Stock Market: Correction or Crash?

[foragefarmer]

"Unlike saying the budget will balance itself??? "


Rand Paul spoke for nearly 13 hours in the Senate against the recently approved budget by the GOP.

So CaseIH, what ever happened to those so called fiscally responsible Republicans who bashed Obama for eight for running deficits and now themselves will run a one Trillion $ deficit?

Was your above quote directed southward, as it sure seems to apply?

[errolanderson]

An opinion, but all artificially supported central bank asset bubbles are now at-risk, not just stock market values. This includes real estate globally. Central bankers are trying to deflect last week’s crash as no big deal, business as usual. Rate hikes ahead as planned.

Not a chance (IMO) . . . Last week’s was the straw that broke the central banker’s back. Their manipulative power is now greatly diminished and markets must now fend-for-themselves . . . .

[biglentil]

The central banks create the boom with loose fiscal policy and then withdraw the stimulus every 8 to 10 years to create a bust. Through the derivatives markets and with an unlimited bankroll market they also have the ability to set commodity prices. They do this to keep a lid on inflation. Its an artificial economy built on artificial money since the 70's. Therefore its very difficult to predict where the market is going it all depends on how the central banks throttle it. One thing appears certain as time moves on so does inflation (except in grain prices lol). They work damn hard keeping everyone worried about deflation to keep money velocity under control. Right when the market was building inflationary expectations they nipped it in the bud.

[helmsdale]

Nikkei off -2.3% or so, but djia futures up 1.5%. If I was actually playing this market right now it be sick. My paltry rrsp has been sitting in cash for 4 years now... it can stay there a while longer.

[errolanderson]

Strong rebound in U.S. equities . . . about 50% recovery off last weeks wipeout. Technically, bounces may recover as much as 66% off recent lows, before selling erupts again. VIX will awaken again (IMO).

[macdon02]

Anyone looked at a TSX chart? Lol why would anyone invest in Canada? We have basically flat lined since '14. You have to be extremely selective and lucky to win in this country. I guess if you invested USD into Canada you'd win on the exchange but no reason to buy equities otherwise.

[Rareearth]

Can’t remember where I saw it but there are Wall Street companies being sued for intentional “VIX Fixing”

. Basically they place buy or sell future options bids/offers with no intention of ever having them filled, something about no margins, pulling of bids I can’t remember exactly how it went. Serious enough to the exchange Police😬 are involved

[malleefarmer]

U.S. has a 100 trillion in unfunded liability. Basically the country is insolvent. Congress and the Dunce don't get it.

Wasnt this Govt debt,a problem for usa maybe 8 or so years ago and has ballooned out.

Speaking of which New Zealand a economic powerhouse apparently had strong conservative govt for not sure how long maybe 12 years but traded with surplus may quite a few cuts to get it back in shape.

A socialist leaning govt been in for maybe 6 to 8 months are talking deficeit in there budgets already with some of there spending programmes must be hard to balance correct

[Rareearth]

Whistleblower Alleges Manipulation Of Cboe Volatility Index: Wall Street's most widely followed gauge of future stock market volatility is being manipulated, a law firm representing an "anonymous whistleblower" alleged in a letter to U.S. regulators and seen by Reuters. The accusations prompted Cboe Global Markets, the financial exchange operator that is home to the Cboe Volatility Index <.VIX>, to ask Wall Street's self-funded regulator, the Financial Industry Regulatory Authority (FINRA), to look into the matter, two sources familiar with the situation said. In addition to the letter, the law firm said it had filed a formal complaint with regulators on behalf of the unidentified client. The complaint says regulators should look at trading data for proof of alleged manipulation. The letter, dated Monday, alleged that trading firms had taken advantage of the way the VIX is calculated in order to manipulate the index, costing investors nearly $2 billion a year. The whistleblower's letter alleges a flaw in the calculation of the VIX that allows trading firms to manipulate the VIX index by posting quotes for S&P 500 options, without actually trading. So far, regulatory agencies have not commented. (Source: Reuters)

[errolanderson]

Now stir in a global retaliation to Trump’s steel and aluminum tariffs. Things could get pretty messy, pretty quick. What comes around, goes around when it comes to trade protectionism (IMO).

Strap-in . . . Big equity/ commodity volatility possible ahead.