Trading Halted in Brazil in Russia are signs of larger things to come. Europe, Asia and American markets down at least 5%. In most cases, 6 to 9% - across the board. Europe needs to pony up a major Bailout or we're gonna lose 1,500 points this week...
It's really not that bad. Just as easily as stocks fall 4% in one day they can recover that much in a single day. There is still no recession by the accepted definition. No negative GDP. Numerous sectors are reporting record earnings,and strong YOY growth. The fundamentals of the economy don't justify this irrational selling. The fake financial crisis and non credit crunch hasn't spread to non financial sectors. There was and still is no housing bubble.
I think we'll see a continuation - massive downs followed by smaller ups. A couple big downs could see 1000 point loss (then 500 pt rally next day), like 2 weeks ago.
Fundamentals say half US banks are insolvent. That means if left to rot, will take down over 60% of the nations lending facility. Rates would go up and confidence in the toilet. Severe recession. And the numbers are cooked. CPI is much higher than stated. Therefore, GDP is overstated by at least 3-4%.
stock_trad3r, you are clearly uneducated on this matter. I don't think you have a clue how the system works. Take 45 min's out of your busy schedule and go educate yourself. http://www.bigeye.com/moneyasdebt.htm
The losses are real, the crisis isn't. I am undergoing a personal investment crisis but the US economy is still sound.
Dude, this economy is built on a house of cards. It's dependent on that next loan. Why aren't banks lending? Because the loans at the front of the line defaulted and they can't make the loans to the folks at the end of the line. The system is dependent on that next promisory note. If it can't be made the revolving door stops. You'll realize just how bad this is when the bank owns all your property because you can't pay your debt.