GM layoffs and plant closures exactly on the 10 year cycle, watch your money

So the GM announcement of plant closures and layoffs comes literally on the ten year market cycle.

Financial Blog

The 10-year cycle is unique among the Kress cycles in that it’s one of the few cycles whose peak is not a separate cycle. When other cycles in the Kress series peak, the half-cycle component forms a distinctive cycle by itself. For example, when the 4-year cycle peaks the 2-year cycle bottoms simultaneously; and when the 12-year cycle peaks the 6-year cycle bottoms. Since there is no 5-year cycle in Kress cycle theory, the 10-year cycle peak is a true peak.

Kress Cycles

Cycles are one of the most fascinating yet misunderstood aspects of the financial market. With the right cycles a trader can increase his earning potential in the stock market. Aside from providing correct entry and entry points into the market, cycles also allow insight into the underlying state of the economy.

60 Year Kress Cycle

Another facet of the 60-year cycle is interest rates. Interest rates have remained at or near multi-decade lows since 2009 with the deflationary cycle in its “hard down” phase. This has also made it much easier to facilitate financial engineering. One of the primary motives behind the Fed’s Quantitative Easing (QE) policies that began in November 2008 was to keep interest rates artificially low in order to decrease the cost of debt servicing and to help resuscitate the housing market. The Fed has begun tapering the scale of its asset purchases to the tune of $10 billion/month with plans to completely end QE by the end of this year. The Fed then plans to unwind its $4 trillion balance sheet and allow interest rates to steadily increase.

In answer to the first question, the odds are low that the coming final descent of the 60-year cycle into October will be extremely troublesome for the financial market. The long-term Kress cycle theory promises at least one major crash – the type that occurs maybe once every 60-80 years – during the “hard down” phase of the 60-year cycle.

I've been watching these issues closely the last 2 years. I learned a lot about the market during the 08 crash and honestly I learned a lot of from the market watchers who used to consistently post on ATS and then took the reigns from there.

Auto bailout Wiki

By April 2009, the situation had worsened such that both GM and Chrysler were faced with imminent bankruptcy and liquidation. With the intent to prevent massive job losses and destabilizing damage to the entire manufacturing sector, the U.S. and Canadian governments provided unprecedented financial bailout ($85 billion) support to allow the companies to restructure and jettison legacy debt via Chapter 11 bankruptcy. Both companies separately filed for this protection by June 1.

GM plant closures

GM thinks layoffs will boost its bottom line. The reality is more complicated.

Ok. GM stock is up which is understandable as selling off assets and laying people off should initially increase their bottom line.

Jerome Powell

Fed Chairman Jerome Powell quelled market unrest last week when he couched his description of where the central bank's benchmark interest rate is relative to "neutral."

Neutral to me = position of uncertainty. There are several economic indicator's which I've detailed in these threads;

Amazon stock volatility
Mini Recession Continues
Market Headed Towards Recession
Apple stock bear market on low Iphone sales numbers

If you have a 401k or pension or home, keep your eye on these issues. Please, if you contribute to this thread ADD VALUE by backing your point of view with information. Otherwise I can't trust your platitudes or anecdotal evidence. You cannot make an argument without data when it comes to financial markets. Weather you agree with me or not has nothing to do with using information to back your point view.

Otherwise no one can learn from you.

a reply to: toysforadults

Hmmm...

The more you know, the more you can profit.

Thanks for the interesting read. It is definitely something to ponder.

I was in the 1989 market crash. So all this stuff is real. It does last for about 4 years and then the economy starts to slowly get back into improving.
One thing this does is that it affects the highly inflated housing market, but this time around as we all know, labor and building materials are not the same price as it was in 89. A big loss for everyone.
The thing is now, there are just too many people on govt. assistance and that gives a false sense of an inflated economy with no "guts" to improve.

a reply to: muzzleflash

Yes exactly. Get the cycles down, understand the Fed and inflation and profit long term

a reply to: musicismagic

WAY to many people on social welfare programs. Then what's left of the entire working class makes $20 an hour less and the average welfare benefits pay 21+ an hour.

www.forbes.com...

money.cnn.com...

So 86 million people make less than what the equivalent living off the government would provide. So out of 150 million people actually working more than half of them are essentially living the same as people on welfare

a reply to: toysforadults

You cannot predict anything with all of the misinformation out there. I cannot even rely on my old fear porn anymore.
banyanhill.com...

V.S

www.wesmoss.com...

originally posted by: toysforadults
a reply to: musicismagic

WAY to many people on social welfare programs. Then what's left of the entire working class makes $20 an hour less and the average welfare benefits pay 21+ an hour.

www.forbes.com...

money.cnn.com...

So 86 million people make less than what the equivalent living off the government would provide. So out of 150 million people actually working more than half of them are essentially living the same as people on welfare

Welfare is nothing but a trap for the uneducated.
Welfare is an easy life style for those that hone their business skills and work for cash "under the table".

a reply to: musicismagic

well, 60% of jobs pay less than welfare so what are you going to do? blame people for seeing that working gets you less than not working?

it's simple calculation

a reply to: infolurker

yeah the central banks are really working hard to keep the market from imploding

originally posted by: muzzleflash
a reply to: toysforadults

Hmmm...

The more you know, the more you can profit.

Thanks for the interesting read. It is definitely something to ponder.

pretty soon I wanna start digging into the Forex market, that one scares me though

Buy gold.

a reply to: JBIZZ

silver is at $14, you see that?

a reply to: toysforadults

Why the economic system will collapse


How Can S#it Not #it The Fan?

a reply to: toysforadults

So this happens and then what ? People will finally be in the streets pissed off or what ?

a reply to: toysforadults

Yes, I believe gold and silver are bargains right now but who knows with all the paper trading. I read an article which said there are @ 300 ounces of paper gold for every ounce of physical gold. I think they use tools like this, as well as, cryptocurrencies to absorb the inflation of the money supply from QE & maintain the value of the dollar. So who knows what the true value of anything is.

a reply to: threeeyesopen

American's? no they are docile and focused on the color of someone's skin and not the actual real problems

General Electric is in trouble now too.

a reply to: JBIZZ

oh yeah I forgot about that, been ignoring that one

I wouldn't worry to much. Giving the wealthy the biggest tax break will eventually trickle down to the working man and the economy will be robust and vibrant soon as people buy new things. It's always worked in the past....

a reply to: olaru12

I think that's the basis of the problem. consumer based economic system that rewards the wealthy people

it's a backwards system that has no respect for anything but money and power. life, humanity, the wonderful experience of being earth none of it matters. no appreciation for anything

it's a giant destructive scheme thought of by psychopathic killers who rule the world through the banking system