Stock market collapse in October

[Mich the Tester]

Interesting the reason for the current surge.

USA consumer spending jumped a lot in August.

Hence the optimism and big gains in stock markets around the world.

Hooray!

Until you read the small print and see that the consumer spending jump is driven by car sales which is driven by cash for clunkers which is driven by printing money and giving it to people to spend.

So it's a recovery based on fiscal stimulus. When the money runs out, it's crash time.

The last boom was based on monetary stimulus. What difference does it make?

[DimPrawn]

The last boom was based on monetary stimulus. What difference does it make?

You can't maintain a western lifestyle and asset prices forever by printing money. You actually have to make/do something and be competitive with the East.

[AlfredJPruffock]

You can't maintain a western lifestyle and asset prices forever by printing money. You actually have to make/do something and be competitive with the East.

Not quite that simple - if your currency happens to be the currency that Oil is traded in - eg petrodollar - then debt doesnt matter.

Let the East produce the goods - we shall design and consume the goods.

And if you are an Oil Producer - dont even think of changing that currency ... unless you fancy a bit of compulsory Freedom and Democracy ....

[Mich the Tester]

You can't maintain a western lifestyle and asset prices forever by printing money. You actually have to make/do something and be competitive with the East.

We do. We get the east to make stuff, then stamp 'Made in Italy/France/Britain/Holland' on it and add a margin of 500%. The we lend dumb consumers money to buy the stuff, then tell eastern investors they've lost their money. Easy. Problem solved, boom boom boom.

[AlfredJPruffock]

We do. We get the east to make stuff, then stamp 'Made in Italy/France/Britain/Holland' on it and add a margin of 500%. The we lend dumb consumers money to buy the stuff, then tell eastern investors they've lost their money. Easy. Problem solved, boom boom boom.

Yep - for a wee while I thought I was alone in this board in understanding the realpolitck of the Global economy - all we have to do is to enjoy the stuff thats being knocked out - oh and laugh all the way to the bank.

No wonder the Casandras and the Doom-sayers are being proven wrong - they just dont get the big picture.

And they dont have a time machine.

So there.

[MrMark]

Pound down again against the Euro. Contractors in Euroland must be over the moon.

[suityou01]

Interesting the reason for the current surge.

USA consumer spending jumped a lot in August.

Hence the optimism and big gains in stock markets around the world.

Hooray!

Until you read the small print and see that the consumer spending jump is driven by car sales which is driven by cash for clunkers which is driven by printing money and giving it to people to spend.

So it's a recovery based on fiscal stimulus. When the money runs out, it's crash time.

Interesting. I noticed an 82 point jump in the FTSE 100, on the back of news that unemployment has reached a 14 year high. Earlier this year prisonplanet.com (foil hat brigade) did a piece on Bilderberg Group saying that they planned to pump the markets back up again, and then crash them back down again worse than before.

Pondlife reckons he works for a Bilderberg Group attendee, and that this client is preparing for a big crash. All the signs are a big crash is going to happen. This next month is going to be interesting.

[SuperZ]

Interesting. I noticed an 82 point jump in the FTSE 100, on the back of news that unemployment has reached a 14 year high. Earlier this year prisonplanet.com (foil hat brigade) did a piece on Bilderberg Group saying that they planned to pump the markets back up again, and then crash them back down again worse than before.

Pondlife reckons he works for a Bilderberg Group attendee, and that this client is preparing for a big crash. All the signs are a big crash is going to happen. This next month is going to be interesting.

Thing is, they will rise again also. I personally doubt we`ll see prices below the March lows again. They may drop sharply but will rise back to their current levels again also. Stocks have been very cheap. A few are looking a bit high now given the global economy and might therefore correct again. If we do see a crash, I`ll be buying again.

Governments find it very hard to move markets (remember currency propping up attempts of the past), I doubt Bilderberg can influence the markets much.

If the market does tank below the March lows and then the 2003 lows and stay there I don`t think the doomers will be too happy, our futures could be well and truly foooooked, work wise and retirement wise and our properties will follow the downward trend also. House prices can lag the stock market by 18 months and I fear house prices will do worse percentage wise than the stock market .

[BrilloPad]

Thing is, they will rise again also. I personally doubt we`ll see prices below the March lows again. They may drop sharply but will rise back to their current levels again also. Stocks have been very cheap. A few are looking a bit high now given the global economy and might therefore correct again. If we do see a crash, I`ll be buying again.

Governments find it very hard to move markets (remember currency propping up attempts of the past), I doubt Bilderberg can influence the markets much.

If the market does tank below the March lows and then the 2003 lows and stay there I don`t think the doomers will be too happy, our futures could be well and truly foooooked, work wise and retirement wise and our properties will follow the downward trend also. House prices can lag the stock market by 18 months and I fear house prices will do worse percentage wise than the stock market .

It depens if we realiozed how f**ked things are. As a nation and personally we have lived beyond our means. The careful and frugal(like me) have missed out on the gains : but when it goes wrong we are the ones to suffer.

There seems to be no reward for hard work or parsimony.

One day we are going to have to learn to live within our means.

[suityou01]

Thing is, they will rise again also. I personally doubt we`ll see prices below the March lows again. They may drop sharply but will rise back to their current levels again also. Stocks have been very cheap. A few are looking a bit high now given the global economy and might therefore correct again. If we do see a crash, I`ll be buying again.

Governments find it very hard to move markets (remember currency propping up attempts of the past), I doubt Bilderberg can influence the markets much.

If the market does tank below the March lows and then the 2003 lows and stay there I don`t think the doomers will be too happy, our futures could be well and truly foooooked, work wise and retirement wise and our properties will follow the downward trend also. House prices can lag the stock market by 18 months and I fear house prices will do worse percentage wise than the stock market .

I have read that the financial system as we know it will collapse, and that it will be a grass roots rebuild based on worth, involving debt being wiped out and a new Global Credit system put in place.

Still I have a big bag of chocolate coated peanuts, a cup of tea and the missus snuggled up next to me.