Crude Collapse / Stock Washout / Deflation / Real Estate Fallout

[helmsdale]

When does "capitulation" set in? So far the sell down has seemed relatively orderly. After Christmas? After year end statements get mailed out?

[HITTGrapevine]

Stock market bear country . . . .

Reported S&P Index stock fallout from recent highs.

Facebook down 39%
Citigroup down 35%
Apple down 33%
Amazon down 29%
Home Depot down 24%
Walmart down 21%

Central bankers had better get their stories right.
Corporate bankruptcies are set to soar in 2019.

And US fed raises rates?? WTF

[malleefarmer]

Done some light reading about libor rates and commentary errol sadly might be half correct errr or more

[farmaholic]

An odd story from about 50 kms away, a Co-op gas station and cardlock, which is part of a larger association, from a community of about 800 people has been closed without any member consultation OR notice. It is one of two gas stations in the community. That's what happens when decisions are made by people who don't live in the community. A spokesperson for the Co-op Association claims the location lost over a million dollars(1.136) over the last nine years. The community would like to talk but the association says its a done deal but are willing to discuss the issue of the land and building with them.

More consolidation.

Did it lose money on operations even after Federated's dividend was paid to the retail?

Our local Co-op has lost money on operations but the Federated's dividend to it makes it "profitable"....to be able to pay dividends to it's members. The local Co-op is a bit of a renegade Co-op and went against Federated's will and installed it's own huge bulk storage tanks and delivers fuel from them to it's members instead of from minibulk tank farms, it is completely a stand alone co-op...one store location. If it would have joined other co-ops to form a bigger one, in all likelihood it too would have been closed by now and farmers would be served by other co-op locations within the larger association.

[errolanderson]

And US fed raises rates?? WTF

HITT . . . Déjà vu 1937 when the Fed hiked rates at the wrong time.

[sawfly1]

So what was the result Errol.
WW2. Or something

[recapped]

https://www.federalreservehistory.org/essays/recession_of_1937_38 https://www.federalreservehistory.org/essays/recession_of_1937_38

[errolanderson]

So what was the result Errol.
WW2. Or something

sawfly . . . the debt clock has now struck midnight.

How this plays out is anyone’s guess, but we all will be impacted. Debt is now now longer an asset generating growth, rather a steep liability. Cash has become king as prices deflate. Gold prices will likely remain supported on investor fear.

Trump is rumoured to be threatening to fire Fed chair Powell. I guess no one told him that the Fed chair doesn’t report to the POTUS.

Central banks have to pull in debt . . . Money printing only makes the problem worse. Keynesian economics has totally unravelled (IMO). VIX volatility may become extreme. Now the games begin for real . . . .

[the big wheel]

With the so called oil collapse which I don't believe is even happenning as bad as they say.
Where is all these economic growth and employment numbers coming from furling desire for rise to interest rates?

[biglentil]

sawfly . . . the debt clock has now struck midnight.

How this plays out is anyone’s guess, but we all will be impacted. Debt is now now longer an asset generating growth, rather a steep liability. Cash has become king as prices deflate. Gold prices will likely remain supported on investor fear.

Trump is rumoured to be threatening to fire Fed chair Powell. I guess no one told him that the Fed chair doesn’t report to the POTUS.

Central banks have to pull in debt . . . Money printing only makes the problem worse. Keynesian economics has totally unravelled (IMO). VIX volatility may become extreme. Now the games begin for real . . . .

I sense a tone shift in respect to gold by many in the mainstream. Good on ya Errol maybe a few will be spared with their shirts entact.