DOW falls 1100 points

[AdamoMucci]

Happening
-4.6%

 

 

Edited February 5, 2018 by AdamoMucci

[AdamoMucci]

Was down 1500 at one stage. 2300 from high. About 8%. Bitcoin 7k from 19 or so. Property faltering. Carrillion, Capita. Happening.

It fits as well, all we have been hearing is how things have turned round and everyone is confident.

Edited February 5, 2018 by AdamoMucci

[ftb_fml]

Wow - that looks significant.

As you say all the pieces are falling into place and it's increasingly looking like the beginning of the (another) end.

Roll on the global super-correction

[oatbake]

Sky calling it a "bloodbath". Largest points hall in history! :-o Feeling like 2007/2008 all over again!!

[Ah-so]

It is not just the stockmarket - this is just the minor bit that gets all the publicity. The action is on the bond markets and yields have been soaring. 

A couple of months ago almost any asset was making money and now they are all losing money.

 

[BudoBear]

Yep, that's all folks!

I think this is the beginning of the end.  This is the crash that was meant to be a decade ago, and it is going to be like a bungy jump into a black hole, without the harness that attaches one to the elastic.

It started stateside last friday, well to be honest it started back in 2007, and I predict the contagion is going to be fast and deep.

Grab popcorn, or pickled egg, hold on to your hats and enjoy the ride!

May you fare well through this tumultuos time.

bB

[Funn3r]

How many times have I thought right strap down buckle up this is IT, but then next week we are back to Foxtons up 6% and MSM headlines of houses only gone up 3% this week but better times to come rsn. My nerves won't take much more  Bring it on ffs.

[Bsmf]

Down 5% today

Up 6% next week, it's A rigged game

[SavingBear]

9 minutes ago, Funn3r said:

How many times have I thought right strap down buckle up this is IT, but then next week we are back to Foxtons up 6% and MSM headlines of houses only gone up 3% this week but better times to come rsn. My nerves won't take much more  Bring it on ffs.

THIS

I am 100% with you Funn3r

Please let this be IT. 

[Kosmin]

It's a big points fall for the Dow, but it's only fallen back to the level it reached at the end of November.

The falls in Europe could be much worse (FTSE 100 closed at 7335 and DAX at 12687, but fell much further in after hours trading - 7017 and 12050 respectively. Currently trading around 7100 and 12200, which would mean 3-4% down at the open tomorrow).

[A.steve]

There's only one question that, I think, matters:  Will the central banks intervene to prop-up asset prices?

Intervention would be wildly unethical. Non-intervention could result in effects more exacerbated than could previously have been entertained.

[koala_bear]

2 hours ago, oatbake said:

Sky calling it a "bloodbath". Largest points hall in history! :-o Feeling like 2007/2008 all over again!!

I only caught up with the news after the market closed, I remember watching Bloomberg the evening of the previous biggest fall thinking I probably would never see a fall that big again. OK this one is bigger in points terms but the previous one was larger in % terms.

[GreenDevil]

Don't worry the central banks will be buying the dips to save us.

[maverick73]

Moving towards normalisation, means healthy corrections... if you buy into the jazz ?

[nome]

I thought it was game over for the ftse100 in Feb 2016... and look how that turned out.

[GrizzlyDave]

This might be a temporary back fire. Don’t wet your panties just yet folks.

[Ah-so]

Nikkei 225 down nearly 5%.

But dramatic as it may all seem, it is only a reversal of a few months. This is also a panic being derived from the fear that funding costs are rising sharply - bond yields are rising sharply.

This will increase the cost of funding mortgages, resulting in higher mortgage rates.

[adarmo]

7 hours ago, A.steve said:

There's only one question that, I think, matters:  Will the central banks intervene to prop-up asset prices?

Intervention would be wildly unethical. Non-intervention could result in effects more exacerbated than could previously have been entertained.

 This is what i overlooked in 2008. 

Interest rate rises around the corner? What better way of kicking that down the road than a cheeky crash. 

[Pop321]

There are asset bubbles everywhere and interest rates are nailed to the ground. 

The suggestion that rates may rise has seemed inconceivable for many.....my man in the know definitely was predicting no rises this year....but this is shaking that belief. There is a real fear that if rates rise then stocks, property and even the dark art of Bitcoin (Bitcoin I know nothing about) will tumble. If it only tumbles back to where it started say 4 years ago then that will be enough for some real repercussions and forced sales. 

We are not over the edge yet....but we can see it.

If banks intervene again then I see it as though we are in an old bus travelling up a mountain on a single track and no safety barrier. The longer we stay on this track (with QE and low rates) then the higher the fall. 

[GrizzlyDave]

How’s Deutche Bank doing?

[payoyo]

11 minutes ago, TonyJ said:

They are talking about Credit Suisse's short volatilty ETF being liquidated, which means the bank could need a bail-in by investors, or it will go under. ZIRP and QE have made the financial system so fragile that a modest correction on the DOW could bring down a major investment bank. Anyone for more QE and low interest rates?

It will be an interesting few days ahead to see what contagion spreads. This much investment in ETFs, leveraged and short instruments has not really been tested in a market crash situation. Investors are left unsure of the actual values. If it starts a snowball could wipe out those who suddenly find themselves unhedged.

[Slimline]

Let's see if we can get a sub 7K close, that should shake some feathers.

[Pop321]

10 minutes ago, TonyJ said:

if this episode shows that QE and low interest rates have exacerbated problems, I doubt more QE and negative interest rates will be the authorities' knee jerk response. They will need to keep raising rates and to forget about yet more QE. Property prices will suffer, and I cannot see a bail out coming.

We are in the same page and hope you are right....this could be the turning point  

I have a little more faith in the authorities stupidity and selfishness with QE etc. They may squeeze for another year or so....but there will be a time when there is nowhere to go and the bus slips over the edge. 

Pop ?

[suresh786]

Nikkie225 is down this morning -4.73%

[regprentice]

Quote in this morning's guardian

There’s genuine carnage out there,” Chris Weston, chief market strategist at IG in Australia told the Washington Post."Everyone is just running for the hills because nobody actually knows what is causing this move."

So no one knows why the drop (outside the us) but are selling because they see others selling. Sounds like market contagion...sounds like a crash in the making.