Friday, August 21, 2015

Dow plunges 531 points; S&P 500 slides 3.2%......

Dow plunges 531 points; S&P 500 slides 3.2%

Dow: 16,459.75, -530.94, (-3.12%)  

S&P 500: 1,970.89, -64.84, (-3.19%)
Nasdaq: 4,706.04, -171.45, (-3.52%)  WOW!


Dow suffers biggest weekly point drop since the worst week of the financial crisis

The Dow tumbled 531.14 points on Friday, and 1,017.85 points, or 5.8%, for the week

Dow: Biggest two-day point drop since financial crisis

Dow plunges into correction territory

The Dow has not seen back-to-back drops of more than 300 points since November 2008. 

The S&P 500 fell more than 5% for the week; it has not dropped more than 4% in a week since May 2012, and has not lost 100 points within five days since October 2008. 

The Chicago Board of Exchange's Volatility Index – the so-called 'fear index' – surged more than 25% today and logged its biggest weekly jump ever.

Even if it is short term oversold, this is actually a quite dangerous market – caveat emptor, as they say.


THE FED FACES SOME VERY INTERESTING QUESTIONS 

THE CLEAR MESSAGE FROM THE MARKETS IS - HIKE RATES AND YOU'RE DONE, GIVE US QE4 OR IT'S ALL OVER!   TALK ABOUT A ROCK AND A HARD PLACE.

WHAT WILL THE FED DO?   THEY DON'T HAVE A SINGLE CLUE, THEY ARE SO ARROGANT THEY NEVER IMAGINED THEY WOULD FAIL.

WHAT CAN THE FED DO?  PRAY, HOPE, BLAME, VERY LITTLE THAT WILL MAKE A DIFFERENCE. THE FED IS THE PROBLEM!

WHAT AMMUNITION DOES THE FED HAVE LEFT TO DO ANYTHING WITH?  NOT MUCH, NOT EVEN MUCH INTELLECTUAL CAPITAL TO PROCESS THE PROBLEM.

WILL THE FED PUT IT'S BALANCE SHEET AT FURTHER RISK?  THEY ARE SO STUPID THEY JUST MAY TAKE ON MORE RISK, BELIEVING THEY ARE OMNIPOTENT.

DOES THE FED HAVE MUCH OR ANY CREDIBILITY LEFT?  WE ARE ALL GOING TO FIND OUT PRETTY QUICKLY. I WOULD SUGGEST THAT IT IS AN IQ TEST AND MOST WON'T GO ALONG FOR LONG. PROBABLY A SOLVENCY TEST AS WELL.

CAN THE REST OF THE WORLD AFFORD TO GO ALONG WITH THE FED? OR WILL THEY BE BUSY ACTING IN THEIR OWN BEST INTEREST PUTTING OUT THEIR OWN FIRES, OR AT LEAST TRYING TO?

I WOULD SUGGEST THAT IT WILL BE EVERY MAN FOR HIMSELF AT THIS POINT AND THAT THIS 
WILL GET UGLY REAL QUICK WITH ALL THE DEBT, MALINVESTMENT AND OVER VALUATION IN THE MARKETS. ALL THE HAPPY KUMBAYA FEELINGS OF THE LAST CRISIS ARE GONE, EVERY CENTRAL BANK HAS TO TAKE CARE OF IT'S OWN PROBLEMS AT THIS POINT,BECAUSE THE PROBLEMS HAVE ONLY GROWN SINCE THE LAST CRISIS. IT REALLY IS A VERY DANGEROUS DARWINIAN PROPOSITION AT THIS POINT.

WHO IS BIG ENOUGH TO SAVE CHINA, EUROPE, JAPAN AND THE U.S.?

WHO IS STUPID ENOUGH TO TRY? 

PROBABLY A SLEEPLESS WEEKEND FOR MANY IN POWER AND BANKING............



Beer-Stier

No comments:

Post a Comment