Global Financial Crisis (20 Viewers)

[Bjerknes]

I hope we never get to see this. If that happens it's gonna crush everything down. I can't even write the number of the US debt at the moment, it's beyond crazy.

But yeah, this situation looks quite scary at the moment. Even ETH fell for like 25-30% over the night.

It's crazy how much of the market corona is melting right now. It seems people are losing trust and that's always deadly.

It's hard to trust a market when you can lose 20% your of portfolio in a week while certain industries can get bailed out by a central bank that is debasing your purchasing power. It's really a manipulated, socialist market, but you have no choice but to play it.

The cryptos are interesting, but that's another manipulated market. Could still be better than central bank notes in the future though. Gold is always a good play in times like these.

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Interruptions on the stock exchange after respectively S&P 500 lost 7%, Dow Jones 7,26%, etc.

From a reliable news this fall is the most notable since the first gulf war 1991

It was officially the largest one-day drop in the history of the DOW and the largest drop since the Gulf War in crude oil.

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What are your guys opinions on the Tech industry.
Tech stocks are ridiculously overpriced. Especially talking about companies like Tesla and Netflix, who get a lot of buzz in media, but whose underlying financials are dodgy at best and downright worrisome at worst.

I agree, some of these tech stocks are way overvalued. Just look at this Tesla chart -- utterly ridiculous.

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It will be interesting to see if we hold these levels on the S&P chart. We need to hold 2700 or so, along with the bold trendline that traces from the bottom of the market in 2009. If we break below both, then that spells trouble.

 

Buy on AliExpress.com

[Dostoevsky]

It's hard to trust a market when you can lose 20% your of portfolio in a week while certain industries can get bailed out by a central bank that is debasing your purchasing power. It's really a manipulated, socialist market, but you have no choice but to play it.

The cryptos are interesting, but that's another manipulated market. Could still be better than central bank notes in the future though. Gold is always a good play in times like these.

Everything is manipulated, even gold. If currencies start to crash then cryptos will become huge. Bitcoin will once again reach 20k levels.

 

[Bjerknes]

As predicted, the market looks like it's set for a huge bounce today after Trump's comments regarding an economic policy. S&P Futures up close to 3%. We'll see how long it lasts.

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Everything is manipulated, even gold. If currencies start to crash then cryptos will become huge. Bitcoin will once again reach 20k levels.

True, the big banks suppress gold and silver. I think Bitcoin could eventually hit those levels again, just not sure when, and I hope it's not at the expense of the dollar.

 

[pavelnel]

Everything is manipulated, even gold. If currencies start to crash then cryptos will become huge. Bitcoin will once again reach 20k levels.

My delusiometer is off the charts. Your understanding of economics and virology is unparalleled in our universe.

Изпратено от моят HUAWEI LYO-L21 с помощта на Tapatalk

 

[Dostoevsky]

As predicted, the market looks like it's set for a huge bounce today after Trump's comments regarding an economic policy. S&P Futures up close to 3%. We'll see how long it lasts.

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True, the big banks suppress gold and silver. I think Bitcoin could eventually hit those levels again, just not sure when, and I hope it's not at the expense of the dollar.

Oh I only predict such levels if currencies start collapsing, otherwise can't see it happening as cryto world seems as manipulated as others.

 

[Ronn]

Say what?

 

[Dostoevsky]

So previous 500 billion wasn't enough. Another 1.5 trillion? Oh God, more printing based on nothing. That's absolutely nuts, that's like 6% of the total debt. Tough luck for Trump, he was crying against it before he became the president.

Markets are wild, though. Previous injection was barely noticed. Even if it helps, which it might will since it's 1.5 trillion, it's still going to be a short term help but once that passes it's gonna be a shitshow.

 

[X Æ A-12]

so what happens now?

 

[Dostoevsky]

so what happens now?

Markets might stable down a bit but it surely won't last long as those injections are pure BS which only cause HUGE trouble in a long term. Everything seems unstable, from S&P to Nikkei which went down 3% recently. With corona the level instability only rises due to investors being sceptic and scared, not trusting the market, selling everything. Treasury yields on 10-30 years are crazy low, even hitting 1% which is crazy. Oil hitting 30$ per barrel is also insane. Debt in the US is going to hit 25 trillion dollars pretty soon. There's just so many fucked up things right now. After that there's not much but wait for the debt bubble to burst and bring the whole economy down the drain. Nothing of that scale ever happened so nobody knows the consequences -- which are surely going to be huge. IMO it's not a question of if, but when. It might even happen in 10, 15 years. It might happen a lot sooner. But it surely will happen and it's gonna be a scary thing as every country will deeply feel that blow. What's even worse, I see zero solutions at this point. Literally zero.

 

[X Æ A-12]

its not too late to listen to the Unabomber

 

[Dostoevsky]

its not too late to listen to the Unabomber

It's a decent watch if you haven't seen it

https://www.imdb.com/title/tt5618256/?ref_=vp_back

 

[X Æ A-12]

It's a decent watch if you haven't seen it

https://www.imdb.com/title/tt5618256/?ref_=vp_back

oh i've seen all of it.

 

[Ronn]

so what happens now?

That announcement did not do anything really.

 

[Bjerknes]

OMG - look at this fucking bitcoin chart. It's down almost 40% today, 10% in like the last hour. I might actually have to buy some just to hold based on pure speculation. This is seriously insane, these moves for some securities are waaaaay worse than in 2008.

 

[Bjerknes]

It will be interesting to see if we hold these levels on the S&P chart. We need to hold 2700 or so, along with the bold trendline that traces from the bottom of the market in 2009. If we break below both, then that spells trouble.

So we blasted through the major technical support levels and are now dipping below the trendline from the 2008 market lows on the weekly chart. If we don't hold that last trendline and fall through the December 2018 lows then the next area of decent support is around 1800 on the S&P. The longer the uncertainty with the virus goes on, the more downward pressure we'll have, which will have cascading effects on less capitalized firms and lenders.

 

[lgorTudor]

mother of all wipeouts

 

[Bjerknes]

so what happens now?

The Fed will cut rates again once the large banks say it's not enough. And then once the markets tank again, they may even go to negative interest rates. That is the ultimate central bank mandate of stupidity.

 

[X Æ A-12]

The Fed will cut rates again once the large banks say it's not enough. And then once the markets tank again, they may even go to negative interest rates. That is the ultimate central bank mandate of stupidity.

The Fed meets again on Wednesday, right? So we will see a (very) short term rally after that?

 

[AFL_ITALIA]

The Fed will cut rates again once the large banks say it's not enough. And then once the markets tank again, they may even go to negative interest rates. That is the ultimate central bank mandate of stupidity.

You have a plan for what to do if they go to negative rates?

 

[Bjerknes]

Say what?

By the way, I'm fairly sure those loans don't have any strings attached, meaning banks can move money around from other positions or assets, and use that capital to speculate. Wouldn't be surprised if that's why bitcoin just dropped 50%. They are probably shorting everything.

From CNN:

https://www.cnn.com/2020/03/12/investing/ny-fed-trillion-coronavirus/index.html

"At the same time, the Fed is trying to ease concerns that banks won't have enough cash to lend to jittery businesses.
"This is to make sure banks don't have any funding issues," said Jeffrey Kleintop, chief global market strategist at Charles Schwab. "We've got enough to deal with, with a health crisis. We don't want companies to feel like banks will pull back on their lines of credit and run into liquidity problems.""



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The Fed meets again on Wednesday, right? So we will see a (very) short term rally after that?

Some rumors say they will cut rates to 0 next week. The markets could rally a bit, but I still think this market is trading on the news and the bank algos are using that to stay short. But honestly, they can cut rates to zero, it doesn't really matter -- if they banks end up doing what they're supposed to do and make loans, who are they going to make loans to in a service economy that is shut down? It's fucking nonsense.