|
Replies: 39
| visibility 1
|
All-In [48078]
TigerPulse: 100%
Posts: 49059
Joined: 5/16/04
|
Biggest point drop ever in the DJIA.
Feb 5, 2018, 4:11 PM
|
|
Why?
|
|
|
|
 |
All-TigerNet [13605]
TigerPulse: 100%
Posts: 12897
Joined: 8/10/13
|
Re: Biggest point drop ever in the DJIA.
Feb 5, 2018, 4:15 PM
|
|
Inflation fears and a market correction imho
|
|
|
|
|
|
All-TigerNet [13605]
TigerPulse: 100%
Posts: 12897
Joined: 8/10/13
|
Re: Biggest point drop ever in the DJIA.
Feb 5, 2018, 4:15 PM
|
|
Inflation fears and a market correction imho
|
|
|
|
|
|
Oculus Spirit [78876]
TigerPulse: 100%
Posts: 78623
Joined: 8/2/03
|
Re: Biggest point drop ever in the DJIA.
Feb 5, 2018, 4:20 PM
|
|
Inflation fears and a market correction imho
|
|
|
|
|
|
All-In [30190]
TigerPulse: 100%
Posts: 31797
Joined: 9/13/01
|
Re: Biggest point drop ever in the DJIA.
Feb 5, 2018, 4:21 PM
|
|
Inflation correction and market fears imho
Also, ana l bleeding
|
|
|
|
|
|
Oculus Spirit [83119]
TigerPulse: 100%
Posts: 80156
Joined: 11/29/99
|
Because Trump sux***
Feb 5, 2018, 4:23 PM
|
|
|
|
|
|
|
|
Legend [17289]
TigerPulse: 100%
Posts: 14236
Joined: 12/14/98
|
No because the Eagles won the Super Bowl.***
Feb 5, 2018, 4:48 PM
|
|
|
|
|
|
|
|
CU Guru [1405]
TigerPulse: 54%
Posts: 3412
Joined: 1/10/13
|
Re: Biggest point drop ever in the DJIA.
Feb 5, 2018, 4:27 PM
|
|
To be fair, as the market goes higher, point swings are bigger. Percentage is what matters. It was still a brutal day, though.
But this is why it's dangerous for a President to claim responsibility for the market on the way up. It'll eventually come down.
|
|
|
|
|
|
110%er [5640]
TigerPulse: 98%
Posts: 3324
Joined: 9/12/16
|
Re: Biggest point drop ever in the DJIA.
Feb 5, 2018, 4:39 PM
|
|
The current market lies directly at the feet of Janet Yellen outgoing Fed chief. As her parting shot from the deep state she raised interest rates and said the stock market was over valued. President Trump's policies have done more for the economy than any president in the last 12 years. It's a sad state of affairs that the deep state would burn this country to the ground rather than President Trump any degree of success!!
|
|
|
|
|
|
Legend [16255]
TigerPulse: 100%
Posts: 12783
Joined: 11/14/09
|
Welcome back, troll. Another session of divide and conquer
Feb 5, 2018, 4:41 PM
|
|
posting?
|
|
|
|
|
|
110%er [5640]
TigerPulse: 98%
Posts: 3324
Joined: 9/12/16
|
Re: Welcome back, troll. Another session of divide and conquer
Feb 5, 2018, 4:55 PM
|
|
Just putting you on notice, enough is enough. If you do not like my point of view move to another board. If you want war then so be it. and as for as the troll bit I suggest that you look in the mirror to see the real troll on this site.
|
|
|
|
|
|
Legend [16255]
TigerPulse: 100%
Posts: 12783
Joined: 11/14/09
|
Nice try, Jakov.
Feb 5, 2018, 5:10 PM
|
|
Would love to write you off as just a run of the mill dope as others have suggested but I suspect there's something up with you and feel it's your place to prove that you are not a foreign interloper. Nobody looking for war except you and your comrades.
|
|
|
|
|
|
110%er [5640]
TigerPulse: 98%
Posts: 3324
Joined: 9/12/16
|
Re: Nice try, Jakov.
Feb 5, 2018, 7:38 PM
|
|
If all were like you we would never have gained our freedom from the British. I suspect that you would have sided with the British.
|
|
|
|
|
|
All-In [42161]
TigerPulse: 100%
Posts: 38247
Joined: 11/30/98
|
Hey, do you remember which side in that war...
Feb 5, 2018, 8:51 PM
|
|
Wanted to try people for treason when they didn't support the king?
|
|
|
|
|
|
Legend [16255]
TigerPulse: 100%
Posts: 12783
Joined: 11/14/09
|
You're a phony. A prop. Earning denars at your trade here.
Feb 5, 2018, 10:57 PM
[ in reply to Re: Nice try, Jakov. ] |
|
A tool. It's not the biggest audience certainly but the Majors have cracked down on the anti-democratic / foreign bought ploys of late. It was shown to be effective in splintering us enough, so now the work trickles down into smaller venues, still stirring it up.
|
|
|
|
|
|
All-In [42161]
TigerPulse: 100%
Posts: 38247
Joined: 11/30/98
|
|
|
|
|
|
All-In [31894]
TigerPulse: 100%
Posts: 37182
Joined: 11/22/03
|
I guessing there is a lot of typing in CAPS and what not***
Feb 5, 2018, 9:13 PM
|
|
|
|
|
|
|
|
Legend [15492]
TigerPulse: 100%
Posts: 18413
Joined: 12/10/14
|
Re: Biggest point drop ever in the DJIA.
Feb 5, 2018, 4:44 PM
[ in reply to Re: Biggest point drop ever in the DJIA. ] |
|
Your guy disagrees with you:
“We are in a big, fat, ugly bubble.” - Donald Trump on the Stock Market, Sept.26, 2016 1st Presidential Debate.
|
|
|
|
|
|
Oculus Spirit [83119]
TigerPulse: 100%
Posts: 80156
Joined: 11/29/99
|
LOL. Trump should get the credit
Feb 5, 2018, 4:47 PM
[ in reply to Re: Biggest point drop ever in the DJIA. ] |
|
for our market success in 2017 but to blame Yellen for the drop is moronic. Everyone knew rates were going to rise and that they should. Also anyone with a clue knows most stocks are over - valued right now.
The market was in a euphoric state a few weeks ago. That should have signaled to you that a dip was coming.
|
|
|
|
|
|
Legend [18023]
TigerPulse: 100%
Posts: 30155
Joined: 9/9/06
|
|
|
|
|
|
All-In [31894]
TigerPulse: 100%
Posts: 37182
Joined: 11/22/03
|
|
|
|
|
|
Legend [18023]
TigerPulse: 100%
Posts: 30155
Joined: 9/9/06
|
Heard on NPR that it may have to do with program trading***
Feb 5, 2018, 4:29 PM
|
|
|
|
|
|
|
|
Legend [15492]
TigerPulse: 100%
Posts: 18413
Joined: 12/10/14
|
Pretty dramatic
Feb 5, 2018, 4:35 PM
|
|
It has dropped 1,974 points since last wednesday.
What goes up, must come down. I suppose a lot of investors are taking profits. It happens all the time.
|
|
|
|
|
|
Legend [16255]
TigerPulse: 100%
Posts: 12783
Joined: 11/14/09
|
Market explosion of past year in anticipation of higher
Feb 5, 2018, 4:36 PM
|
|
dividends and stock buybacks associated with pending corporate tax cut (i.e. the market has already absorbed that surplus past 12 months) meets reality of pending interest rate nudge and inflation (goodbye higher wage value). Plus we're a rudderless ship as a nation.
|
|
|
|
|
|
CU Medallion [73569]
TigerPulse: 100%
Posts: 78044
Joined: 11/30/98
|
Indictments imminent***
Feb 5, 2018, 4:37 PM
|
|
|
|
|
|
|
|
Legend [15492]
TigerPulse: 100%
Posts: 18413
Joined: 12/10/14
|
Re: Indictments imminent***
Feb 5, 2018, 4:40 PM
|
|
Actually that was pretty funny xtiger.
I spit tea on my keyboard. +1
|
|
|
|
|
|
Legend [17289]
TigerPulse: 100%
Posts: 14236
Joined: 12/14/98
|
|
|
|
|
|
Legend [17915]
TigerPulse: 100%
Posts: 8939
Joined: 12/24/96
|
Re: Biggest point drop ever in the DJIA.
Feb 5, 2018, 5:30 PM
|
|
Obama. Since he made it go up, which I recently heard reported in the last few weeks, then it must be his fault it went down.
Trump got his hands full after all that Obama messed up. For sure!
|
|
|
|
|
|
All-TigerNet [13605]
TigerPulse: 100%
Posts: 12897
Joined: 8/10/13
|
Re: Biggest point drop ever in the DJIA.
Feb 5, 2018, 5:31 PM
|
|
LOL
|
|
|
|
|
|
All-In [31894]
TigerPulse: 100%
Posts: 37182
Joined: 11/22/03
|
Because it's really high historically and people...
Feb 5, 2018, 6:02 PM
|
|
don't measure drops in points, they measure in percentage (or at least they should).
|
|
|
|
|
|
Oculus Spirit [97719]
TigerPulse: 100%
Posts: 64859
Joined: 7/13/02
|
I called this a while back. It's a real danger that no one
Feb 5, 2018, 6:18 PM
|
|
expects or knows much about because we haven't dealt with it in a long time. Inflation.
I've warned for years now about what will happen if our economy ever really gets cranking again. We have developed over the past two decades or more a stagnant economy, modest job growth, flat wages, and cheap debt with low interest rates. So what happens when the economy takes off if someone lets the brakes off it? Well, Trump had done that, and there's a real danger in letting the brakes off our economy too fast.
Inflation can cause a crisis that we can't even comprehend. You know that $20 trillion national debt. Probably $21 trillion by now. Well, servicing that debt is relatively easy for our government when there is no real inflation and 1.5% interest rates. But if inflation and consequently interest rates go back up to early 1980's levels, our national debt will not be serviceable. Yes, a roaring economy can easily cause the United States government to default on its debt payments. But what will actually happen is the cost of not cutting spending increases exponentially. If interest rates go up to 15%, the roughly 8% of our budget we now pay to service our national debt will go up to levels far bigger than Social Security, Medicare/Medicaid, and all non-discretionary spending combined. So we pay to service out debt by paying the interest on it, and the remaining spending doesn't change and just gets tacked on, adding even more to the debt causing the debt to rise exponentially more than it would otherwise rise.
I warned to be careful if our economy ever really gets roaring. Everything our government has done over the past two decades has been geared to bringing inflation to VERY low levels. Too low really. Illegal immigration? Yes, even that is a bulwark against inflation. Why has the minimum wage not risen? Because it can't. Why has manufacturing gone overseas? To cut the cost of goods, which we all import. Quantitative easing was simply erasing debt from the books. Why doesn't the government just issue every taxpayer a check for a few grand instead of TARP? Because they can't.
In 2007 we had a debt crisis caused by low inflation and cheap lending rates. What happens to all those 4% 30-year fixed mortgages when/if interest rates climb to 15%? It ain't good, I promise.
No, the next crisis will be a crisis of the dollar, and it's value. Inflation. Bonds will crash. Stocks will crash. Jobs will grow. Incomes will grow. But the price of goods will also grow. It's a zero sum game in the end. It always is.
|
|
|
|
|
|
All-In [31894]
TigerPulse: 100%
Posts: 37182
Joined: 11/22/03
|
I just don't see it....
Feb 5, 2018, 9:12 PM
|
|
2017 annualized core inflation rate was 1.8%, which is below the fed target. I think the fed funds rate increase was possibly a bit over-conservative, but i don't see the impending inflation doom you're predicting (are you predicting it...it's not really clear).
I think low inflation has actually been holding us back economically. We need something in the range of 2.5% - 3% for a while to get wages bumped up a bit and get some decent expansion cooking. It's not all a zero-sum game like you said. There are way too many variables. And it sure doesn't have to be a run-away train as you describe it.
I agree on the debt level and the cost of servicing it. Although no one really seems to be serious about balancing the budget, much less running the surpluses that would be needed to reduce our debt level.
I think the only hope is to get some rapidly rising revenues and by some miracle showing spending restraint in the face of increasing revenues.
|
|
|
|
|
|
Oculus Spirit [97719]
TigerPulse: 100%
Posts: 64859
Joined: 7/13/02
|
I'm not talking about hyper-inflation like Venezuela
Feb 6, 2018, 10:16 AM
|
|
or Weimar Germany. We have built such a debt problem in government and among average people (homeowners, etc.) that even 10-15% inflation will cripple us. I'm talking about "relatively" low rates of inflation, like 10-12% like we saw in the early 1980's. 1982 inflation would sink our government today given all the debt the government has leveraged. But in 1982 we didn't have near the national debt we have now, so even with those rates we could service it. What was manageable in 1982 will cause collapse today.
And this is why the fed is in a pickle right now. If they were smart, they would raise rates to 5% by the end of this year. Probably will need more than that. But the fed will never do that because our economy can easily outperform the level of rates needed to keep inflation low. We have been many years painting ourselves into this corner with inflation, and the economic mindset to manage growth is not there. It's a whole different tact the fed will need to take, and it's a direction we have not traveled in 2 decades or more.
If our economy takes off with what it has the potential to do, there is no rate the fed can set to stop the inflation getting to the levels that would cripple servicing our national debt. I have a 30-year fixed rate on my mortgage. The national debt does not enjoy a fixed rate. Raise the interest rates enough to control inflation, and you cripple the government. Sad fact, but that's the unspoken conventional wisdom in Washington. A roaring economy will cripple our government and actually cause a crash that can't be swept under the rug like the 2007 debt crisis was. We all want a better economy, except those in government who know that would expose the problems they've caused with leveraging our tax dollars to pay debt they incurred buying our votes.
Ironic, but a roaring economy will sink us.
|
|
|
|
|
|
All-In [31894]
TigerPulse: 100%
Posts: 37182
Joined: 11/22/03
|
Where are you seeing inflationary figures or pressure....
Feb 6, 2018, 10:23 AM
|
|
that would call for such a move?
|
|
|
|
|
|
Oculus Spirit [97719]
TigerPulse: 100%
Posts: 64859
Joined: 7/13/02
|
|
|
|
|
|
All-In [31894]
TigerPulse: 100%
Posts: 37182
Joined: 11/22/03
|
Those articles seem to be purely speculative to me...
Feb 6, 2018, 10:55 AM
|
|
when the January inflation numbers were announced, the markets jumped a bit. Because the MOM core inflation of 0.3% was seen as being largely unexpected good news.
I could be wrong, but I don't think the correction we saw over the last 2 days is based on inflation concerns.
|
|
|
|
|
|
110%er [5640]
TigerPulse: 98%
Posts: 3324
Joined: 9/12/16
|
|
|
|
|
|
All-In [31894]
TigerPulse: 100%
Posts: 37182
Joined: 11/22/03
|
That's great and all, but what does that have to do with...
Feb 5, 2018, 9:26 PM
|
|
the price of rice in China?
|
|
|
|
|
|
Legend [19945]
TigerPulse: 100%
Posts: 11204
Joined: 9/23/07
|
|
|
|
|
|
Legend [19945]
TigerPulse: 100%
Posts: 11204
Joined: 9/23/07
|
We are blaming Trump, right?
Feb 6, 2018, 8:03 PM
|
|
It would be awfully hypocritical to give him all the credit when the market goes up, but not the blame when it goes down.
|
|
|
|
|
|
Replies: 39
| visibility 1
|
|
|
50
