S&P sinks to 1119 intraday from open of 1198, a 79 point drop or 6.5%. Unreal market action. Prepare for a tough winter everybody. Bernanke will unleash the monetary heaven within days at this point.
UPDATE: Stocks close at lows of the day, right back down to 1119. If the fed folds and announces QE3 tomorrow then its off to the races with a violent snap back rally. But how much easing it will require to put humpty dumpty together again? 1 trillion? 1.5 trillion? It remains to be seen. At this point however confidence is wrecked.
What a crazy 2 weeks.
Charting the collapse in the S&P:
Debtpocalypse continues!
ReplyDeleteI think this is bad for anyone with student loans: http://bit.ly/pg0QTw
Monetary heaven coming? I agree... How might QE3 affect those with student loans?
depends on what happens with the US currency. If we suffer hyperinflation then all borrowers will be debt free. If we have stagflation then it will be hell.
ReplyDeleteWell, that's IF you can get a job. Keep in mind that wages almost always lag inflation. If hyperinflation, then this will hurt all those social security suckers and people on fixed incomes. It will help me out since I owe a lot of money. Myself, I don't expect to get anything from social security - maybe enough to buy a candy bar. I would be willing to forego all social security monies RIGHT NOW if my student loans would be wiped out. People will look back on the social security issue and realize it was the biggest Ponzi scheme ever perpetrated on mankind.
ReplyDeleteWait why is social security a ponzi scheme? It's insurance! Has it been underfunded over the years? Of course, but that makes it no different than ANY other government program. Also, Greenspan looted it in the 90s. The level of ignorance and idiocy in the United States is nothing short of amazing
ReplyDeleteDow futures were down 55 in the first 5 minutes of the open in Japan & Korea markets. Two minutes later,into the Asian opening and Fair Market futures are down 106 on a steady decline.
ReplyDeleteNo matter the outcome of tomorrow's market close, the GOP, teabaggers and their leaders including Jim DeMint and Michelle Bachman are clearly the equivalents of Timothy McVeigh. They threw a Molotov cocktail into the US financial markets and its economy without an exit plan or thought of the consequences.
Time,
Confidence -- check
Financial contaigon -- check
End Game -- proceeding.
This has all the makings of the beginning of a World War.
Yesterday, I saw an interview with Greenspan on the Boob Toob.
ReplyDeleteGreenspan said: "It is impossible for the U.S. to default on its debt because the U.S. can print an infinite amount of money to pay its debts."
Think about it: U.S. dollars are "debt notes" issued by the Federal Reserve in exchange for Treasury Bonds issued by the US Treasury. Greenspan is, in effect, saying that the U.S. can never be unable to pay its debts as they come due (i.e., bankruptcy) because the U.S. can issue even more debt to cover the existing debt.
Financial diarrhea.
They've all gone MAD....
Will the US debt downgrade result in higher interest rates?
ReplyDeleteIt looks they're getting ready for the 2012 Olympics in London?
ReplyDeletehttp://www.london2012.com/
Thanks for writing this
ReplyDelete