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The Masked Tulip

Dow Had A Bad Day

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Nearly 200 points down on the start.

http://online.wsj.com/article/SB10001424052702304259304576377970959834268.html?mod=googlenews_wsj

Friday's stock market plunge knocked the Dow Jones Industrial Average below 12000 for the first time since March, sending the index to its sixth consecutive weekly decline, its longest losing streak since 2002.

The blue-chip swoon, which pushed the average down 172.45 points, or 1.4%, to 11951.91, was fueled Friday by fears of continuing U.S. economic weakness, as well as growing signs that Greece will prove unable to repay its debts and worries about slowing Asian growth. The Nasdaq Composite Index, which has been buoyed by technology shares, shows a small decline for the year.

Edited by The Masked Tulip

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And not a Black Friday thread in sight.

Stock trends have gone firmly in reverse over the past 14 days. I think this is the start of a long term slide though I don't expect it to get its legs until the Autumn. BTW the process will probably be steady and remorseless attrition over a number of quarters not one massive crash as some expect.

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And not a Black Friday thread in sight.

Stock trends have gone firmly in reverse over the past 14 days. I think this is the start of a long term slide though I don't expect it to get its legs until the Autumn. BTW the process will probably be steady and remorseless attrition over a number of quarters not one massive crash as some expect.

never mind Greece, the USA is looking scary:

from the current Economist mag:

There are no signs of an agreement. Joe Biden, the vice-president, has been negotiating with Republican and Democratic congressional representatives but meetings have been hard to schedule because the House and Senate are in session at different times. It appears that discussion may not get serious until late in July, as the August 2nd deadline approaches.

At that point the Treasury warns that it will have to stop paying something, though it won't specify what: interest on the debt, or other payments such as to government suppliers or pensioners. The first would clearly be a default in the eyes of America's creditors. On June 8th Fitch, a rating agency, said such a default would trigger a downgrade of America's credit rating from AAA to junk. The previous week Moody's Investors Service warned that if August 2nd approached with no progress, it could put America's rating on review for possible downgrade.

Republicans have generally pooh-poohed the risks of default. A handful of them say they would actually prefer it to unchecked spending. Many also claim that the federal government could avoid default by prioritising the way it pays its bills: interest on the debt first, other things later.

Such talk frightens the administration. Mary Miller, who manages the national debt for the Treasury Department, says picking and choosing among which of the government's bills to pay would be an "operational nightmare". More important, she says it could send such a negative signal about America's financial governance that it could make the markets inhospitable to American debt. In August the Treasury must not only raise well over $100 billion to finance the deficit, but refinance more than $500 billion in maturing debt.

The impasse over the debt ceiling has yet to affect the bond markets: yields on government debt have actually dropped as the economic outlook has turned gloomier. Moody's, for one, says it "fully expected political wrangling". But, it added, "the degree of entrenchment into conflicting positions has exceeded expectations." In such a situation, as historians know, accidents can happen.

USA govt bonds could be junk by the autumn. sheeeeeeeeeeeeeeiiiiiiiit.

Edited by Si1

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Meltdown Fryday- China Says U.S. Is Defaulting Already; Ohio Restaurant Closes After 70 Years In Business After Obama Says TARP Indirectly Helped That Restaurant; LinkedIn Licks Investors; Fukushima Fryday: Expert Says Japan May Become Uninhabitable; Work At Reactor 3 Stops As Radiation Too High; One Worker Already Unconscious; Much More

http://fiatsfire.blogspot.com/2011/06/meltdown-fryday-china-says-us-is.html

Another day, another round of grenades are launched - but we're not talking about an attack taking place in the Middle East, nor are we talking about physical grenades. Rather, today's attack came in the form of a more silent, but just a deadly launch by the only Chinese ratings agency that issues sovereign ratings.

Today, Dagong accused the United States of defaulting on its massive debt, saying, "in our opinion, the United States has already been defaulting." Notice the use of the present tense, "has already been." Well, duh! #winning! Perhaps, this ratings agency is still a little slow to recognize what is really going on here and in Europe (Dagong only downgraded U.S. debt last November and only downgraded Greece last week).

The U.S. financial system (and by extension the EU and U.K. financial system as well) is crumbling from the inside out. The handwriting is on the wall, so to speak, and the fact that the middle class is being (notice the tense) decimated while the top banksters earners make more than ever is a signal.

It should be alarming to everyone with even the most rudimentary understanding of finance, that something is seriously broken when during the worst economic depression recession the world has seen, the number of Billionaires grows by 20% and their net worth increases by $1 Trillion. We're simply stating the obvious here. Again.

Is it mere coincidence that that the world's Billionaires net wealth increased by the same amount as the TARP stimulus? Just another one of those things that makes us go "hmmmmm." Take for example, the story about the restaurant in Ohio mentioned last week by Obama "as an indirect beneficiary" of the government’s Chrysler bailout - which today announced it will go out of business Sunday after a more than 70-year history. You can't make this up. "Trickle down economics" is guise for "trickle up poverty."

In other news, LinkedIn, the hyped up turd internet stock which has dropped almost 50% from the top set a few days ago, and which managed to ripoff pull in hundreds of retail sheep investors, still has a P/E ratio of 1070x. We won't even bother explaining the math, but this is a perfect example of why stock investing is dead (which explains the pitiful volume across the boards - it's comical watching computer algorithms feed off one another like cannibals). Based on math (and gravity), LNKD should be trading in the $12-$19. And that, is being very generous with "growth" estimates.

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Things are looking very bleak across the pond. Case Shiller confirmed the worst fears for a renewed slump in US housing with a disastrous -4.2% crash for Q1. But Shiller went further and stated he considered a further 25% slump a possibility in view of the huge amount of empty stock. This scenario would be a disaster for world banking having loaded up on CDOs and more worryingly credit default swaps. In the economy generally the issue of sovereign default is again being muted. The country simply can't stand on it's own two feet without borrowing or QE. The launch of QE3 is looking inevitable, because things are looking ugly once the Emperor stands without clothes.

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never mind Greece, the USA is looking scary:

from the current Economist mag:

USA govt bonds could be junk by the autumn. sheeeeeeeeeeeeeeiiiiiiiit.

AAA to junk at hyperspeed. Good to see the rating agencies on the ball. So junk status gets confirm after a default?

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Things are looking very bleak across the pond. Case Shiller confirmed the worst fears for a renewed slump in US housing with a disastrous -4.2% crash for Q1. But Shiller went further and stated he considered a further 25% slump a possibility in view of the huge amount of empty stock. This scenario would be a disaster for world banking having loaded up on CDOs and more worryingly credit default swaps. In the economy generally the issue of sovereign default is again being muted. The country simply can't stand on it's own two feet without borrowing or QE. The launch of QE3 is looking inevitable, because things are looking ugly once the Emperor stands without clothes.

It's sounding more and more like the Weimar or the French Hyperinflations of during the 1700's.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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