This page has been archived and commenting is disabled.
Bloomberg Ignores Major Stock Market Fall in Europe
By DoctoRx of the Daily Capitalist, on September 5th, 2011
Stock markets fell very hard in Europe today, but if even Bloomberg.com doesn’t mention it, does that mean it did not happen or does not matter?
The Stoxx 50 index was down over 5%, as was the German DAX. Yet the “Top News” headlines on Bloomberg as I write this are, in order:
Obama Addresses Union Labor Day Rally;
Darwin Effect Cuts Photo-Voltaic Panel Prices;
Articles on Harvard v Cambridge and how the strong NZ dollar is straining the finances of attendees at a world rugby tournament there;
An op-ed specifically addressed to Rick Perry expressing the POV that Social Security is not a Ponzi scheme;
(FINALLY)
European stocks drop on Merkel Election Loss
(Later, there is a headline announcing the Italian bank stocks plunged. No mention that the Italian stock market indices also fell about 5%.)
This neglect of a gigantic fall in the price of corporate Europe’s assets and earnings power is a bit scary. If there is any wonder as to why the alternative blogosphere is gaining readers by leaps and bounds, today’s Bloomberg shows why. The mass media in the U. S. decidedly accentuates the positive.
We at The Daily Capitalist prefer to instead accentuate the facts, and then add interpretation to them.
As we see it, the question of whether the U. S. has entered a new recession is the wrong question. We believe that the one that officially began in 2007 never ended. Inventory shifts, one-off government programs, random fluctuations of economic activity, mismeasurement of the inflation adjustment to measured GDP, etc., all came into play.
I would add that increasingly this year has the smell of 1974, 1978-9, 1998, and even perhaps 2008. Of course a great deal of what is now happening relates back to the governmental and Fed decisions of 2008, setting a bipartisan course followed by the Obama administration in 2009. To now see the government, via the FHFA, suing the same banks it and the Fed supported so vigorously in 2008 and thereafter looks discordant. Couldn’t there have been less support to reach the same result more rapidly and more smoothly?
In any case, the JPMorgan Chase analyst’s recent call for gold to hit $2500/ounce by year end - is, very unfortunately and quite amazingly, looking more plausible. As is a 1.5% ten year bond yield.
»
- Econophile's blog
- 18170 reads
- Printer-friendly version
- Send to friend
- advertisements -
"And now it's all....this."
http://www.youtube.com/watch?v=kZ6NL3iNNMs
... at least more popular than the image of God that TPTB would have you worship.
This is God speaking. I got my money on Blankfein. Just kidding.......
which God?
The Conscience you may have is the last piece of God you are going to get. Get busy, no mistakes.
http://www.bloomberg.com/markets/
Is it more like Summer 1931?
..... Fall 1929 was a destabilizing shock .... but did not start or cause the Great 1930s Depresssion ... the late 1931 bank runs did ... first Europe then America got sucked into the 'run' as Europe sought to drain gold out of it's US deposits after Britian, and shortly after them, many others, went off the gold standard
No. I think it's more like something we've never seen before in human history. Sure, there have been crashes before. And depressions. But today, we have a global market that is so intertwined that if even one of the nations of the world falls down, the rest will shortly follow. You can thank globalism and technology for that. We are in the unprecedented position right now of having a truly global financial and monetary collapse. All global currencies are fiat currencies. And all of those fiat currencies are essentially pegged to the super-fiat currency, the American dollar. When/if the American dollar goes down, so will the rest of the global currencies. I don't think that's ever been the case in history. We are on the cusp of an unprecedented disaster. So the crash of 1929 nor any other before or since can compare. Add to that the fact that we have a "technologically advanced" society which, for the most part, knows nothing about farming or producing their own food, and you have the makings of a tremendous calamity. At least in 1929, most people knew what it took to provide for themselves. Now, we have a population which depends on its Wendy's and McDonald's for food. Even the people who shop at the grocery stores have no idea what goes into putting chicken, turkey or beef on the store shelves. When the support infrastructure collapses, we will find ourselves in a glorious mess never before seen. So, is this 1929? NO! This is 2011. Welcome to the future.
Yep. and folks better learn how to farm and shoot. Food, water, ammo.
Over 90% of the people wouldn't know what to do with a live chicken in their hand if they were hungry. They're dangerous with firearms.
Do not give a firearms to live chickens!
Ever!
I think people should learn these things, not because of a possible crash, but because it will become increasingly difficult to live within the system.
We cannot have a bank run when banks have infinite liquitity available at the touch of a button.
The real crusher disconnecters come from "out of nowhere". The well-tracked storm gets dis-inter -medi-ated. Ask any insurance adjuster if you don't feel it in your bones yet..
Profound news by dis-attribution. Nasdaq 1987, don't answer the phone, RIGHT!!!
only electronic liquidity alas.
Actually, you could have a bank run even today. Go to a teller and ask for your million in cash. See how long it takes them to convince you to leave.
I think you made his point, we can have bank runs when they are area runs on multiple bans at the same time. Banks have very little in the way of cash on hand .001%. The fine print on your account agreement most likely states, WE can resever the right to request a written notice and 40 days to comply. I moved to my credit union with all cash not in the safe.
My credit union told me I needed to give them 5 days notice if I wanted to withdraw more than $2,000 in cash.
For 2K?!
I can pull that from the wall in 2 days!
Especially if you don't have a million in their bank. They tend to get huffy. Something about ski masks makes them itchy.
My bank (local and small) has a sign on the front door: No hoodies or caps/hats. These apparently obstruct the surveillance camera views. Like I said... itchy.
Yes, we can and Will have Bank Runs. Wait till the sheeple who do not know what QE anything means see their bank close. It will happen.
About three months ago I tried to cash a check for 8K at Wells Fargo. I had over that amount in my checking account and it was from another bank that Scottrade uses. They have taken for deposit at least 4 other checks, so they know they are good. They told me I had to wait a week for them to order the cash. This is at a Wells Fargo that took over Wachovia. I banked at this branch for over 30 years which actually changed hands six times. The best part is it took them over a hour to figure out that I could have 4K now if I did not want to wait.
Anybody who understands what is going on with banks knows this is not good. Simply put. More banks are insolvent then people understand. What happened to me is that the banksters do not trust each other, they do understand the problem and are not sure who is going to blow up first. The banks are freezing up in Europe. We will be next. It is just beginning.
Si se puede!!!
Oh wait, that is not the appropriate slogan here...
Sure it may ramp right here, but no way the beginning if you've had your stick wet.
That's good news for you, Rocky. Less demand for coonskin.
We "can have bank runs" holds true as a logical statement.
We cannot have bank runs due to infinite HP continuous Ink refill systems (sans touchpad), is an illogical statement.
A more correct statement would seem to be:
We can have infinite bank runs until some other country no longer accepts our "currency" for ink.
There you go.
No limits.
Yes. We can have bank runs and when all the depositors are paid, the banks will only have the fed's assets therefore zero capital times 20X leverage equals zero