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Suddenly, We Have Problems
Submitted by John Rubino via Dollar Collapse blog,
A rising stock market, like a rising tide, can cover a multitude of interesting and/or scary things. If the finance guys who really know what’s going on are buying, then the disturbing stories that lead each evening’s news must be manageable. And we, in general, must be okay.
But let the market fall a bit and those headlines suddenly begin to seem both oppressive and really, really numerous. And maybe we’re not okay after all.
To take just a few of the issues that, in the wake of the recent equity correction, now loom large:
Islamic State, the tiny band of religious crazies that the US armed to do its bidding in the Syrian civil war is now threatening to take Baghdad, capital of Iraq and home to a US embassy that will live forever in the annals of hubristic excess. Actually a small, self-contained city, the embassy contains all kinds of sensitive equipment, documents and personnel, and will be defended with (thousands of) boots on the ground if an Islamic State victory appears imminent — which it now seems to be. In other words, we’re getting ready to dump another trillion or so dollars into the hole where we previously dumped two trillion with nothing to show for it but chaos.
Ebola, a nasty virus that was previously polite enough to stay in Africa, has escaped and is now touring Europe and the US. Either it has mutated to become more communicable or the West’s protocols for dealing with it are inadequate. Either way, there is now talk of the disease breaking free and causing a First World pandemic. See Ebola pandemic spreading across Europe is ‘unavoidable,’ WHO warns.
The strong dollar, meanwhile, has had the same effect on the world as would higher US interest rates, slowing growth and causing hot money to leave emerging markets and pour into US Treasuries. So while everyone is waiting for the Fed to raise interest rates and court the traditional “taper tantrum” liquidity crisis, the foreign exchange markets have done the heavy lifting already. See Why a strong dollar is scarier than taper tantrum.
Japan and Europe are dropping into recessions that could easily become system-threatening depressions. While US stocks were rising it was possible to view America as an island of stability in a chaotic world. But when US stocks start to fall it’s much easier to envision an interconnected world where everyone feels everyone else’s pain. Which is the accurate viewpoint, because who will buy our stuff — including the bonds that finance our deficits — if the other major economies grind to a halt?
Junk bonds, typically a canary in the financial-bubble coal mine, began selling off in September, just as the dollar started to spike. This was also easy to ignore while equity prices were rising, but now looks like the first of many dominoes to fall in a financial panic.
And it’s October! All of the above happening simultaneously would be scary anytime, but coming in the month when some of the most dramatic stock market crashes have for some reason occurred, this must feel like deja vu all over again for folks with a sense of financial history.
It’s impossible, of course, to know whether something is a crisis until it becomes one. So this might turn out to be nothing more than a hiccup in the permanent new normal of ever-rising financial asset prices. We’ll know soon enough.
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No wonder that unemployment claims are dropping. What with the low level of the labor participation rate there's nobody left to file a fucking claim!
Everything is just fine... What problems? We don't have no steeenking problems
https://search.yahoo.com/search?p=youtube+get+along+little+doggie&ei=UTF...
It’s impossible, of course, to know whether something is a crisis until it becomes one.
otherwise known as the crisis crisis.
Part of the problem is that with the government workers, it is very difficult to decide if they are alive, dead from ebola, or just sleeping. That makes them very difficult to count for employment statistics.
Economic Report on Public Radio this morning claims that the new unemployment claims figures are consistent with a "Boom Economy". Get a load of that Orwellian take on the US economy. Nobody left in the labor market means "Boom Times".
All fucking common sense has gone out the window. The last 15 years has seen all media credibility die.
The last 15 years has seen all media credibility die.
Along with kritikal thinking skills. They have perfected the red pill blue pill divide.
Listen.
I cannot dispute Mr. Rubino's points. But I need to see more than Holy wars(I want nukes flying) and a eBola death statistics that equal at least that of the flu. Right now not even close.
So it's a grey area. And in any market grey means buy the dip.
Sorry. Don't drone me ZH.
Bangs
I find your lack of panic disturbing.
Listen.
I didn't get in ground floor on LAKE. Sorry bro. Some bought at $5 and sold at $30. Not bad for 2 weeks worth of "HARD" work.
You will be Outsourced.
The comment was sarcasm
For those that have emotional issues with this statement please leave your emotions for you family and friends. Markets are cold as ice.
Me, well I have been buying this morning. Not all in but starting to rebuild.
I would be betting on the bear side of the equation....
Business can't find customers? That's easy...just outsource your sales! Hey, it worked like a charm on that annoying little labor problem, didn't it?
It is all foreplay until they outsource executive management.
And least we forget this gem
http://i.dailymail.co.uk/i/pix/2014/10/16/1413474472716_Image_galleryIma...
and the comment should be...Hey she didnt finish her sandwich..Ill eat that
You didn't build that sandwich on your own. Someone else sliced those coldcuts.
What in the fuck is clipboard man doing? Those CDC bastards have a $6 billion budget. They didn't think to make a supervisor's bubble hood?
Not to mention it is a fucking clipboard. Put me in charge and they would have easily decon'd iPads with apps to run whatever fucking checklist you want. Then again, I think like an IT guy and couldn't suffer the DMV mentality of those .gov fucktards.
Think: FEMA - Katrina
The federal government worker in that picture is a member of a protected class. He has all the protection he needs.
Yellen speaks ... and there's that awkward moment when someone asks whats wrong when they are the problem!
Hugh Hendry checklist:
1) Borrow $. Check
2) Borrow more. Check
3) Buy the High. Check
4) Watch the profits
Roll in. ....... Hold that thought.
Think anybody has the smarts to pull back from WW3 foreplay with the Russians?
They don't care, they know they'll all have time to get safely to their hardened war bunkers.
Bingo! +10,000
http://en.itar-tass.com/russia/754838
Just to keep some people informed, Chuck Hagel stated that Russia moved to NATO borders(seriosuly?) And they have to prepare against Russia.
Seems the people in US should start saying something before it is too late. Cause a war with Russia may be the last war anyone fights, amd Moscow made it clear they will use tactical nukes incase massive incursion.
Any "normal market" would be way lower by now. These new markets seem to levitate... The invisible hand is hard at work. For how long though, for how long, that's the question.
Rising the markets has been the whole point all along, as long as the sheeple heard for years on their drive home that the DOW is way up, then everything else has to be OK then too. Greatest scam ever to divert everyone's attention while they hollowed out the corpse of the nation.
When the Derivatives Guaranteeing something bad won't happen exceed the actual event' you can get some wild Swings.. till at some point something can Not be Guaranteed...
We should drop ebola on the Islamic State
(or better yet, don't do anything and leave that shit hole forever)
But oil! That's the only reason we're there, bankers & corporatists who steer the ship or their political lap dogs don't give two shits about bringing democracy to developing nations. all that matters to them is the western globalist hegemony ensuring money & power stays in the hands of their offspring forever. To accomplish this they need energy (oil), a way to distribute it (Afghanistan) above all other things (besides food & water, which will be the next oil in the coming decades).
In the words of Bruce Willis, I have only one thing to say to the Media:
"Welcome to the party"
"A rising stock market, like a rising tide, can cover a multitude of interesting and/or scary things."
In the words of Warren Buffet: "It's only when the tide is low when you can see who has been swimming naked" :)
Yeah, and to top it off Barbie sales are in the tank.
All they need is a Taylor Swift Barbie to right that ship.
Attach the Stone of Triumph!
"And maybe we're not okay after all"
And the winner for the category of Understatement of the Century.
(tears open envelope)
The award goes to Tyler Durden of Zero Hedge.
Accepting the award for Mr. Durden, who is on Larry Ellison's island for some well deserved R & R...........
Tomorrow is October 17th. Different day of the week than it was in 1987, but still the 17th. I predict circuit breakers will be popping all over the place.
Stay tuned
Made my first money investing after that crash and have been pumping and dumping ever sense. I think this may be my last one though. I'll go "all in"' after this one of course but I'll head for the exits way earlier than I used to. Just to much risk out there now with the HFT and other manipulation shenanigans.