World Enters Bear Market - Global Equity "Dead Cat Bubble" Bursts

Tyler Durden's picture

History repeats, if you're just willing to listen. The "Dead-Cat-Bubble" is dead as global stocks enter a bear market (down 20% from May 2015 highs) and US equities catch down to the rest of the world.

  • *MSCI'S ALL-COUNTRY WORLD INDEX EXTENDS DROP TO 20% FROM RECORD

It would appear the business cycle trumps central planning after all:

h/t @TrueSinews

 

Trillions in printed money around the world and its deja vu all over again for the idiocy of "wealth creation"-driven sustainable consumption.

And it's getting worse:

  • *DOW AVERAGE EXTENDS ROUT TO 400 POINTS; S&P 500 FALLS 2.8%

 

And the S&P 500 just broke the October 2014 Ebola Lows...

 

How long until The Fed Un-Hikes?

 

Who could have seen this coming?

 

The decline of faith in The Fed...

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Looney's picture

I demand a Fecal Stimulus! ;-)

Looney

RadioFlyer's picture
RadioFlyer (not verified) Looney Jan 20, 2016 10:44 AM

Indeed!  They do have one of those here, scroll down.

 

http://www.museumofquackery.com/

 

 

TeamDepends's picture

This depression looks to be quite robust!

Mr.Sono's picture

Looks like low life's are out aka bankers, like jame diamond.

two hoots's picture

 

Zero Hedge, “World Enters Bear Market”  1/20/20016

 

Arnold's picture

Shemitah forgot about the Gregorian calender, that's all.

Bilderberg Member's picture

2009:  Cash for Car Clunkers Program

2016:  Cash for Equity Clunkers Program

GOOD JOB FEDERAL RESERVE

 

Keyser's picture

If you want a good laugh, turn on CNBS and watch Cramer squirm... It's epic... 

Occident Mortal's picture

Bear market is perfectly normal and healthy.

Only Fed propaganda would have you believe markets should rise gently in a perfectly managed straight line.

Father Thyme's picture
Father Thyme (not verified) Occident Mortal Jan 20, 2016 11:19 AM

Normal isn't healthy to the depraved.

Thought Processor's picture

 

 

Seven year glitch.  Like clockwork. 

upWising's picture

It's just that the Green Shoots are now Red Shoots and are growing DOWN into the soil instead of up.

Kind of like the charts.

It's all good.

Durrmockracy's picture
Durrmockracy (not verified) upWising Jan 20, 2016 12:03 PM

Bitcoin is showing its strength this year against deflationary pressures, much better than most "assets".

https://btc-e.com

Mr. Universe's picture

"The situation is worse than it was in 2007. Our macroeconomic ammunition to fight downturns is essentially all used up," said William White, the Swiss-based chairman of the OECD's review committee and former chief economist of the Bank for International Settlements (BIS).

"Debts have continued to build up over the last eight years and they have reached such levels in every part of the world that they have become a potent cause for mischief," he said.

Let the mischief begin!

new game's picture

asshat c bankers did a real fine job this tyme. now what? same trick-moar qe. fuck yeh, cause dr degreed economicst(s) studied history and compared apples to pumpkins and drew a direct corallary. fuck yeh moar qe, cause it worked sooooo goood. dum fuks...

stimulate your asses, you asshats...

beemasters's picture

With the excessive over printing this time, the next 7.5 year cycle will probably be only 2 years. Most don't know where to park their fiats.

Tall Tom's picture

-392..It had been down 550 at one point.

 

But of course the PPT came to the rescue.

 

The members of the PPT by Executive Order 12631, of course, are

 

Janet Yellen, Chairman of the Federal Reserve

Jack Lew, US Secretary of the Treasury

Mary Jo White, US Securites and Exchange Commission Chairperson.

and

Timothy G. Massad, US Commodity Futures Trading Commission, Chairman

 

These are the people who are mortgaging your future in order to ramp up today's faltering Stock Market.

 

They are presently borrowing from your 401K and Investment Retirement Accounts in order to bolster Stock Pices. You will end up being hit twice, for their losses in the failed attempt and your losses for having your funds invested in Mutuals which are inthe Stock Market.

 

It is a Double Accounting scam designed to drain you of everything for which you have ever worked.

 

They are emtying the coffers and filling them with IOUs...much like they did with the Social Security Trust Fund back in the 1990s.

 

Yes. If  you have money in an IRA or a 401K then you are just paying for your own personal destruction. That is what your "contribution" has amounted to.

 

Just thought you all needed a "heads up" reminder.

 

Enjoy your destruction proles...fucking tax slaves.

 

I would not be that pissed off at me for telling you this. Hopefully this has pissed you off. I find it absolutely revolting. Don't you?

 

So I will burn those names into my memory so that I can...return...the...burn. Won't you?

 

Hitlery_4_Dictator's picture

What happens when the world calls the FED's bluff and goes FU when they unleash QE4?? When QE4 shits the bed you know it's time for America to put the FED into the hospice. 

Thought Processor's picture

 

 

It's already over.  You're witnessing the end stages of a long term economic cycle that began after WWII (Bretton Woods).  It picked up speed after 1972/73 (gold window closed).  QE4 will mark the final stage which may stretch out for some time, depending on how long they can keep at it.  The last bubble as always will be in money itself (the paper kind), not in terms of value but rather quantity.  Value will be hard to find.  And those that own real value will not be willing to exchange it for money.  That is the end game right there.

 

It's a once in a lifetime show.

 

The real question is, what will we learn from it?

 

 

 

 

greenskeeper carl's picture

I just question the extent to which the world will buy it this time. Holders of USDs/USTs and equity investors world wide. The ECB would eventually have to weaken the euro some more, if USD weakening causes the euro to gain to much strength. How much longer, how many more times, will people be willing to say "Its all good, the federal reserve is creating billions a month out of thin air again, theres nothing to worry about"

 

At some point thats not going to work. And the QE would have to be much bigger this time, and will reek of desperation.

BurningFuld's picture

This ends precisely when all countries get together and say: "We ain't taken no phoney printed USD's no more!"  THE END

Miles Ahead's picture

"The real question is, what will we learn from it? - ThoughtProcessor

 

I think we learned you sure love to have the biggest box.

 

And love tapping on the <cr> little button.  Great for getting attention ain't it? Here.  Let me give it a go...

 

 

 

 

 

new game's picture

petro dolla must be broken for that to happen, and it is under way. cue russia/iran and china...

American Sucker's picture

There's precious little to learn.  Civilizations grow, stagnate, age, and die.  It is an unavoidable fact of history.  No policy, no party, no anything can prevent it.

WorkingClassMan's picture

And the follow-up question is: "Will we survive the fallout from it?"

 

With this lot ru(i)ning our country and world today, I have doubts and fears.

ersatz007's picture

The real question is, what will we learn from it?

I'm pretty sure that question is rhetorical.

Max Cynical's picture

I like to call it the Great Debtpression.

__Usury__'s picture
__Usury__ (not verified) Max Cynical Jan 20, 2016 12:49 PM

right........

''The future cannot repay todays debts''.........trav7777

progolfdoctor's picture

You know things are bad when the headlines on CNBC are  "ISIS cuts fighters’ salaries due to ‘exceptional circumstances"

CuttingEdge's picture

Please say you are shitting me?

Only, I'm trying out some new home-grown shit and anything is believable at this moment.

hedgeless_horseman's picture

 

 

One of these days the bear is going to rape us all like we are Leonardo DiCaprio in The Revenant, aand we are going to be left for dead with only our buckskins and a buffalo skin.

Father Thyme's picture
Father Thyme (not verified) undermind Jan 20, 2016 11:21 AM

It's Borat up to his normal antics. LOL

CuttingEdge's picture

Bullish for animal skins - whodathunk stone-age commodities would come into vogue again?

Don't tell Jamie - he'll corner the derivitives market on survival.

Haole's picture

[Borat]What?   You mean my DOW, is dead...?[/Borat]

konputa's picture

Theese eese my seester, she number one whore banker in all of Kazakhstan.

new game's picture

i like bears, they are my friends when i'm in the woods. they are shy and ussually want nothing to do with us "minding our own bussiness types." when a bear is with a cub, that spells big trouble, like flight or death. bears are not the problem here.

it is the types that feed the bears that we need to deal with, because those bears become too friendly, ya know, like banksters, ha...

cats, well that is another story.

Thought Processor's picture

That's actually a pretty good analogy.  And just like in the wild bears serve a necessary purpose within the food chain cycle.  To stop them would be to stop the natural function of the ecological system.

 

Same is true for bear markets.  Attemps to stop them are counter productive long term.

Keyser's picture

And of course a bear will rip your face off, over and over again if your only investment strategy is to BTFD... 

 

Thought Processor's picture

 

 

The take away would be: Don't mess with bears.  

 

That's not to say you can't trade in here, you can but it's like going into a knife fight.  If you go into a knife fight you should know two things-  1- You may win but even if you win you will likely get stabbed one or more times.  2- If you don't win you may be killed altogether.

 

So even if you win the knife fight you will most likely not come out ahead of where you were before the knife fight.  

 

The net takeaway is this:  Don't get into knife fights.

Miles Ahead's picture

re: "Thought" Processor...

 

Well at least we got to "take aways" from this one, so I guess it's worth indulging your need for attention. 

Don't fight with bears.  I'll pass that on to my Canuck mates.

Don't get into a knife fight.  This would be for my Glaswegian buddies. 

Such profundity; I really should enjoy and not complain.  Maybe ZH will enable a "frame" option so you can put a nice color border around the big box.

Rainman's picture

Uh-Oh .....  a bear sighting means the pension funds are toast !

             http://www.nytimes.com/2015/10/07/business/teamsters-pension-fund-warns-400000-of-cuts.html

Immortal Flatulence's picture

Which makes me think, wtf is going to happen to all the seniors? Is our ageing population going to end up out on the street or in nursing homes, once they lose their houses? If in nursing homes, how much more will the state/TPTB confiscate from the shrinking working class (thereby shrinking it further)?

When will ppl revolt?

I’m getting tired of living under a plutocracy in which our plutocratic masters give us the guise of a democracy and capitalism. I want the real thing, not the guise of.