriously overbought and needs a healthy correction. The 50-day moving average is at 1650 and the 200-day at 1500. The trend is most likely up though I think. Time will tell.

Sorry I have not posted here in awhile. The situation has pretty much stayed normal with the US/Euro markets. Yesterday some "good" news out of Libya and the stocks rise a little bit. Even after the Earthquake! I was very shocked by that. Today they are not so good.

I wonder how much of a sell off we'll see in gold? It dropped below $1900/oz today. Was that the max ceiling? I'm wondering if more people will start to sell some of their gold to maximize their profits before and keeping some for security purposes.

reply to post by majesticgent


I´m not a gold fan. I think it´s practically useless. What industrial and jewelry use there may be, probably could justify a price of couple hundred bucks.

It is interesting from a technical standpoint. The trading for the past five years hasn´t really been that bubblish, except maybe the last recent weeks. This market goes from 600 to 1500 five years to last June. That´s 150%, a nice and gradual move. Only one major correction though over the period, about 20% in 2008-9.

I think this market is a little ahead of itself and it would be healthy for it to check out the 1500 level which is the important 200-day MA.