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Thread: World Financial Markets suffer Myocardial Infarction

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    Default World Financial Markets suffer Myocardial Infarction

    (snip)"Today the intraday market crash was the largest since 1987, at the low the DOW touched 9,870 and was down 992 points or 9.1%.

    This crash happened in the same manner as the crash in 1987, with a currency melting down in the background. Then it was the dollar, today it is the Euro.

    Is this a one day wonder like 1987? NO! It is a continuation of the debt events that have been creating crisis after crisis since even before the year 2000 and are accelerating. Great risk remains as I’ve been warning. You are going to continue to see debt driven events circle the globe, and they are very likely going to lead to “other” events. You should be worried and you should be prepared.

    Now, let’s talk about today, the drop was NOT a “fat fingered” mistake. The backdrop was set for a crash with the movement in currencies over the past several days. Today Harry Reid made a statement that he was going to support legislation to break up the big banks and that it and the audit the Fed bill would make it to a vote. KABOOM. The central banks who own all the computers and all the stock hit the sell button. The lesson? Don’t mess with the people who control the money. This is yet another historic event where the central bankers are flat out blackmailing the people in order to get their way. The message is, “keep your hands off or we crater the markets.”

    This is why it is so important WHO controls the money – and make no mistake, the private central bankers make ALL the money, not the government. WHO controls it is FAR more important than WHAT backs it! The solution? Sovereign money as would be produced under the provisions of Freedom’s Vision.

    That said, the debt around the world, as I’ve been saying, is completely out of control and once saturation has been reached there is a phase transition where adding more debt SUBTRACTS from economic productivity:



    Note that I am not showing you a stock market chart, I am showing you a chart that is directly related to DEBT, the root cause not just a symptom.

    Once saturation has been reached, it is impossible to cure a debt problem with more debt. Sure, things can move higher for awhile, but it is (and it was) FALSE. This is not over folks, it won’t truly be over until the root issues of our money system are addressed.

    Today you had DEEP pocket money step into to stop the decline, it is a warning. Confidence has been eroding and that confidence may have just begun a phase transition of its own. That’s the way it goes. Now the markets are going to have to prove they are stable over the next few trading days. I’ll go over the technical picture later today or tomorrow morning.

    *UPDATE: The Proctor & Gamble excuse is nothing but a rouse. Below are two charts, one showing the S&P futures (/ES), the other showing PG for each minute. It is clear that the market headed down FIRST, PG second. We are a sick and delusional society that cannot even accept what we are doing to ourselves, SICK. CNBC should be sued and they should be removed from the air.



    with huge thank-you's to the folks at Economic Edge

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    Default Re: World Financial Markets suffer Myocardial Infarction

    (snip)"Credit Mauled in ‘Whiff of ’08’ as Athens Burns: Credit Markets

    May 6 (Bloomberg) -- The 13-month rally in credit markets is unraveling as Europe fails to contain its debt crisis.

    Money markets showed banks may be more reluctant to lend to each other than at any time over the past six months and a derivatives index used to protect against European bank failures soared the most on record. U.S. company bond sales are poised for the slowest week this year, while in Europe they all but disappeared, according to data compiled by Bloomberg. Emerging market and mortgage bonds also tumbled.

    Investors are increasingly concerned that a 110-billion euro ($139 billion) rescue package for Greece won’t work, escalating into a sovereign crisis reminiscent of the subprime mortgage meltdown that pushed Lehman Brothers Holdings Inc. into bankruptcy. U.S. stocks plunged the most since 1987, before paring the decline, while Treasuries surged.

    “I don’t think we’re in panic mode, but there’s a little bit of a whiff of 2008 here,” said Scott MacDonald, head of credit and economics research at Aladdin Capital Holdings LLC in Stamford, Connecticut, which oversees $12.5 billion. “We had the subprime debacle in the U.S. Does Europe relive that in terms of the massive leveraging they’ve done to keep the social model running? Because then it’s a worry of not 110 billion euros for Greece, but it’s potentially a project that could go up over 1 trillion euros or more.” "(snip)

    from

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    Default Re: World Financial Markets suffer Myocardial Infarction

    I don't want to spread gloom and doom unnecessarily, but the whole Greek bailout situation is now starting to get extremely dicey ...



    I'll leave it to interested DD readers to check out the full gamut at the above link. However, the gist is that the EU is attempting to force non-euro EU members to fund a Greek bailout. The major concern is that if something isn't nailed down to reassure worldwide investors prior to markets reopening tomorrow, that worldwide financial markets may indeed face a 'black monday'. This will be based on the relatively unpublicized fact that European, American, Japanese and other worldwide banks all have trillions of dollars worth of 'exposure' to Greek / Portuguese / Spanish / other euro denominated gov't securities that are all on the verge of default.

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    Default Re: World Financial Markets suffer Myocardial Infarction

    The choice is really simple, not easy, but very simple. Either the Greeks take a very severe austerity package or they withdraw from the Euro, reintroduce their own currency, endure very high inflation and then take a very severe austerity package.

    Like the Chinese physician said, "western doctors are too quick to amputate, give it time and it'll fall off on its own."

    Z

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    Default Re: World Financial Markets suffer Myocardial Infarction

    ^^^ true on its face. However, unlike your hypothetical amputation patient, Greece's 'disease' is highly contagious !

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    Default Re: World Financial Markets suffer Myocardial Infarction

    There's still no clear answer into what happened during that sudden tankage. All sorts of speculation is floating around. My favourite is that Taleb's fund bought a bunch of index downside, the counterparty had to hedge, tipping the balance in an already fragile day, then the liquidity providers got the fuck out of the market when it was tanking
    Once again, the conservative, sandwich-heavy portfolio pays off for the hungry investor
    - Dr John Zoidberg

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    Default Re: World Financial Markets suffer Myocardial Infarction

    Taleb causes a Black Swan:
    http://online.wsj.com/article/SB1000...699461084.html

    How's that for irony? Or market manipulation maybe?
    Once again, the conservative, sandwich-heavy portfolio pays off for the hungry investor
    - Dr John Zoidberg

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    Default Re: World Financial Markets suffer Myocardial Infarction

    another 'famous' financial figure, Gerald Cilente, has a somewhat different take on last Thursday's events ...

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    Default Re: World Financial Markets suffer Myocardial Infarction

    Quote Originally Posted by Zofia View Post
    ...
    Like the Chinese physician said, "western doctors are too quick to amputate, give it time and it'll fall off on its own."
    Sure sounds Chinese all right. But they forget/ignore that gangrene spreads to the rest of the body as well; the parts are not isolated. They should put that idea in the opium pipe and smoke it.
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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