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Is today doomsday?; Global markets crashing
Topic Started: 22 Aug 2015, 05:19 AM (94,958 Views)
Jimbo
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A lot of the big indexes are down today. Down for the week, down for the month, down for the year.

Mum and Dad investors will no doubt be ringing their brokers on Monday to cash out (because they didn't last time).

The recovery meme has gone the way of planking and Ice Bucket challenges.

Is today doomsday?

Are you prepared? Is your money in your hands? Is it real money?

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Edited by Jimbo, 22 Aug 2015, 06:27 AM.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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Mallard
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Thread killer

Just jitters because the fed will raise rates in September
Collecting desperation.
Ex-Bp Golly April 2 2015. "I see with a slight overshoot -70% [fall in Sydney house prices] as being well within possibility"
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Jimbo
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Mallard
22 Aug 2015, 06:32 AM
Just jitters because the fed will raise rates in September
Of course they will....Won't they?
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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newjez
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Personally I think it's time to start buying and lock away in a draw for a year or two.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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Jimbo
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newjez
22 Aug 2015, 06:57 AM
Personally I think it's time to start buying and lock away in a draw for a year or two.
I flogged all of my shares back in January (apart from those that I have a personal interest in).

What freaked me out was the good news is bad news shit that was going on last year (taper tantrum).

Markets were being propped up with the prospect of more easy money. Threaten to take it away, stocks down. Bad economic news (more easing) and stocks are up.

So basically, if you owned stocks, you couldn't lose. But some of us know that it doesn't work like that in real life.

It wasn't about the real value of the Tulips anymore. It was about keeping up the illusion that Tulips would always be worth far more in a years time.

But now central banks and troikas have been exposed for what they are. Impotent in the face of market forces.

Market forces always win and we are witnessing that right now.

Tulips are worth 50 cents each. If you bought a Tulip for $500, more fool you.

Posted Image






Edited by Jimbo, 22 Aug 2015, 07:46 AM.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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Ex BP Golly
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Mallard
22 Aug 2015, 06:32 AM
Just jitters because the fed will raise rates in September
The welfare parasite in you shines brightly little worm.
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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Count du Monet
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Ultimately it depends on the "bond market". Basically surplus goods and services that are the stuff of real loans. Money is simply a synthetic good that is highly liquid in transactions. Originally in the Germanic society that overran the Western Roman Empire, the main form of payment was in cows. These ancient cows were typically skinny animals weighing 180 kg. A "fatted" cow was often worth 3x a skinny cow. But when payment was made the debtor of course would attempt it with the worst of his herd.
As you can understand there were problems with liquidity. The Frankish kingdom adopted silver currency and was beginning of Germanic civilization. A "cow" was valued at 18 grams of fine silver. The Anglo-Saxon kingdoms copied this and shilling worth of silver was 12 silver pennies at a tad under 1.5 grams.
We people people don't spend money, then it is surplus to their needs and available for lending. The borrower consuming instead of his creditors.

What can attract people to saving instead of consuming in the return on invested money. Today the return is poor, and as far as CD's go actually a real negative. Because under the Basel system currency is devalued at something like 6% pa, while currently an Aus netbank will only offer 3% pa at best.

In the late 80's compulsory retirement funds were started to shore up the bond market. This worked magnificently in the 90's, but now the worm has turned. Retirees are going to be consuming their savings in ever greater amounts. So the bond market is going to have trouble finding the money to cash up people for property auctions and share market purchases.

Gold is now a huge risk, because over the long term gold kept under the bed will outpace the negative returns on bonds and CD's. Now you might say property and shares can do a better return over the long term. But Gold like fiat money is highly liquid. And liquidity is all important when the chips are down.

Property might take 6 months to realize its fuller value. Shares down and your broker doesn't return your calls.

Beware! Government can inflate, and they can deflate. But the happy medium of Goldilocks is dead and buried.
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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Bardon
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Mallard
22 Aug 2015, 06:32 AM
Just jitters because the fed will raise rates in September
And if they do then so shall our Guvnor 18 months later.

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The Whole Truth
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How many years have they been "just about to raise rates" only to do an about face?
The bonds are the issue, the debt cannot be repayed but the interest on it must be or a default occurs.
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
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herbie
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Today's always Doomsday - According to some.

And just on the off chance it mightn't obviously seem that way Today to some others, they'll all come to realise it Tomorrow - According to some.

And Yesterday was Doomsday too - According to the same some.

Though lots of others didn't recognise it - According to those some.

But all those others will realise it Today (or Tomorrow at the latest) - According to some ... :)


A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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