1. wars (creditor nations been slaughtered) 2. let banks fail (fed banks close, governments shut down). 3. confiscate all wealth from public through taxation, socialism, and inflation. I think option 3 is the most likely outcome, public has been screwed throughout history, this time is no exception.
Not sure how you define "normal". I'd agree if you were talking about the markets pre-2003 or so, but you have to remember we literally went 4+ years at one point without a 2% down close to close. Of course, by 2007-08 all hell broke loose and volatility returned with vengeance. Managed markets seem to have a way of shocking the hell out of the system when people least expect it.
Managed markets lead to bigger blowups, IMO. But I don't see any attempt OT manage equity markets - it's the debt markets that has leadership running in circles. IMO, etc.
The equity markets are managed by the govt in blatant and subvert ways. Blatant management: - Cutting fed funds target down to 0-0.25% from just over 5% interest rate causes the relative stock earnings yields to be worth more. - QE 1, & 2. Both of these events caused a rally, arguably to the negative effect these developments had on the dollar. Since 40% of the S&P's earnings are generated abroad, a weak dollar has a positive effect for US- based multinationals. - Etc, many other ways too numerous to list. Read "The Myth of the Free Market: The Role of the State in a Capitalist Economy" Subvert management: - Presidents working group on the financial markets, aka the "plunge protection team". It's real and it exists folks. etc.
Here we go again. Down 100+. Jobs report an uptick but below seasonal average. Interesting though that the SPY RSI is almost @ 0.
Dow up 100+ didnt hold. Nobody is fooled anymore. They know the true job data is smoke. Jobs gained my ass, it's more like 99ers falling off the report.
Finally, a tape reflecting reality. Fed and Wall St. knotheads will soon hit the panic switch. Prices haven't even gone on sale yet, as the smoke rises from the devastation to come. Heavy distribution as J Q Public gets screwed again.
Watch that VIX. If it gets to 40 we could see some serious buy orders and this thing rally 500 points.