dow 24000

[UnconTROLLed]

oftwominds-Charles Hugh Smith: The Global Repricing of Assets Can't Be Stopped

This is why the repricing of speculative-bubble assets can't be stopped: debt-driven speculation is not a sustainable substitute for investing in increasing productivity, and debt-fueled consumption masquerading as "investment" is not a sustainable substitute for limiting consumption to what we earn and save.
All bubbles pop, period. Once Corporate America's credit lines are pulled and its revenues and profits plummet, the financial manipulation of stock buybacks will end. That spells the end of the 12-year bull market in stocks.
As the tide of speculative mania ebbs and confidence wanes, the world's housing bubbles will all pop, and the $1.4 million bungalows will drift back down to their Bubble #1 highs around $400,000, and perhaps even drop from there.
As for collectibles and other play-things of the super-wealthy: the bids will soon vanish and yachts will be set adrift to avoid paying the dock fees.







This is why it's imperative to go big now, and make plans to sustain the most vulnerable households and small employers not for two weeks but for six months--or however long proves necessary.
That governments around the world will be forced to distribute "helicopter money" to keep their people fed and housed and their economies from imploding is already a given. Closing all non-essential businesses and gatherings will crimp the livelihood of millions of households and small businesses that lack the financial resources to survive weeks without any revenues.
The only question is whether governments which can borrow or print fresh currency will get ahead of the implosion or fall behind, creating a binary choice: go big now or go home.
Half-measures in helicopter money work about as well as half-measures in quarantine, i.e. they fail to achieve the intended objectives. Dribbling out modest low-interest loans is a half-measure, as is cutting payroll taxes. Neither measure will help employees or small businesses whose income has fallen below the minimum needed to pay essential bills: rent, food, utilities, etc.
Meanwhile, the ruling elites will be under increasing pressure to bail out greedy financial elites and gamblers--the same scoundrels and parasites they bailed out in 2008-09. But this is not just another speculative bubble-pop, this is a matter of life and death and solvency for the masses of at-risk households and small businesses. It is a different zeitgeist and a different crisis, and bailing out greedy parasites (banks, indebted corporations, speculators, financiers, etc.) will not go over big while households and small businesses are going bankrupt.
....

 

[MAKAVELI]

Who new a virus could be so complicated? Lol

 

[Re-Raise]

I remember when this day felt like a big loss


edit..for all those who feel that a loss only occurs when you sell or the price of an individual stock hits $0 ... feel free to substitute the word “drop” for “loss”

 

[newfie]

Who new a virus could be so complicated? Lol

the 500 that have died are trying to laugh with you but are a little encumbered physically.

 

[IVE GOTTA PACKAGE 4U]

View attachment 287743

I remember when this day felt like a big loss


edit..for all those who feel that a loss only occurs when you sell or the price of an individual stock hits $0 ... feel free to substitute the word “drop” for “loss”

It's also negative on your attitude.

 

[Re-Raise]

It's also negative on your attitude.

A lot of discretionary spending depends on consumer confidence in my opinion.

Whether people start buying new vehicles or taking expensive vacations again may be affected for many years because of this “drop” in wealth

All of the layoffs will even have a larger impact

 

[IVE GOTTA PACKAGE 4U]

A lot of discretionary spending depends on consumer confidence in my opinion.

Whether people start buying new vehicles or taking expensive vacations again may be affected for many years because of this “drop” in wealth

All of the layoffs will even have a larger impact

And some jobs that might never come back

 

[bottomups]

I believe the markets will go back up when they feel they have turned the corner on the virus, and businesses recover from the recession this is probably going to cause.

But we are not there yet and it could get worse before it gets better. I am not selling, but there s no way I am putting any more cash into equities for a while!

Agreed. I have between $300,000 and $400,000 liquid cash I'm ready to dump into the market but I'm waiting for things to calm down a bit beforehand. If I miss the bottom I hope to at least do better than what the bank is paying me in interest.

 

[IVE GOTTA PACKAGE 4U]

Agreed. I have between $300,000 and $400,000 liquid cash I'm ready to dump into the market but I'm waiting for things to calm down a bit beforehand. If I miss the bottom I hope to at least do better than what the bank is paying me in interest.

Bank interest is going to be low for a long time.

 

[MAKAVELI]

the 500 that have died are trying to laugh with you but are a little encumbered physically.

They also agree with Drumpf that it's under control.

 

[olroadbeech]

Agreed. I have between $300,000 and $400,000 liquid cash I'm ready to dump into the market but I'm waiting for things to calm down a bit beforehand. If I miss the bottom I hope to at least do better than what the bank is paying me in interest.

I don't see how you can go wrong but knowing the bottom will be the question. we have been buying even though it is going down but know it will come back in the long term. we also think it's important to keep a bunch of cash just in case.

 

[Re-Raise]

I don't see how you can go wrong but knowing the bottom will be the question. we have been buying even though it is going down but know it will come back in the long term. we also think it's important to keep a bunch of cash just in case.

How is your 2 million in the market faring?

 

[olroadbeech]

nobody knows where the bottom is and you can not look at past bear markets to understand. this crisis is a whole different animal. one indicator may be when CV19 cases peak and start on the downslope.

confidence will recover which has a lot to do with emotional trading on wall street

 

[Box Ox]

nobody knows where the bottom is and you can not look at past bear markets to understand. this crisis is a whole different animal. one indicator may be when CV19 cases peak and start on the downslope.

I'm buying every day. $10k in the last week and will continue .

Smart

 

[Re-Raise]

Smart

I need a sarcasm detector

 

[Box Ox]

I need a sarcasm detector

BEEP BEEP BEEEEEEEEEEEEEEP

 

[El Correcto]

Agreed. I have between $300,000 and $400,000 liquid cash I'm ready to dump into the market but I'm waiting for things to calm down a bit beforehand. If I miss the bottom I hope to at least do better than what the bank is paying me in interest.

that go buy a Lambo

 

[El Correcto]

You never see someone not smiling in a lambo

 

[Re-Raise]

Old Road

If you REALLY have 2 mill already in the markets.. why would it even be worth mentioning a tiny 10k purchase ...even if it did happen?

Your losses “on paper” would be about $700 k if your equities were spread across different segments of the market!

Why even mention a 10k purchase?

Isn’t your husband disabled? You should probably just try to stay healthy

 

[Re-Raise]

that go buy a Lambo

My wife has a new BMW .. the depreciation on it looks better than our stock portfolio right now