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Black Monday: Stock Markets Collapse Amid Global Sell-Off #158690
08/24/2015 05:47 AM
08/24/2015 05:47 AM
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A 059 Btn 16 FF MSC
ConSigCor Online content OP
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"The time for war has not yet come, but it will come and that soon, and when it does come, my advice is to draw the sword and throw away the scabbard." Gen. T.J. Jackson, March 1861
Re: Black Monday: Stock Markets Collapse Amid Global Sell-Off #158691
08/24/2015 06:22 AM
08/24/2015 06:22 AM
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Tulsa
airforce Online content
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This whole stock make crash started in China, and China's problem is a very old one: Central planning of an economy does not work.

Infrastructure improvements? China has built entire cites that no one is living in. Chine "invested" in roads and high-speed rail systems, and even earned the praise of President Obama. But those projects were beset by corruption and shoddy work. The high-speed rail system proved not only to be expensive, but dangerous - just last month, forty people were killed in a train crash.

And remember the hundreds of millions of dollars America lost by "investing" in Solyndra and other "alternative energy" companies? Well, that was nothing compared to what China has lost by investing in solar energy.

Will America learn from this failure? I doubt it. There have been plenty of examples before that America didn't learn from. And as long as the Federal Reserve is around to bail out Wall Street, why worry?

Onward and upward,
airforce

Re: Black Monday: Stock Markets Collapse Amid Global Sell-Off #158692
08/24/2015 09:21 AM
08/24/2015 09:21 AM
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Western States
Breacher Offline
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My understanding is the Chinese solar industry investments went pretty well. They are now producing the best solar panels at the most competitive prices on the planet. The American situation was hampered by German ownership of a number of companies which sabotaged a lot of the operations in order to make sure that the German owned outfits would remain competitive against the American outfits.

Chinese are the clear winners on the solar situation, hands down. Between Democrat rank and file people doing their ripoffs in the Solyndra affair and the German companies screwing around with tariffs and siphoning out profits for their own situation, we got hosed but are not entirely out of the game.

The Chinese ghost cities are their own problem, they simply built too much expensive high end real estate thinking that people would be willing to move to China and buy in to their version of corporate culture but the reality has been that America's number one asset all along has been the personal freedoms most people here enjoy. In china, the just found that the world's upper middle class don't want golden cages that much after all.


Life liberty, and the pursuit of those who threaten them.

Trump: not the president America needs, but the president America deserves.
Re: Black Monday: Stock Markets Collapse Amid Global Sell-Off #158693
08/24/2015 11:12 AM
08/24/2015 11:12 AM
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Tulsa
airforce Online content
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Quote
Originally posted by Breacher:
My understanding is the Chinese solar industry investments went pretty well. They are now producing the best solar panels at the most competitive prices on the planet....
The problem is, those "competitive prices" are not high enough for them to cover their costs, let alone pay back their loans. That is exactly the same reason Solyndra went broke.

Onward and upward,
airforce

Re: Black Monday: Stock Markets Collapse Amid Global Sell-Off #158694
08/25/2015 04:34 AM
08/25/2015 04:34 AM
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A 059 Btn 16 FF MSC
ConSigCor Online content OP
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BLACK MONDAY: The First Time EVER The Dow Has Dropped By More Than 500 Points On Two Consecutive Days


by Michael Snyder | Economic Collapse | August 25, 2015

It was the 8th worst single day stock market crash in U.S. history, and it was the first time that the Dow has ever fallen by more than 500 points on two consecutive days.

But the amazing thing is that the Dow actually performed better than almost every other major global stock market on Monday. In the U.S., the S&P 500 and the Nasdaq both did worse than the Dow. In Europe, almost every major index performed significantly worse than the Dow. Over in Asia, Japanese stocks were down 895 points, and Chinese stocks experienced the biggest decline of all (a whopping 8.46 percent). On June 25th, I was not kidding around when I issued a “red alert” for the last six months of 2015. I had never issued a formal alert for any other period of time, and I specifically stated that “a major financial collapse is imminent“. But you know what? As the weeks and months roll along, things will eventually be even worse than what any of the experts (including myself) have been projecting. The global financial system is now unraveling, and you better pack a lunch because this is going to be one very long horror show.

Our world has not seen a day quite like Monday in a very, very long time. Let’s start our discussion where the carnage began…

Asian Markets

For weeks, the Chinese government has been taking unprecedented steps to try to stop Chinese stocks from crashing, but nothing has worked. As most Americans slept on Sunday night, the markets in China absolutely imploded…

As Europe and North America slept on Sunday night, Chinese markets went through the floor — the Shanghai Composite index of stocks fell by 8.49%, the biggest single-day collapse since 2007.

It wasn’t alone. Hong Kong’s Hang Seng fell 5.17%, and Japan’s Nikkei fell 4.61%. Stocks in Taiwan, the Philippines, Singapore, and Thailand also tumbled.

Things would have been even worse in China if trading had not been stopped in most stocks. Trading was suspended for an astounding 2,200 stocks once they hit their 10 percent decline limits.

Overall, the Shanghai Composite Index is now down close to 40 percent from the peak of the market, and the truth is that Chinese stocks are still massively overvalued when compared to the rest of the world.

That means that they could very easily fall a lot farther.

European Markets

The selling momentum in Asia carried over into Europe once the European markets opened. On a percentage basis, all of the major indexes on the continent declinedeven more than the Dow did…

In Europe, the bloodbath from Friday continued unabated. The German Dax plunged 4.7%, the French CAC 40 5.4%, UK’s FTSE 100 dropped 4.7%. Euro Stoxx 600, which covers the largest European companies, was down 5.3%.

But wait… Europe is where the omnipotent ECB and other central banks have imposed negative deposit rates. The ECB is engaged in a massive ‘whatever it takes” QE program to inflate stock markets. But it’s not working. Omnipotence stops functioning once people stop believing in it.

U.S. Markets

Even before U.S. markets opened on Monday morning, the New York Stock Exchange was already warning that trading would be halted if things got too far out hand, and it almost happened…

The thousands of companies listed by the New York Stock Exchange and Nasdaq Stock Market will pause for 15 minutes if the Standard & Poor’s 500 Index plunges 7 percent before 3:25 p.m. New York time. The benchmark got close earlier, falling as much as 5.3 percent.

There were other circuit breakers in place for later in the day if too much panic selling ensued, but fortunately none of those were triggered either. Here is morefrom Bloomberg…

Another circuit breaker kicks in if the S&P 500 extends its losses to 13 percent before 3:25 p.m. If the plunge reaches 20 percent at any point during today’s session, the entire stock market will shut for the rest of the day.

When the U.S. markets did open, the Dow plunged 1,089 points during the opening minutes of trading. If the Dow would have stayed at that level, it would have been the worst single day stock market crash in U.S. history by a wide margin.

Instead, by the end of the day it only turned out to be the 8th worst day ever.

And in case you are wondering, yes, investors are losing a staggering amount of money. According to MarketWatch, the total amount of money lost is now starting to approach 2 trillion dollars…

As of March 31, households and nonprofits held $24.1 trillion in stocks. That’s both directly, and through mutual funds, pension funds and the like. That also includes the holdings of U.S.-based hedge funds, though you’d have to think that most hedge funds are held by households.

Using the Dow Jones Total Stock Market index DWCF, -4.21% through midmorning trade, that number had dropped to $22.32 trillion.

In other words, a cool $1.8 trillion has been lost between now and the first quarter — and overwhelmingly, those losses occurred in the last few days.

Unfortunately, U.S. stock prices are still nowhere near where they should be. If they were to actually reflect economic reality, they would have to fall a lot, lot lower.

For example, there is usually a very strong correlation between commodity prices and the S&P 500, but in recent times we have seen a very large divergence take place. Just check out the chart in this article. At this point the S&P 500 would have to fall another 30 to 40 percent or commodities would have to rise 30 or 40 percent in order to close the gap. I think that the following bit of commentary sums up where we are quite nicely…

“Markets are afraid of further economic weakness in China, further pain in global commodity markets and uncertain about Fed and PBoC policy — what they will do and what the impact will be,” Societe Generale’s Kit Juckes wrote on Monday. “The divergence between global commodity prices and equities is not a new theme but the danger now is that they begin to re-correlate – as they did when the dotcom bubble burst in 2000 and what had previously been an emerging market crisis became a US recession.”

And commodities were absolutely hammered once again on Monday.

For instance, the price of U.S. oil actually fell below 38 dollars a barrel at one point.

What we are watching unfold is incredible.

Of course the mainstream media is bringing on lots of clueless experts that are talking about what a wonderful “buying opportunity” this is. Even though those of us that saw this coming have been giving a detailed play by play account of the unfolding crisis for months, the talking heads on television still seem as oblivious as ever.

What is happening right now just doesn’t seem to make any sense to the “experts” that most people listen to. I love this headline from an article that Business Insider posted on Monday: “None of the theories for the Black Monday market crash add up“. Yes, if you are willingly blind to the long-term economic and financial trends which are destroying us, I guess these market crashes wouldn’t make sense.

And if stocks go up tomorrow (which they probably should), all of those same “experts” will be proclaiming that the “correction” is over and that everything is now fine.

But don’t be fooled by that. Just because stocks go up on any particular day does not mean that everything is fine. We are in the midst of a financial meltdown that is truly global in scope. This is going to take time to fully play out, and there will be good days and there will be bad days. The three largest single day increases for the Dow were right in the middle of the financial crisis of 2008. So one very good day for stocks is not going to change the long-term analysis one bit.

It isn’t complicated. Those that follow my writing regularly know that I have repeatedly explained how things were setting up in textbook fashion for another global financial crisis, and now one is unfolding right in front of our eyes.

At this point, everyone should be able to very clearly see what is happening, and yet most are still blind.

Why is that?


"The time for war has not yet come, but it will come and that soon, and when it does come, my advice is to draw the sword and throw away the scabbard." Gen. T.J. Jackson, March 1861
Re: Black Monday: Stock Markets Collapse Amid Global Sell-Off #158695
08/25/2015 07:09 AM
08/25/2015 07:09 AM
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East of the Pacific
fal3 Offline
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Billionaire manipulators plan. Others followed the panicked crowds. Who benefits from these "speedbumps" ? The people who BUY during the down crisis.

Always look to the precious metals. If during a stock "sellout" the metals aren't being bought, either, it is because the manipulators planned to buy back in at a much lower price. If they were really scared, they would run to buy precious metals.

In this "crisis" both stocks and metals were down. I'm not a financial analyst, but I know that much.


----------------------------------
"Take heed: watch and pray, for ye know not when the time is." -- Mark 13:33.
Re: Black Monday: Stock Markets Collapse Amid Global Sell-Off #158696
08/25/2015 09:46 AM
08/25/2015 09:46 AM
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Tulsa
airforce Online content
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So much for that bounce back. Down another couple hundred points. Silver, inexplicably, is down again as well.

Onward and upward,
airforce

Re: Black Monday: Stock Markets Collapse Amid Global Sell-Off #158697
08/25/2015 10:27 AM
08/25/2015 10:27 AM
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Tulsa
airforce Online content
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[Linked Image]

Onward and upward,
airforce


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