Author Topic: Panic continues (Read 4563 times)

Matthew · « **on:** August 23, 2015, 11:39:43 PM »

DOW futures are already down 390 points!!

Asian markets suffered major losses on Monday, extending a sell off that has touched nearly every corner of the globe.

The benchmark Shanghai Composite opened dramatically lower, shedding 8.5% in early trading and wiping out all gains made this year. Many companies listed in Shanghai, including some large state-owned firms, fell by the maximum daily limit of 10% within the first hour of trading.

The smaller Shenzhen Composite also declined more than 7.5%.

In Japan, the Nikkei was 3.2% lower in early trading, and Australia's ASX All Ordinaries was down 3.6%. Seoul's KOSPI Composite lost 2.5%. Asian currencies were trading lower against the U.S. dollar.

Matthew · « **Reply #1 on:** August 23, 2015, 11:43:08 PM »

X22report's recent guest pointed out that on Monday, there will be lots of "margin calls".

It's a scientific fact that the levels of "margin" or debt used by investors to invest in the stock market is at unheard-of highs right now.

So when the market drops even 5 or 7%, you have to cover your margin calls -- usually by selling more stocks!

You can see where this can become a problem -- a death spiral or vicious cycle of selling, where margin calls beget more margin calls.

It's not a question of being a doomer, trying to scare people, believing in conspiracy theories, being a weirdo, or anything like that.

It's a question of mathematics. And common sense. How can you have unending, infinite growth in a finite world? You can't.

Matthew · « **Reply #2 on:** August 23, 2015, 11:45:43 PM »

Also I would like to direct your attention to the fact that markets WORLDWIDE are all experiencing the same collapse at the same time.

This demonstrates

A) how connected the nations' economies are now
B) that if we ever had a mega collapse, it would affect ALL CORNERS OF THE EARTH

Matthew · « **Reply #3 on:** August 24, 2015, 07:11:45 AM »

390 points down was bad enough, but now futures are almost 600 points down!

Edit: OOPS, I mean 680 points. The PACE or acceleration of the crash seems to be picking up speed!

That's 4.14% down.

And NASDAQ is even worse: 5% down (crashing more than the DOW is normal for the past few days, which makes sense, since those tech stocks are bubblicious and more overpriced than most)

And ALL global markets were down sharply today, some of them about to open, some about to close, and others finished with Monday business already.

Stubborn · « **Reply #4 on:** August 24, 2015, 07:31:02 AM »

Wow, wonder when "limit down" gets tripped.

Stubborn · « **Reply #5 on:** August 24, 2015, 07:51:55 AM »

Looks like 5% is limit down. Trading stops at that point - not sure for how long though. Lots of "investors" seeing their 401Ks turning into 301k and 201Ks.

Matthew · « **Reply #6 on:** August 24, 2015, 08:26:07 AM »

Well, I hope those "circuit breakers" are all warmed up and ready to go.

With 6 minutes to the opening bell, futures are at

Dow   -793.00 / -4.82%
Level   15,674.00
Data as of 9:13am ET

But give it 2 minutes:

Dow   -852.00 / -5.17%
Level   15,615.00
Data as of 9:15am ET

Matthew · « **Reply #7 on:** August 24, 2015, 08:35:16 AM »

Aaaaaand the markets are open now:

This is bringing back memories of 2008.

Stubborn · « **Reply #8 on:** August 24, 2015, 08:59:57 AM »

Real time charts for stocks and indexes for free.

http://www.freestockcharts.com/platform/v1

A +$13.00 move from low to high on the Nasdaq ETF, QQQ in less than 30 minutes.
Incredible stuff.

Matthew · « **Reply #9 on:** August 24, 2015, 09:09:51 AM »

All hail the mighty Plunge Protection Team!

They must be firing everything they got at this pig.

it's only down 474 right now, having recovered over half of its initial loss. That isn't natural.

Stubborn · « **Reply #10 on:** August 24, 2015, 09:26:56 AM »

Ha!
You're not kidding - only down 300 now.......I just saw at it's low, it was down just over 1000 points so in under an hour, they rammed it up 700 points! Wow!

RomanCatholic1953 · « **Reply #11 on:** August 24, 2015, 10:08:06 AM »

Its the plunge protection team creating more digital money via the
keyboards of their computers.
This is on a global scale and PPT cannot bail out every bank in the
world.
Lots of this selling is margin calls. Investors whom purchase of stocks
on margin.
Unless the PPT works magic and delays the inevitable.
It means that these investor will have sell everything they have to
cover their margins. Many will end up in the poor house.
Just like 1929.
This is no correction. It is designed to get the money from
investors who are still sitting on a pile of money.
This is going to be an interesting day.
One thing, the talking heads will not tell you the truth because
their jobs depends on lying.

Matthew · « **Reply #12 on:** August 24, 2015, 11:07:14 AM »

I suppose we shouldn't get our hopes up TOO much that reality, sanity or truth will prevail.

Yes, I'm totally fed up with all the propaganda that we're in a recovery with 5.3% unemployment and all that nonsense. I can't wait until the mask is torn from this filthy lie. At least a lot of good people will stop feeling bad and depressed that there is something wrong with THEMSELVES, etc.

The whole modern world is built on a web of lies and deceit, including our money itself.

I also suppose we should be glad for the electronic printing presses, the FED, the Plunge Protection Team, if they are able to drag this fake world on for another two weeks, four weeks, 1 year, etc. because in all honestly, which of us is really ready for the crap to hit the fan?

Every week of added time to prepare is valuable. I'll take it.

Charlemagne · « **Reply #13 on:** August 24, 2015, 11:10:41 AM »

The Exchange uses a benchmark of 7% loss in S&P as a "plunge protection" threshold (trading stops automatically for 15 minutes). I'm sure Ol' Yellen will be firing up the printing presses soon. This isn't a stock market, it's a casino - and the house always wins.

Matthew · « **Reply #14 on:** August 24, 2015, 11:45:37 AM »

I should point out something else --

If any country in the world is bankrupt, it's too bad for that country and its people. Greece, for example. Their options are limited.

But the United States of America is a unique case among ALL the countries on the planet. Even if the USA is bankrupt, they can simply print more money. The USA is literally the king of the world, since it controls the World Currency, also known as the US Dollar. What other currency is tied to OIL which everyone needs? Yes, if any country wants oil, they have to hold and use US Dollars to purchase that oil. That bolsters the US Dollar, and puts the United States in a very favorable position.

If any other country printed millions of extra units of their currency, their unfortunate country would suffer instant hyperinflation. But the Dollar has much more "mass" because there is much more to back it up. So the effects aren't felt as much, or as quickly. The USA can get away with MUCH more printing press activity.

So it figures that even though many countries' stock markets are collapsing -- and continuing to collapse even today -- that the stock market of the USA will end up in the POSITIVE today, even after being down 1000 points, because "we're awesome like that" and have an all-powerful printing press that can work market voodoo.