Markets Tank Hard
By Nicole Belle Wednesday Nov 07, 2007 7:16pm(Guest Blogged by Hale "Bonddad" Stewart)
This is a post from my blog, with some additional commentary.
The markets had a really bad day today. The fundamental reasons are a huge writedown at GM of $39 billion, China 's plan to diversify it's currency reserves, and ongoing concern about the credit markets.
Bloomberg: General Motors Corp., the world's largest automaker, reported a record $39 billion quarterly loss after three money-losing years forced the company to write down the value of future tax benefits. The loss, excluding the tax writedown, was $2.80 a share, more than 12 times analysts' estimates. Mortgage-related losses at GM's partly owned finance unit overwhelmed auto sales that were the highest ever. GM shares fell 5 percent, giving the Detroit-based automaker a market value of $19.4 billion, about half the size of the third-quarter loss. GM signaled that it won't generate enough earnings to use the benefits. Chief Executive Officer Rick Wagoner cited concerns about defaults on subprime mortgage loans at GMAC LLC and auto sales in the U.S. and Germany . Slumping U.S. sales in the past half year ``feel like the conditions we're going to face,'' Wagoner said. ``This all suggests that GM thinks that things are so ugly out there that they can't see the possibility of profitability for many quarters, maybe even years,'' Bradley Rubin, an analyst with BNP Paribas in New York, said in an interview.
From Bloomberg: The dollar fell to a record versus the euro and the lowest since 1981 against the pound after Chinese officials signaled plans to diversify the nation's $1.43 trillion of foreign exchange reserves. The U.S. dollar also declined to the cheapest versus the Canadian dollar since the end of a fixed exchange rate in 1950 and a 23-year low against the Australian dollar. The New York Board of Trade's dollar index touched to 75.077, the lowest since the gauge started in March 1973. ``The dollar sell-off was sparked by concern that foreign central banks' diversification away from dollar assets may accelerate,'' said Paresh Upadhyaya, who helps manage $29 billion in currency assets at Putnam Investments in Boston. ``The momentum to sell the dollar still persists and I expect further dollar weakness before year end.''<!-- blockquote--> The dollar has been reeling since the rate cuts, and this certainly did not help matters any.
Let's look at the charts to wee what happened.
This is a very ugly daily chart. 1.) The overall direction is down -- big time down. 2.) There are three downward gaps that occurred on heavy volume. That's not good. 3.) The market closed at the low point, on heavy volume just after the third gap down. That's a triple whammy of bad events. Traders didn't want to hold positions overnight because they were concerned something would happen between now and the open that would lower stock prices.
Why are gaps down bad? To Quote Bulkowski from Encyclopedia of Chart Patterns , "...in both cases [of upward and lower gaps] some type of exuberance is driving the stock to create a gap (page 241)." In other words, there is a strong emotional reason for the change. It's safe to say that a downward gap is a sign of extreme concern. When there are three gaps on a single day, it's s sign of really extreme concern.
The 9-day chart shows the SPYs were in a three and a half day consolidation/trading range. But they broke through support on heavy volume at the end of trading.
Breakdowns indicate a change in sentiment. When they occur on heavy volume sentiment it's that much more intense.
The SPYs daily chart shows we have broken through support and the 200 day SMA on heavy volume. Again a triple whammy.
The one day QQQ chart also shows three downward gaps that occurred on heavy volume. Also notive the index sold-off at the end of trading on heavy volume.
The 10-day QQQQ chart shows they too were in the middle of a consolidation pattern, but they also broke through support on heavy volume at the close of the market. This is not good.
The daily QQQQ chart shows the index broke though the support of the 10 and 20 day SMA on heavy volume.
That's very bad. In addition, consider these two charts from stockcharts.com.
NASDAQ Breadth
NASDAQ new highs/new lows
Both of these charts tell us that fewer and fewer NASDAQ stocks were responsible for the index's gains. That indicates there was a lack of breadth across a wide swath of stocks.
Short version -- this day was terrible. It did a lot of technical damage. On top of that, there was a terrible confluence of negative events that just sunk the market.
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All part of their psychotic plan to take over America, the markets start fluctuating and they tell us bullshit about the need for security amid social unrest and they unleash Black-water on us...6 years ago that would have been a conspiracy theory, but now it's reality! what a bitch huh?
Good. I'm sorry this correction hasn't been going on for years now. I guess that's what happens when you just manipulating market forces and keep printing more money so the rich can become richer...
The worlds movers and shakers wanted globalization and now they have it. The only problem though was that the US dollar didn't play a dominent role in the process of allowing other countries equal footing financially. Now you have two giants in China and India and their people would like to have the same creature comforts that we have enjoyed all these years while having the worlds reserve currency.
We have been living on debt that is financed by other countries. It's simple economics which most Americans are brain dead about.
I told people just four short years ago to start buying the only real money man has ever known. Gold and silver. At the time gold was at $265.00 an ounce. Today just four years later gold is pushing its historic high of $850 and within a couple of years will be blasting past $3,000 and ounce.
Cry all you want as gas prices keep rising along with inflation. This country has been like an addict requiring a larger and larger fix ( financially ) and every time the Fed gives it to you in the form of easy credit, you dig your hole deeper and deeper.
The system is broke. It was a ponzi scam from the day it was created in 1913. Dump the Fed and go back to a constitutional treasury. You can still have paper dollars, but this time they will be backed by precious metals rather than hot air.
miss_kitty @ 2:
Oh and I guess a lot of other nefarious shit goes on as well.
Don't worry! Never fear! We can partially fix the problem by shoving the risk from corporations onto taxpayers, because apparently welfare is noble if you're a corporation.
"(Fed Reserve Board Chairman) Bernanke did suggest that one way around this risk would be to have the federal government take on the risk of subprime or jumbo loans that Fannie and Freddie buy."
GM lost only $39 billion?
That's like only $39 thousand million when you look at it that way. What's 3 months in a man's life, anyway?
Credit default derivatives. Ooh, look out.
...
The spin we've come to detest in the political sphere is projecting into the financial world.
...
Oh My Godlessness!
Where are the circuit breakers!
GM's relatively new 'saviors', Rick Wagoner and Bob Lutz, are really doing great, setting records never before seen (except perhaps at ENRON and Worldcom).
Gee, and they're doing everything right, it's just the stupid US car-buying public that resists those beautiful, less-than-15MPG, behemoths.
Since they're losing money on every sale, and also every car they finance through GMAC, prudent management would decide to stop selling and financing cars. What they should do is build all their Hummer/Escalades, drive them directly to the recycler, and invest all the money they save by not selling/financing them in 'contributions' to politicians. This will assure passage of legislation providing sufficient tax benefits for the innovative direct 'assembly line to recycling bin' program, to enable them to continue their salaries, and provide the $100+M 'golden parachutes' they'll exercise when they finally drive GM over the very last cliff.
You want to take a look if you dare at some really ugly charts. Check out what your local bank looks like. If that doesn't make you shit in your pants and close your accounts, nothing will and your a lost cause.
Banking Crisis.....What banking crisis?
http://www.financialsense.com/Market/barbera/2007/1106.html
Now you know why Mr. Decider is movin' to Paraguay....
And I hear he's promised 'Sellout' Reid, Miss Nancy and 'The Rabbit' Emmanuel jobs there.
As stable boys. They all bein' experts at
bullhorseshitJust friendly advice from a capital markets expert. I wouldn't advise calling up your broker or whatever and taking an anti- dollar position........news comes out AFTER the fact, and if you try and trade it, and there is a HIGH degree of likelyhood that if you take an anti-dollar position you are going to get spanked.......this isn't to say that the dollar is done losing value, but it is HIGHLY likely that it will pull back to a bit over it's mean price before taking more runs on the low/high (depends on what you are trading with)
V V
I would be interested to see if the subprime problem can be traced back to, or has a genesis in, Bush's push for the so called "ownership society" and any policies that lie therein. Seems to me such a lineage would be the final nail in the coffin for the debate on who is the "worst president ever."
I've not seen an analysis on this, and have not the skills to do it myself. Any takers?
Karma .......... yup, it's a bitch ...... ah well vote for nightmare and destruction a few times and see what happens I suppose ......
Vitam Vas @ 12:
While the dollar will continue to trade up and down, the trend is down and for good reason. This may be the time to repeat the words of W.D. Gann. Mr. Gann is considered by many professionals to have been one of the greatest commodity and stock traders (and thinkers) of all time. Here are Gann's words.
"When a stock or a commodity advances into new territory or to prices which it has not reached for months or years, it shows that the force or driving power is working in that direction. It is the same principle as any other force which has been restrained and breaks out. Water may be held back by a dam, but if it breaks through the dam, you would know that it would continue downward until it reaches another dam, or some obstruction or resistance which would stop it.
"Therefore, it is very important to watch old levels of stocks and commodities. The longer the time that elapses between the breaking into new territory, the greater the move you can expect, because the accumulative energy over a long period naturally will produce larger movements than if it only accumulated during a short period of time."
If gold can close above its 1980 peak price of 850 -- it will have overcome a resistance level that has held it back for 27 years! Thus, a decisive closing about 850 could bring about at least a doubling of the current dollar price for gold.
Suddenly gold is in the news. The public is reading about gold an actually asking questions. "Why is gold going up?" "What's the meaning of the rise in gold?" "Should I buy gold?" "Is there something wrong with the dollar?" "Where does one buy gold?" "Is silver related to gold?" "How much does it cost to buy a gold coin?" "What is GLD?" "Who sells gold coins, and if I buy a few, where should I keep them?"
It really is sad. Here's gold and silver ("specie") mandated as the only money by the Constitution of the United States. Yet our citizens have been kept in the dark about gold for generations. Instead, Americans have been touted on the value of fiat money, rudderless money. This fiat money is created by a private banking cartel (the Fed). This transfer of US money-creation has never been authorized by a Constitutional amendment.
The whole system of fiat (paper) money is the greatest fraud ever perpetrated on the American people. Our defense against this "counterfeit" money is, and always has been, Constitutional money -- gold and silver. Federal Reserve Notes (currently termed "dollars") are a blatant lie. Today, rising gold is dragging that lie out into the open. Ultimately, the truth will out. Rising gold is shouting the truth -- "gold is money, Federal Reserve Notes are a lie and an abomination."
While all eyes ares on the dual housing and credit crises, a new study revealed the continuing and steady decline of employer-based health coverage in the United States. Once the lynchpin of the U.S. health care system, workplace health insurance now covers only 59.7% of Americans, down from 64.2% in 2000. And making matters worse, surging health care costs, insurance premiums and employees' own contributions continue to exceed inflation and the growth in wages.
For the details, see:
"Employer-Provided Health Coverage Continues to Decline."
Andrew, I couldn't agree more with you! Unfortunately, my friend, it is doubtful if it will happen.
treasury yeilds are narrow and tightening, less basis points between the 2 year and 30 year notes, oil at an all time high, gold at an all time high, 8 out of 10 commodities are at 52 week or all time highs, housing prices are dropping, defaults and foreclosures are sky high, the dollar is majorly tanking, other world currencies and bonds are more valuable than the u.s.a.'s, more americans are uninsured and unemployeed, than in 2000. the only people who have benifitted from this economy are the top 1% of the earners in the country. and mr bush thinks they deserve t pay LESS in taxes . and corporations need a tax break too. P-LEASE!! the reason the unemployment rate is low is because the government does not include the people who have stopped looking for work or whose employement benifits have run out.
so my question to anyone of the bush 21%ers is: what is going to turn this around?
JerryM @ 14:
Your problem is you're thinking like an enlightened leebrul. You need think like a winnut, it's all Bill Clinton's fault!
Hillary Clinton purportedly will support more free trade. Wonder how that is going to help the trade deficit?
Dick Cheney has a plan. He's already got his flight booked to Halliburton's new headquarters in Dubai http://www.abcnews.go.com/GMA/Politics/story?id=2943017 with a suitcase full of our tax dollars.
Preacher Boob @ 9:
if you're referring to the trucks (which serve a purpose) and SUVs (which are generally piloted by a single woman on a cell phone, not a family), then you have a point. their cars, not so much. do your research -- the only Japanese cars that get better fuel economy are little 4 cylinder egg cars. GM has made tremendous strides in the last 2 years to improve their products. I won't discredit you for a second that their cars were going in the completely wrong direction from the 1980s until about 2004-2005. I myself bought a 2007 Saturn ION with the 2.4 engine, and I pull fuel economy beyond what the EPA rating is. their V6 models use modern OHC designs, just like the Japanese, and provide up to 30 mpg on the highway (the city varies, depending on the size of the car). the Japanese autos by comparison:
2008 Acura TL, 3.2L V6: 17/26 (city/highway)
2008 Honda Accord EX: 17/25 (with a 6-speed)
2008 Toyota Camry XLE: 19/28
2008 Nissan Altima 3.5L V6 SL: 19/26
by comparison...
2008 Chevrolet Malibu 3.6L V6: 17/26
2008 Saturn Aura XR: 17/26
2008 Ford Taurus Limited: 18/28 AWD: 17/24
2008 Chrysler 300 Limited: 19/27
I'd say Detroit has caught up. :)
sorry to rant, but I'm tired of the bias amongst liberals (and I speak as one, but one that loves American cars) that every single American car is an uber gas guzzler. I understand that there's people in the country that buy TRUE BEHEMOTHS (truck-based SUVs) and they only do it for the machismo of driving a big bruty truck......van thing, but that's what they're entitled to, they spend the money. if you want to get technical, the money spent on importing (there are quite a few Japanese models that aren't produced in the USA still, some models are produced inland and others from Japan as well) the cars via ships from overseas use more gasoline than a multitude of American-made SUVs in one run than the SUVs consume in MANY YEARS.
that said, this is my first comment on this site in the 3 years I've viewed it. it's a shame that so many jobs have been lost to other countries, but who signed NAFTA into law? yep, William Jefferson Clinton (god bless that man).
Oil, folks.... Peak Oil....
ProDem @ 17:
It will happen my friend, because the rest of the world is signaling that it must happen. I doubt that many here realize that Congress which controls weights and measures currently states that all the gold that the US gov't lays claim to is only worth $42.50 an ounce. What you say!?!?!?! How? When the rest of the world says gold is worth nearly $850 an ounce.
That's right. Our elected leaders have let the Federal Reserve a banking cartel get away with financial murder by turing a free people into indentured slaves, never to get out of debt. This is how you control a society and it is what the founding fathers knew by creating a US Treasury, not a central bank that charges a government and in turn its people interest for borrowing money that we should never have had to go begging for.
If we were to get rid of the Fed, you would aslo get rid of the I.R.S. and go to a flat tax or consumption tax. If you check out the banking charts I mentioned above, many are close to insolvency. Gas going to 4 or 5 dollars a gallon or people just stopping payment of their monthly credit card bills would be the last straw to push all of them over the ledge.
No matter how one looks at it, this will not end well.
I love it, people are stupid, if there is a real pandemic crisis, it doens't matter where you hide, bc opps it's all crap. Also, MSM love to call it sup-prime and blame it on those minorities (who should never be allowed to buy homes) but go to
http://www.foreclosure.com/, go to the states w/the big housing problems, you'll see it was cities that experienced alot of growth (and a few area's that do not have a manufacturing sector left). Most of the homes in my area that are up are around 300k (twice as much as the homes in the other part of the city), also my area was a big repub fund raising ground, look at Las Vegas, and all of FL (and look at the home prices). The thing is, a lot of these people, have some money, but due to their housing situation they won't be investing (seems like a cycle is being created here). http://www.pbs.org/wgbh/pages/frontline/shows/wallstreet/weill/demise.html read it and weap Do a survey of many of the finacial websites, and economic schools, and they started to believe (bc they know everything) that the act was no longer good, deregulation. The more the better. Also, some @ WSJ still think what is going on is the prime example of why we need more deregulation (I think they will believe that till they loose their home). I love people!.
P.S. Even though a lot of the people in my area were big fundraisers for the Bush (to be specific) I really do feel for them right now, and my heart goes out to them.
hey....whats the current exchange rate for the Peso,Pound,and what ever they have in Canada....for the last 4-6 years the peso has been around 10-11 to 1 dollar....I'm curious about the Pound(Britain) and Canada.
#22 Mencha
Back in the 80's when Ford and GM were building rust buckets with functional obsolescence built-in designed to keep Americans loyal to dealership repair shops and new American car show rooms, little upstart Toyota and Honda came along with quality cars that quickly gained the rightfully deserved reputation of being virtually trouble free for 100,000+ miles . Now because of the Japanese the Big 3 US auto makers have been reluctantly forced into building more reliable cars but it's too late for many Americans such as myself with not so short memories of the days when the arrogant American auto makers thought they had us all over a barrel before the Japanese came along. Is today's news regarding GM and last month's news regarding Ford a little business karma? Me thinks so. All the big 3 can go belly up as far as I'm concerned. I'm a Honda customer for life now.
mudshark @ 26:
The Pound is currently trading at 2.11 to the dollar.
www.thebulliondesk.com
Shss @ 25:
well I wouldn't....they can all go to hell as far as I'm concerned.....they raise money for them and now...you want me to show some sympathy....sorry never gonna happen....Their the people who kept this admin in power...I hope their money keeps them warm at night...while the rest of the country who opposed theses clowns deals with the aftermath....
Geeezzz....I love people too...but have a very low tolerance for this kind of stupidity
Andrew @ 28:
thank you....I think that's the most the pound has been worth in a very long time....in 1963-65...the pound was worth...3.00-3.50.....
mudshark @ 30:
when I was in the UK it fluctuated between 1.60-1.65-early 90s. and hell, Canadian money not long ago was .75 now it's around 1.05.
and guess what.... It ain't Bill Clintons fault.All those repugs with their "It's BC's fault"... can all kiss my ass.
add to that the writers strike
so support the writers by signing the online petition
http://www.petitiononline.com/mod_perl/signed.cgi?WGA
My 401k is up 19.2% for the past 11 months. I have made almost $5,000.00. Though I am sure a part of that has to do with the company (SuperValu) matching the 6% a week I contribute. So America is on the verge of a recession. My investments are overseas, so I hope Bush Co. continues to run America into the ground.
Vitam Vas @ 12:
Gold will no less than double from here as a function of the decline of the dollar and gold's premier function as an alternative currency, or currency of last resort. There are many fundamental reasons for the dollars' decline and all the bells are ringing. Think "derivatives" (highly leveraged bets that will not perform and, when priced to market, will implode).
They have not only bet the ranch, they've bet your ranch.
...
I doesn't seem to me that the matter is too complicated. We've been hearing that (budget) "deficits don't matter" and we hear that free trade works, as year after year, we incur record trade deficits. I suppose one can get away with a budget deficit, so long as the economy is growing at a greater percentage that the deficit, which is not the case. The trade and budget deficits are symptoms of the underlying disease, which is corrupt corporate owned politicians in Washington. Right now, the Presidential election is shaping up to be between the free trader Clinton, versus the free trader Republican whomever. Since some of the trillions of dollars being exported come back in as equity investments in our corporations, our politicians are becoming increasingly foreign owned, inducing economic treason.
Seems that the war in Iraq, which the government borrowed to finance, might be paid by the vicarious tax of inflation.
The U.S. has been complaining that the Chinese Yuan has been artificially kept low in order to enhance Chinese exports. If so, that would mean that the Chinese Yuan is on sale. If China relents and allow the Yuan to float, that would mean that it would take more dollars to by yuan, and conversely, someone holding yuan could buy more dollars. In that case, prior to a float, it would make sense for China to reduce dollar holdings, and that may be happening. In any event, it is the U.S. government's representation that the Yuan is currently on sale. ;-)
miss_kitty @ 31:
I have some Canadian neighbors down south...and their always complaining that their money doesn't excange well in to pesos....2 years ago....1 dollar US to 1.50....Canadian....so the dollar was worth more....
mudshark @ 29:
Hey, but those people are loosing their money, so they won't have it to keep them warm at night.
Shss @ 38:
serves em right.....
Andrew @ 10
Banking Crisis…..What banking crisis?
Those aren't ugly charts. Those are fugly charts. Man, oh man.
So tell me Sparky, how much are your options worth today?
Poor, nothin' to lose and just watchin'.
So should I spend all my money, or save it?
mecha at #22
2008 Acura TL, 3.2L V6: 17/26 (city/highway)
2008 Honda Accord EX: 17/25 (with a 6-speed)
2008 Toyota Camry XLE: 19/28
2008 Nissan Altima 3.5L V6 SL: 19/26
by comparison…
2008 Chevrolet Malibu 3.6L V6: 17/26
2008 Saturn Aura XR: 17/26
2008 Ford Taurus Limited: 18/28 AWD: 17/24
2008 Chrysler 300 Limited: 19/27
------------------
1994 BMW 318-i 30 mpg very consistent---bought used in '99 and it doesn't look like a taurus/jaguar
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all those guys should catch up lots quicker than they do.
detroit is too slow to react to trends. volkswagan beetles were thick here before detroit even tried to develop inexpensive, fuel efficient cars. and what did they finally come up with--the chevette and the pinto.
i only test drove a chevette-no way i would have bought it. so flimsy, weak, shabby just plain ticky tacky--i'd have been killed the first time i tried to merge. and the pinto woo! 18 mpg. for a small, uncomfortable, ugly car...not to mention the explodablility--mine didn't so no complaints here. after that crapper tho i'm a german car man for life.
at any rate.....this is just the beginning........
Yep... I knew this is what exactly would happen as Bernake cut rates last week in a desperate attempt to artificially inflate the stock market. Now that the rate cut further plunged the USD further through the core of the Earth, it prompted China to dump it's dollars, which caught on to yesterday's stock market freefall.
Heckuva job you're doin' there.
mudshark @ 43:
of the end...and the begining?
http://en.wikipedia.org/wiki/Bear_Stearns
mudshark @ 26:
Whatever they have in Canada?
I'm speechless.
Isn't this posting a day late?
MargeAggedon @ 46:
yeah ...I know......yikes......I've never been there and have never had to deal with their currency...........ok..my bad..........I have a feelin it's a Canadian dollar...but ....
Tech stocks took it on the chin today, and they are (were) the only thing still propping up the NASDAQ.
Blue Buddha @ 44:
Just a reality check - Al Gore thinks the world of Bernake as do many other democrats. The Fed, starting with Greenspan, has morphed into a printing press. Everyone is addicted to this.
mudshark @ 26:
I don't know about the peso but the last 2 months I have made a thousand dollars a month extra by buying Canadian dollars. And not on paper. I actually bought them. My banker thought I was loopy at first. Now she looks at me differently. I'm not going to buy any more because this is only a hedge against the dollar for my grandkids. If you can afford the pricy exchange rate I recommend it. It had better be money that you had not planned on spending anyway, though.
but..but...how will we continue to send money to Pakistan?
MargeAggedon @ 46:
unfrozencaveman @ 47:
It is... isn't it?
Jo @ 51:
Gold is always the better hedge over the long term as you are not at the mercy of a government and its whims. It does have its artificial lows and highs, but what other vehicle has thousands of years proven track record of capital preservation?
the shrub and his minions have done what they could to subjugate the planet and the planet will have it's revenge.
Iran stopped trading in dollars about two weeks ago. now china is dropping $1,500,000,000,000 onto the currency market. add that to the US finally acknowledging the $9,000,000,000,000 plus (truly)Gross National Debt.
As I have been following the financials for the last three years, it was made obvious three years ago that US debt is held by foreign powers for the first time in history. Something like $4,500,000,000,000 or more is held by China, Japan, Great Britain, Saudi Arabia and a few others.
Oil is going up because the dollar is falling and has no value against real commodities any more. There is not even any american industrial productivity to help prop the dollar up. essentially there is no bottom for the dollar to land on.
so you can literally 'bet your bottom dollar' because that's where it's going.
To their credit, the rest of the world waited through the early Iraq war/occupation for the US to com to its senses. I'm willing to believe that they are simply making it implausible as hell for the US to start another oil-theft war/occupation. After the AIPAC speeches of the Democrats and the kyl-LIEberman senate resolution, it is more than obvious that the Dems are in on the deal as well as the neocons/republicans. The world has had enough of us and we have proven with Iraq, Afghanistan and the new Africom that the world has no need to fear us.
And I have not spoken of the people in the world who outright hate the US. We certainly have given them many reasons.
unfrozencaveman @ 55:
I would like to buy gold but would like to buy it with my Canadian dollars and I don't have the slightest knowledge of how to do that. Would I have to go to Canada to buy the gold maple leaf or bullion with me Canadian dollars? I live in Maine and it would be a day's trip.
Blue Buddha @ 54:
It might have been posted based on the 220-point drop in the market, before it rebounded. for a while today, it was starting to look like a run on the market.
jen8933 @ 53:
Michael M. @ 34:
Michael M., if you think that China can keep producing if the US stops buying, I've got a bridge to sell you.
The thinking in some of the financial blogs is that China has topped out and is ready to fall, and indeed the FTSE(FXI) looks a lot like the NASDAQ(QQQQ). See http://stockcharts.com/h-sc/ui?s=fxi&p=D&b=3&g=0&id=p06779496355
AConfederacyofDunces @ 7:
It has been around since greenspan. that aynrandian helped promote the current crisis.
Jo @ 57:
No. The easiest way is through Gold Exchange Trade funds:
http://en.wikipedia.org/wiki/StreetTRACKS_Gold_Shares
These are liquid vehicles that you can buy in an out of like a stock. Gold has had a better return than the S&P 500 for decades now. "Return" is a misnomer since gold is not an investment, its a store a value. Hard to look at the stock market the same way once you think about this for a bit.
anonimouse @ 60:
I love you for pointing out more stupid people!
BaScOmBe @ 56:
Think of it this way - all that talk of "We're charging this to our grandkids" won't happen. We're going to pay for 9 tril in the coming years via inflation.
Jo @ 57:
If you in the US, something like this or the person who deals with your shares etc :
http://www.monex.com/prods/gold.html
unfrozencaveman @ 62:
Thanks! I bookmarked the info to study later. Lots to think about and study.
BaScOmBe @ 61:
Yes. The spin has old roots.
...
anonimouse @ 60:
please don't think that we can throttle china in any way. we have given them way too much leverage in the global markets. we are NOT their only customer and they hold $1,500,000,000,000 of our debt IN CASH, which they are dropping on the market to cut their own losses for purchasing our debt in the first place. Because they have a 'production' economy, they also compete with us for the oil that we are trying to steal around the globe. They are a thirsty country with four times our population.
The financial 'shop talk' is by people under the assumption that China doesn't want to cut their losses and that fear is supposed to hold them fast to the dollar. On a banking basis, selling debt is a sound way to 'manage' a commodity or currency of falling value . On a cash-flow basis alone, they can afford to cut their losses. we lose $60,000,000,000/month in trade debt.
They have unstoppable stealth missiles; they can knock down satellites; they have nukes; they have the largest standing conventional army of any country on the planet.
They are pretty much the global competitor our 'american/global' corporations have constructed with good-old american know-how.
Tell me again what the chinese have to fear.
How interesting, we have a recession coming right about the time Bushie wants to have him some war with Iran. Could the force-framing of The New World War on the old World War be more propitious? Bush can let the next war make a virtue out of necessity: