Biggest stock market crash ever ahead

Discussion in 'Economics' started by mutluit, Oct 19, 2012.

  1. mutluit


    My nose tells me that we are at the brink of the biggest market crash ever in history.
    The US an UK are creating paper money from nothing to finance their debts, for 0% interest!
    How long can this work? What do you think will happen if the interest rate rises? And it must rise!
    Then the US will go bancrupt, and with it the whole world!!!
  2. bonds


    Everybody and their brother believes this is what will happen... will everybody be right?
  3. Printing money to buy your own debt and others, central banks are in collusion to buy each others debt and debase currencies relative to hard assets. It can continue longer then you can stay solvent. Betting against central banks that have the same agenda can be deadly. Then next question becomes what can break this?. Only thing that can break it is if the relationships of the counter party are in jeopardy through protectionism.
  4. mutluit


    Right, but if that happens, ie. if a developed or big country like Japan starts such a protectionism, then the world economics will break apart as it will have a spiral effect, a devastating impact on the rest of the world economics --> just see what only such a tiny country like Greece causes on the world markets...
  5. Only countries that are on the wrong side of trade balances can be protectionist. The way around it is that free trade continues as long as the country with the advantage agrees to purchase debt..(ie China)..of the country running imbalances. If China and Asian countries stop purchasing debt. USA would enter into trade wars with Asia. So if were shipping wealth overseas at unprecedented rates, what do you do? To fight the country that's holding your paper you debase it drastically so the paper your paying and future interest payments cost less.
  6. A meltdown will allow (never let a crisis go to waster) a new world currency and new method of payment in the future, but time has a way of stretching before "likely" events.

    Remember the "doom and gloom" from 2009 through 2011 and now we are in yet another equity bubble.

    Tick, tock, tick, tock.
  7. you figured this out but the market cant?
  8. eurojack


    Yes and it's going down THIS weekend. No wait, this weekend is almost over, I mean it's going down NEXT weekend. You just wait. Around noon CET.
  9. that's the thing. I am a professional trader, and my brother in law is just a retired computer progammer, and he will probably be the one that is right.

    It's just not fair I tell ya
  10. Eventually I have no doubt there will be a calamitous crash. Just remember 2 things:

    Markets can remain irrational longer than you can remain solvent.


    Markets tend not to do what the vast majority of participants are positioned for it to do. So as long as this many people are expecting a crash, it all but guarantees it cannot happen yet. In fact, the most likely outcome in the near term is a continuation of the rally to new highs. Only after most of the crashy bears have been shaken out will the market be free to actually crash. :D
    #10     Oct 21, 2012