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reply to post by Bassago
I've not been one to watch the stock market so I'll just ask. If the DOW keeps on dropping like it has been each day, seems to be about 100 or more points a day (if you have a better average feel free to use it) how many more days till it tanks and we've reached the point of no return?
In order to create the illusion that the market is good, the Fed would have to pump so much money into the market that it'd create an inflationary nightmare.
reply to post by beezzer
True, ok then how much long till the illusion can no longer can be supported?
Panic is making an enemy of telephones for Catherine Yeung, the director for equities at Fidelity Investment Management Ltd. in Hong Kong.
It’s worse in developing countries, as the MSCI Emerging Markets Index drops to a five-month low and losses in equity benchmarks from India, Russia, Brazil and Mexico exceed 4 percent for 2014.
Russia canceled a bond auction for the second consecutive week after the emerging-market rout sent yields on the nation’s bonds maturing in 2028 to record highs. The Finance Ministry scrapped the sale after “an analysis of market conditions,” according to a statement on its website.
“The optimism for Russia is long gone,” said Vladimir Tsuprov, the St. Petersburg-based chief investment officer of TKB BNP Paribas
“The companies we are looking into can still deliver attractive margins. Things are getting cheap.”
Strategists from Goldman Sachs Group Inc. to AMP Capital Investors and JPMorgan Chase & Co. are also telling clients to hang on after losses
"23 days aligns with the low end on Monday. And subsequent to that, we had a four-day rally, and then the market unraveled — went down 48%. We are currently at that inflection point. Like I said, so far, everything is aligned. We think the next two to three days are extremely critical."
Since QE Infinity turned into a pipedream in early May last year when the Fed’s taper cacophony bounced around the world, it has been a volatile mess in the emerging markets that picked up steam recently with currencies, stocks, and bonds skidding. Argentina devalued. Venezuela has become a complete basket case. Turkey, which is mired in a political and democratic crisis, including a “frantic crackdown“ on the media, jacked up its interest rates to make your head spin, in a vain effort to prop up the lira. Brazil, India, Indonesia, and South Africa are flailing about to contain the ravages. China is slowing too. And what we hear is that giant sucking sound of hot money leaving.
And these already teetering European Banks are waving mysterious balance sheets whose decomposing “assets” no one is allowed to disclose, and whose sanctity no one is allowed to even doubt.
Turns out, these illustrious banks are stuck in the credit muck with loans totaling $3.4 trillion to the emerging markets (more than four times the exposure of US banks), according to analysts at Deutsche Bank. And $1.7 trillion of this malodorous debt is on the books of just six (mercifully unnamed) European banks. If a portion of those loans default....
Emerging-Markets Fiasco To Topple European Banks
The Dow is up 190 points, or 1.1%. The S&P 500 is up 18 points, or 1.0%. Link