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Bangladesh Stocks Plunge By More Than 10% For Third Time In 2011

Submitted by Tyler Durden on 02/07/2011 09:24 -0400

Bangladesh investors just can't catch a break. After the Dhaka stock exchange dropped by 7% in December 2010, leading to widespread rioting and mostly looting, this was subsequently followed by two other market crashes in January both of which were about 10% in magnitude. Today, third time for 2011 may or may not prove to be the charm for the DHAKA, after overnight the stock exchange was in a 10.3% free fall. It is about time Sack Frost hold seminars to the less than developed nations, and teach them just how to deal with that phenomenon, which the WHO recently declared as extinct, known as selling, on those rare occasions it does flare out despite inoculations to the contrary. And while stock market induced rioting comes and goes as margin lenders realize that money is long gone, it is nothing compared to what may happen should the Rough Rice rocket continue taking out all highs. And one look at today's grains and softs futures demonstrates just what happens to commodities nominal prices when the Chairman refuses to allow even one down day in stocks.

In the meantime, for all our Bangladeshi readers, we hope you have taken your dramamine.

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Mon, 02/07/2011 - 09:27 | 940249 gwar5

The Bangladesh Market Riot Index does not lie. Turmoil ahead.

Mon, 02/07/2011 - 09:28 | 940252 Commander Cody

BTFD. It's all good.

Mon, 02/07/2011 - 09:31 | 940254 SashaBelov

Yes, 10% dip in S&P would be also healthy :)

But after all, who needs food in USA, just dont let Netflix to raise subscription prices and I'm 100% confident there will be no inflation.

Mon, 02/07/2011 - 09:32 | 940257 firstdivision

BTFD!!!!!

Mon, 02/07/2011 - 09:38 | 940261 hugovanderbubble

Emerging Markets = SAFE? let me laugh¡¡¡¡

Mon, 02/07/2011 - 09:39 | 940262 Thomas

Hard to get excited about this one.

Mon, 02/07/2011 - 09:40 | 940265 firstdivision

Emerging mkts are as safe as nflx...which is getting some serious buying by the IBs in premkt.

Mon, 02/07/2011 - 09:44 | 940267 Bigger Dickus

Boy, do I feel like and idiot for having advised my family to pull their money out of the market and put it into cash and commods.

I'm on the verge of a nervous breakdown here watching the SPY go up every single freakin day.

Mon, 02/07/2011 - 09:48 | 940279 Commander Cody

Apt screen name? :)

Mon, 02/07/2011 - 11:02 | 940392 shortus cynicus

I assume, by cash you mean gold and silver.

So gold, silver, commodities - so why are you nervous ?

Mon, 02/07/2011 - 12:39 | 940693 Hephasteus

Ya bigger dickus is the Head of the family.

By family do you mean frat house?

Mon, 02/07/2011 - 09:47 | 940275 Commander Cody

Misplaced.

Mon, 02/07/2011 - 09:52 | 940278 Bill Lumbergh

If I recall correctly the RTS (Russian market) was breaking down big time before the 2008 implosion elsewhere...of course with POMO injections seemingly hourly this may just be another bump in the road to higher prices.

Mon, 02/07/2011 - 11:13 | 940433 shortus cynicus

I have a theory, more speculation, that emerging markets plunges first because foreign smart money is leaving first from small and "sensitive" exchanges before they start selling big ones.

My conspiracy instinct says me, that our master decided to slow QE2 down, allowing correction in S&P or even commodities, so anyone being good connected prepares accordingly.

Mon, 02/07/2011 - 09:48 | 940280 nudedude

This is huge, run for the exits...........yawn.

Mon, 02/07/2011 - 09:49 | 940281 Id fight Gandhi

Whatever you believe in life, one thing is for sure, balance. Eventually the equal and opposite will appear. Most likely we will see the most violent sharpest drops in stock market history.

We just cannot have every single day boner up day. Not even profit taking. No price discovery.

Mon, 02/07/2011 - 09:56 | 940286 virgilcaine

The canary in the coal mine.. the emerging mkts and the bdi, euro.

Mon, 02/07/2011 - 09:53 | 940289 HoofHearted

Wasn't it the Bangladeshi market that was going to take traders who sold when the market was going down out back and shoot them? We may see some 1929 style "suicides" if this keeps up.

Mon, 02/07/2011 - 09:56 | 940296 Downtoolong

How do I hedge this? Will Goldman Sachs write me a swap on the Bangladesh looting index?

Mon, 02/07/2011 - 10:03 | 940308 onarga74

Bennie and the Jets have to keep things together. Get ready for Bangladesh Easing 1.

Mon, 02/07/2011 - 10:05 | 940311 Double down

A 10% dip would be confusing

Mon, 02/07/2011 - 10:09 | 940314 Sudden Debt

Maybe they should also install that "app" like the one installed on the Nasdaq servers?

IT DOES WONDERS AGAINST FLASH CRASHES!!

Mon, 02/07/2011 - 10:12 | 940320 Bigger Dickus

The euro is down and the fucking indices are going up?

Anyway, the divergence between eur/usd and stocks and brent WTI crude mean one of three things:

1)the ECB is busy buying bonds and STOCKS

2)Money velocity is increasing rapidly and we could face a hyperinflationary collapse overnight

3)Stock longs everywhere are about to have their asses handed to them

Mon, 02/07/2011 - 11:05 | 940404 dbach

We'll soon run out of greater fools. I'm suprised people (or robots) would be buying stocks that are nearing their 2007 highs. The economy was rainbows and unicorns then, aka home prices will always go up 8% yoy, 4% unemployment, borrowing to spend more than you make. Now everyone realizes those things were mistakes and we are paying for it now, cept for the market.

Mon, 02/07/2011 - 10:13 | 940321 onarga74

Maybe this is a good thing and we can get something going here. It would save the VIX from being mothballed since it's no longer relevant.

Mon, 02/07/2011 - 11:01 | 940387 KnowIDontKnow