Last Thursday the US stock markets dropped almost 10% in less than 15mins. After the weekend, the markets then jumped almost 5%. Those are major market moves in less than 3 business days.
What I see is that Mr. Market is currently dealing with symptoms of Bipolar disorder. The market was manically depressed Thursday and then hysterical on Monday. If you blinked, you probably missed everything.
When someone has major mood changes in a short period of time, they are not stable. It usually means that the person is clinically depressed. A normal person would not show signs of major mood swings. And a normal market would not show signs of major volatility. I would diagnose Mr. Market as being in the stages of depression.
Yesterday's Euro bailout of $1 TRILLION helped make Mr. Market really happy for a day. It was like the global markets were given a shot of Prozac. But, the problem with drugs, like Prozac, is that it provides a quick fix, but no long term solution. The crisis in Europe was caused by country's having a lot of DEBT. And the EU's solution to it's Debt is... MORE DEBT?! It's like paying your student loans with a credit card! All of this doesn't make sense and it's not good news for the economy in the long term.
The markets are truly depressed and Debt Deflation will be upon us.
Showing posts with label stocks. Show all posts
Showing posts with label stocks. Show all posts
Monday, May 10, 2010
Friday, May 7, 2010
Stock Market Crash: May 6, 2010
A lot of people were confused and shocked from the move yesterday. Some people lost money.
On the other hand, this one guy was quite excited (Super funny :)...
Thursday, May 6, 2010
"Blame Speculators?!"
The stock markets just had a seizure...
The US stock markets plunged, tumbled, and cascaded yesterday after a slew of bad events and news.
Once again people will blame speculators for the unprecedented event. Mass media will blatently say that Program trading or Computer trading by large financial firms hi-jacked the stock exchanges and caused emense amounts of volitility. In fact that may be the case, as the situation is still under investigation.
Manipulation or not, people will be looking at this the wrong way. It is not that falling markets are the problem, it's the Reasons why the markets fell that's the problem.
The simple reason: The Global Economy Sucks!
The markets voiced their strong opinion yesterday on the Greece crisis, Europe's soverign debt problems, continued rising consumer debt, and high unemployment rates. The speculators have awaken. They say “I have NO faith in this phony economy!”
The governments and mass media will unleash their attacks on speculators, but they will only be finding scapegoats for their flawed policies.
The fact of the matter is, the fall was somewhat predicted and it may be a sign of what's to come.
I say, it was about time.
The US stock markets plunged, tumbled, and cascaded yesterday after a slew of bad events and news.
Once again people will blame speculators for the unprecedented event. Mass media will blatently say that Program trading or Computer trading by large financial firms hi-jacked the stock exchanges and caused emense amounts of volitility. In fact that may be the case, as the situation is still under investigation.
Manipulation or not, people will be looking at this the wrong way. It is not that falling markets are the problem, it's the Reasons why the markets fell that's the problem.
The simple reason: The Global Economy Sucks!
The markets voiced their strong opinion yesterday on the Greece crisis, Europe's soverign debt problems, continued rising consumer debt, and high unemployment rates. The speculators have awaken. They say “I have NO faith in this phony economy!”
The governments and mass media will unleash their attacks on speculators, but they will only be finding scapegoats for their flawed policies.
The fact of the matter is, the fall was somewhat predicted and it may be a sign of what's to come.
I say, it was about time.
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