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Uh oh, looks ugly out there this morning. Nikkei fell nearly 400 points, off -4.53%; Hang Seng fell over 650 points, off -4.70%. European markets off about 3%

Category: Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

14 Responses to “Look Out Below”

  1. rktbrkr says:

    The Dylan crash!

  2. rktbrkr says:

    The Geithner/Paulson/GoldmanSachs plan is so bad even Lydon LaRouche makes sense ranting against it!

    “Want to Destroy the U.S.A.? Then Let the Bailouts Continue” By John Hoefle

    “The financial bailout scheme released by Treasury Secretary Tim Geithner this week is an unmitigated disaster, one which will bring down the Obama Administration—if not reversed. It is the financial equivalent of giving more crack to junkies, when what they really need is to be forced to go “cold turkey.” The scheme is fundamentally a continuation—and a significant expansion—of the disastrous policies implemented by the Bush Administration and its Goldman Sachs Treasury Secretary Henry Paulson.

    “There is no way the President could expect to survive, politically, from this policy, even in the relatively short term,” Lyndon LaRouche said of the scheme in a statement released yesterday. “First of all, it is incompetent, it is un-Constitutional, and it will destroy the United States.”

    We have said it before, and we will say it again: The bailout scheme is the greatest financial swindle in history, a policy which is monstrously corrupt. In the name of saving a bankrupt international financial bubble, it is bankrupting the United States, economically, politically, and morally. This is a crime against humanity, and it must be stopped.

    Fraudulent Arguments

    The concept of the bailout itself is a fraud, based upon the false premise that the financial system is “fundamentally sound,” suffering mainly from a “crisis of confidence,” in the wake of the “subprime” debacle. Therefore, what we need to do, the experts insist, is to inject sufficient Federal funds into the markets to keep them functioning until everyone calms down, and everything returns to “normal.”

    The belief that the system is fundamentally sound and that our prosperity depends upon reviving it, is the heart of the fraud. Over the past four decades, we have seen the physical productivity of our nation destroyed, in favor of the biggest financial bubble of all time. We transformed our nation from one which produced its wealth by building things, into a nation which made its money by financial manipulation. In short, we abandoned the American System in favor of British-style financial parasitism. That British system, is what has failed.

    Once you buy into the Big Lie of the bailout, all the rest falls neatly into place. Since we have to save the system, we have to bail out the banks, and if we have to bail out the banks, we will have to pay enormous salaries and bonuses to the bankers and derivatives traders who run the system. God forbid they would leave banking in favor of becoming greeters at Wal-Mart, or take similar lucrative positions!

    People who disagree with this scheme are dismissed as “populists” who just don’t understand how the system works. As with all the best lies, there is some truth in that argument. Not everyone who opposes the bailout does so for serious principled reasons; some do, and others are just angry that the “fat cats” are getting help, while they are not. But the fact that some people oppose it for less than lofty reasons, doesn’t make the bailout any less crooked, and certainly won’t make it any more successful.

    The point is, we are now spending trillions of dollars to bail out derivatives and related financial bets that should never have been allowed in the first place. We were insane to allow the creation of a financial system based upon derivatives speculation, and we are even more insane to try to bail that system out, now that it has, inevitably, blown up.

    Rather than compound our mistakes, we should correct them, by shutting down the derivatives market. Don’t bail out derivatives deals—cancel them! Send the derivatives traders, and the executives and regulators who allowed them to operate, packing. We don’t need you, we don’t want you, and we’re darn well not going to subsidize your bonuses.

    We, as a nation, shut down the mightiest industrial engine the world had ever seen, one which gave us the highest standard of living in history—and for what? This junk! Now it’s blown up, and we’re supposed to bail it out so it can blow us up again? That’s insane!

    Shut It Down

    It is this junk, and bets that are even wilder, that the bailout schemes are designed to protect. Their goal is not really to save our banks, but to save the multi-trillion dollars of fictitious values being held by the banks, the insurance companies, the hedge funds, the private equity funds, and others. Our government, which has been captured by the financiers, is spending trillions of dollars and promising trillions upon trillions more, to keep this scam going, while insisting to us that it is for our own good.

    Bull! If our government really cared about the people it supposedly serves, it would shut this atrocity down, put the financial system through bankruptcy reorganization, and turn its attention to rebuilding and upgrading the real economy. What we need is honesty, in our government and in ourselves. We need to admit we’ve been conned, and correct the weaknesses that made us vulnerable. First tell the truth, and then go fix the problem. No more lies, no more scams.”

    The full article is at:
    http://www.larouchepub.com/other/2009/3613bailouts_destroy_usa.html

  3. w/ this: http://quotes.ino.com/chart/?s=NYBOT_DX&t=f

    looks like the inverse relationship, that AT was laying out, between the SPX:DX, is on-track..

    The Paperback has been catching a bid..
    ~~

    “If our government really cared about the people it supposedly serves, it would shut this atrocity down, put the financial system through bankruptcy reorganization, and turn its attention to rebuilding and upgrading the real economy. What we need is honesty, in our government and in ourselves. We need to admit we’ve been conned, and correct the weaknesses that made us vulnerable. First tell the truth, and then go fix the problem. No more lies, no more scams.”
    rktbrkr,

    nice link, always helpful to read broadly..

  4. rktbrkr says:

    The CNBC cheerleaders were crowing about the best March ever last week – they couldn’t wait. This is clearly a reaction to the Dylan news.

  5. Andy Tabbo says:

    hoffer. I can’t take credit for observing the relationship between the DX and the SP500…even Bob Pisani was on to that one several weeks ago. It is my conviction, though, that the SP500 will NOT go up unless the DX is falling, as the market is looking for assurances that “deflation” is behind us, at least temporarily.

    Last Thursday I dropped a note about the SP500 looking a little tired and exhausted, in need of a pullback. I think this could be the beginning of a decent few days of corrective behavior, which is important in order to sustain larger moves higher. It would be a classic move to see a retrace back to 750/730 zone. We may see some support at 770 first, but a classic correction should get us back to 750/730. I still think this first leg higher from 666 was the initial wave of a larger bear market correction and that we’ll see higher levels in the SP500 coupled with lower levels in the DX. DX should have some good resistance into 86.70/87.20. I would look to sell those levels on the DX, becoming very nervous on any action above 88.30.

  6. Mike in Nola says:

    All caused by tough talk on GM. I suppose to shake up the bondholders. Once the bailout comes, big rally.

    I see the Euro is way down despite our government’s stupidity. Someone needs dollars somewhere.

  7. AT,

    I hear ya, though, to be clear, I wasn’t saying that you ‘birthed’ it, just that you were laying it out..)

    Mike,

    the Euro has had a monster move from the mid-1.20s to the mid 1.30s
    see: http://quotes.ino.com/chart/?s=CME_EC.Y$$

    looks like it has some d-side left in it..

  8. dead hobo says:

    I feel pretty smug this morning. Even though those bastard shorts spooked me last week, I still would have dumped by or before Friday. Thanks for the incentive, though. I’m ready and raring to go for the next rally in a couple of months.

    For those who dislike Cramer, let me remind you of some of his best advice “Bears make money, Bulls make money, Pigs get slaughtered”. See you at the bottom. Do you doubt me? If so, please enumerate 5 reasons why the markets will go up smartly in the next few days. Reasons that include deities, aliens, superstitious invocations, dream like states, hedge fund circle jerks, pump and dump schemes, and anything else MAY be included.

  9. bman says:

    Andy Tabbo Says: “as the market is looking for assurances that “deflation” is behind us, at least temporarily.”

    Andy, I think that is still in the future, except for house prices I have seen no deflation, and since it is commonly agreed that house prices were over inflated, I think we can safely ignore house prices as far as inflation vs. deflation is concerned. So what do we have left? food: up, Water: up, Gas: up, Tools and equipment: up, Clothing: maybe down, I would argue that we are still in an inflationary spiral, and although there may be deflation somewhere out there, it has not hit at the consumer level.

  10. Mannwich says:

    @bman: I don’t know where you live, but I see food prices down a bit, not up, at least overall. Clothes prices (and other retail items) are way down, as are hotels, airlines. I do think inflation’s coming but not yet.

  11. aitrader says:

    Luvin’ my DUG EFT – up nearly 8% today alone.

    The fundamentals behind the oil price say we should see a drop toward $35 over the next couple of weeks. If the dollar holds that is. My bet is that it will and the G20 meet will be much ado and nothing done.

  12. bman says:

    I don’t know Mannwich, you say down a bit, I think they’re up, but noone says they are definately down.
    I’m regularly paying 4-5 bucks for a gallon of milk 3-4 bucks for a loaf of bread. Meat prices also seem high to me, perhaps I’m just older and things just seem more expensive, but I’d like to see some definitive graph that shows deflation on more than one front. Clothes are one of those things that if your budget is tight you can hold off for a few months so it is expected that clothes retailers would have sales to bring in customers, but on things that people buy because they must have them to live, like food, I don’t see any deflation.