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Why Are Stock Markets So Volatile?
Topic Started: 18 Oct 2014, 08:45 PM (1,408 Views)
peter fraser
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Why Are Stock Markets So Volatile?


A serious depression is pending as a result of austerity, says Professor Michael Hudson, author of The Bubble and Beyond, and Finance Capitalism and Its Discontents - October 17, 2014





Any expressed market opinion is my own and is not to be taken as financial advice
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GloomBoomDoom
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MSE
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Blondie girl
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SO, stand back & evaluate the situation, & just get on with it with no fuss.

I was told to shut it up ..& I did , I had to learn what it all means ..still learning.

Listen to the realism.

Not the reckless or inexperienced.

Patience & discipline goes a long way... & to eat humble pie...admit when wrong it promotes the respect it deserves in the end.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$
It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged
Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do.
Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
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peter fraser
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The New Philosophers
LINK

PRINCETON – At the recent meeting of G-20 finance ministers in Australia, US Treasury Secretary Jack Lew noted “philosophical differences with some of our friends in Europe,” before urging Europeans to do more to boost their anemic growth rate. The terminology is striking, and underscores the difficulty of Europe’s search for a way out of its current malaise.

Canada’s finance minister, Joe Oliver, joined the call for fiscal expansion in Europe – a position for which there seems to be some support within the European Central Bank. Indeed, ECB President Mario Draghi has advocated higher spending by more fiscally strong countries like Germany. And ECB Executive Board member Benoit Coeure, together with his former colleague Jörg Asmussen, currently Germany’s deputy labor minister, recently suggested that Germany should “use its available room for maneuver to promote investments and reduce the tax burden of workers.”

In fact, most of the world believes that Germany should adopt a more expansive fiscal policy. According to this view, austerity is counter-productive, because it induces slowdowns and recessions that make long-term fiscal consolidation more difficult.

But Germans – as well as some other Northern Europeans, and perhaps some Chinese economists – remain reticent. They believe that responding to calls for stimulus would simply lead to more such calls, creating a log-rolling, pork-barrel dynamic in which any hope for fiscal consolidation is ruled out.

The stimulus-versus-austerity debate is an old one. In the 1970s and 1980s, the United States regularly called on Germany and Japan to act as locomotives for the global economy. But, until recently, the divergences were viewed in terms of interests, not “philosophies.” Americans wanted additional demand for their goods and higher prices, while the Germans and Japanese defended their export industries.

READ MORE HERE.
Any expressed market opinion is my own and is not to be taken as financial advice
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John Frum
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peter fraser
19 Oct 2014, 08:02 AM
The New Philosophers
LINK

PRINCETON – At the recent meeting of G-20 finance ministers in Australia, US Treasury Secretary Jack Lew noted “philosophical differences with some of our friends in Europe,” before urging Europeans to do more to boost their anemic growth rate. The terminology is striking, and underscores the difficulty of Europe’s search for a way out of its current malaise.

Canada’s finance minister, Joe Oliver, joined the call for fiscal expansion in Europe – a position for which there seems to be some support within the European Central Bank. Indeed, ECB President Mario Draghi has advocated higher spending by more fiscally strong countries like Germany. And ECB Executive Board member Benoit Coeure, together with his former colleague Jörg Asmussen, currently Germany’s deputy labor minister, recently suggested that Germany should “use its available room for maneuver to promote investments and reduce the tax burden of workers.”

In fact, most of the world believes that Germany should adopt a more expansive fiscal policy. According to this view, austerity is counter-productive, because it induces slowdowns and recessions that make long-term fiscal consolidation more difficult.

But Germans – as well as some other Northern Europeans, and perhaps some Chinese economists – remain reticent. They believe that responding to calls for stimulus would simply lead to more such calls, creating a log-rolling, pork-barrel dynamic in which any hope for fiscal consolidation is ruled out.

The stimulus-versus-austerity debate is an old one. In the 1970s and 1980s, the United States regularly called on Germany and Japan to act as locomotives for the global economy. But, until recently, the divergences were viewed in terms of interests, not “philosophies.” Americans wanted additional demand for their goods and higher prices, while the Germans and Japanese defended their export industries.

READ MORE HERE.

It's funny, because the longer you see this game playing out, the more you feel like people are missing the point.

It's not monetary stimulus that's required - loose monetary policy appears to be doing little to get us out of this 6 year funk.

What's missing is direction and purpose. Nobody currently knows what to do with all the extra money, and that, combined with continuing fear and uncertainty, means it just goes into bidding up prices of existing, safer assets. The great animal spirits of the trickle-down appear to be building a tolerance to their medication.

In a way I see China at an advantage here (if it wasn't for their huge housing market problem) - having a centrally planned economy means you have more control over where your capital can go - this is esentially what the macro prudential controls of the West are, but without as many legal or political hurdles to overcome so you can respond quickly.

The other issue is that normally in listless times like this it's war that galvanises the spirit and - perversely - helps to build a stronger, more robust economy, despite the carnage and pain that it inflicts on millions of lives.

Sometimes you have to wonder if getting behind the AGW movement could be a positive thing - a chance for us to get the same sense of communal purpose and direction that fosters economic growth and prosperity, but without the bloodshed. And this despite the fact that I'm still extremely sceptical of the argumemt that the science on climate change is closed and indisputable.

Edited by John Frum, 19 Oct 2014, 08:57 AM.
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness.
"Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
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miw
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John Frum
19 Oct 2014, 08:55 AM
In a way I see China at an advantage here (if it wasn't for their huge housing market problem) - having a centrally planned economy means you have more control over where your capital can go - this is esentially what the macro prudential controls of the West are, but without as many legal or political hurdles to overcome so you can respond quickly.
China has another big advantage over Europe in that it still has a lot of potential infrastructure projects that will nett a decent return for the economy over time, should it decide to stimulate. Germany can essentially just do maintenance. It has enough roads, railways and dwellings already.
The truth will set you free. But first, it will piss you off.
--Gloria Steinem
AREPS™
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Count du Monet
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miw
19 Oct 2014, 01:31 PM
China has another big advantage over Europe in that it still has a lot of potential infrastructure projects that will nett a decent return for the economy over time, should it decide to stimulate. Germany can essentially just do maintenance. It has enough roads, railways and dwellings already.
Actually 'economy' is a subject, not an object. You could refer to the 'market', since the market is an object.
The next trick of our glorious banks will be to charge us a fee for using net bank!!!
You are no longer customer, you are property!!!

Don't be SAUCY with me Bernaisse
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One day you might actually understand the bigger picture Peter, I've only been trying to explain it to you for years.

Honestly ,is it so hard to undestand by now ?

How much longer can you play the jackass, the debt spriuking one at that. The very thing that caused this mess.

Mindless overborrowing,encouraged by idiots until it became completely unsustainable on any level.

So Peter ,are you starting to see the bigger picture yet, or is this just all part of the cycle ?

And he did not even touch on cheap asain labour, which has only increased the speed and level of decline in unemployment throughout the western world.

Wont be much longer now until the rest of those bulls dissapear permantly. Just like timmy did once reality hit home.
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miw
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Count du Monet
19 Oct 2014, 06:02 PM
Actually 'economy' is a subject, not an object. You could refer to the 'market', since the market is an object.
Count you are an artist. That's one of the finest examples of pure trollery I have seen in a long while.
The truth will set you free. But first, it will piss you off.
--Gloria Steinem
AREPS™
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herbie
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I'm just a bear cub compared to the likes of some. This dude is calling DJIA back down to 5,000 over 'the next several years" apparently.

And saying things like "we are likely facing not just a minor correction but one that will, over the next several years, make the decline and depression of the 1930s look like child’s play" :

http://www.kitco.com/ind/Taylor/2014-10-21-Are-Our-Markets-Now-Beyond-Manipulation.html
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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