Market Crash

Tyler Durden's picture

JPM Head Quant Warns Second Market Crash May Be Imminent: Violent Selling Could Return On Thursday





"Price insensitive" flows are starting to materialize, and our goal is to estimate their likely size and timing. These technical flows are determined by algorithms and risk limits, and can hence push the market away from fundamentals.  The obvious risk is if these technical flows outsize fundamental buyers. In the current environment of low liquidity, they may cause a market crash such as the one we saw at the US market open on Mondaay"

 
Tyler Durden's picture

Chinese Man Jumps From 17th Floor In First Stock Market Casualty





It appears the collapse of China's stock market has officially taken its first victim. While we have heard from desperate farmers who lost everything after realizing that making money in stocks is not easier than farmwork, RT reports that a 57-year-old man has allegedly committed suicide in Shenyang, the largest city in Liaoning Province, by jumping off the 17th floor of a building with a black briefcase "full of stock-related materials," local press reported.

 
Tyler Durden's picture

Bears Are "Covering" Everywhere, Especially Here





In a well-worn tradition, where it takes one cover to offset a cover, here is Bloomberg Businessweek's latest, which shows that bears were were "covering" everywhere in the market yesterday (and continue to do so today), and certainly on the front page of the latest issue of Bloomberg's publication.

 
Tyler Durden's picture

China Exclaims "We Were Wronged" - Demands Fed Delay Rate Hike, Reiterates Blame For Market Rout





"China's exchange rate reform had nothing to do with the global stock market volatility, it was mainly due to the upcoming U.S. Federal Reserve monetary policy move," Yao said. "We were wronged."

 
GoldCore's picture

Why Gold Was The Best Buy in 2008-9 Crash and Will Be This Time Too





It is not hard to see history repeating itself all over again. Just look at the Chinese central bank this week cutting interest rates, just like the Fed had to do in 2008-9.

 
Tyler Durden's picture

How The US Economy Underwent Half A Rate Hike In The Past Week Without The Fed's Permission





In the past week, ever since the Fed's FOMC minutes which sent the S&P tumbling from 2100 to their lows in the overnight session, some 13% lower, the US economy underwent the functional equivalent of a 15 bps rate hike, or more than half the rate hike that the Fed has been so terrified to engage in for years.

 
Tyler Durden's picture

China Loses All Control: Arrests Journalist, Financial Executive Over Market Crash





With China's equity bubble now squarely in the rearview and the stock market crash making headlines the world over, Beijing is out for blood in a desperate attempt to find a scapegoat for a market rout that has rattled the country to the core. In what is perhaps a worrying sign of things to come, overnight China arrested a journalist and a top investment banker for "spreading fake trading information" and "illegal trading", respectively.

 
Tyler Durden's picture

Full Witch Hunt: Chinese Police Probe Securities Regulator While Securities Regulator Probes Brokers





Not satisfied with having arrested a reporter and a prominent investment banker, China is also looking into alleged improprieties at CSRC, the regulator which runs the CSF equity plunge protection team. Meanwhile, CSRC is conducting its own investigations into multiple brokers. 

 
Tyler Durden's picture

This Could Be Very Bad News Ahead Of China's Open Tonight





"China halts intervention in stock market so far this week as policy makers debate merits of an unprecedented government campaign to prop up share prices and what to do next, according to people familiar with situation. Some leaders support argument that stock market is too small relative to broader economy to cause crisis, says one of the people, who asked not to be identified as deliberations are private Leaders also believe intervention is too costly, person says."

 
Tyler Durden's picture

Everyone Has A Plan Until...





Every Federal Reserve Chair since 1979 has faced a notable challenge in the first 12-20 months of their tenure – something akin to capital markets “Bullies” hazing the new kid at school. Paul Volcker had the 1979-1980 Iranian oil shock/recession, Alan Greenspan the 1987 Stock Market Crash, and Ben Bernanke the 2007 Financial Crisis. Their responses shaped market perceptions about Federal Reserve priorities and set the stage for the remainder of their tenures, from Inflation-Fighting Volcker to Save-the-World Bernanke. Now, it is Chair Yellen’s turn...

 
Reggie Middleton's picture

Reggie Middleton's Prognosticated Market Crash and False Positives in Interest Rate Raise Promises





Not only is the equity market going to crash (after a dead cat bounce) the property market is about to pass out pain like you won't believe.

 
Tyler Durden's picture

US Equity Futures Soar 4% After PBOC Rate Cut; Chinese Futures Jump After Overnight Market Crash





The PBOC cut itself was not surprising, considering the PBOC now has to juggle and micromanage every aspect of the economy, from its sliding currency, to the bursting stock bubble, to record capital outflow, to soaring real interest rates, to the slowing economy. In fact, bulls around the globe will welcome the latest central bank bailout. Which also happens to be the worst aspect of today's intervention, because one can once again toss all the talk that China would finally stop intervening in asset pricing, with today's decision merely perpetuating the market's reliance on central banks. As a reference, this was the second time China cut both RRR and interest rates in 2 months: the last time it did so was during the depths of the financial crisis.

 
Tyler Durden's picture

Here's The Problem: Despite The Plunge, Company Valuations Are Still At Extremes





Following the recent broad market selloff which has taken all US stock indices into the red for 2015 and in some cases, red for the past 52 weeks, the real question traders should be asking themselves now that the power and potentcy of central bank intervention is increasingly questioned is whether stocks are now fundamentally cheap or at least, "fairly" valued. The answer, as SocGen's Andy Lapthorne points out, is a resounding no.

 
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