Well, there's that 400 back.

 

There's something perversely exciting about this level of volatility.

Well, there's that 400 back.

 

There's something perversely exciting about this level of volatility.

 

On third thought, we really don't like what the Fed had to say afterall.

I thought this was about French banks.

I thought this was about French banks.

 

I was joking, but I hadn't seen that yet. Yikes. They are supposed to be one of the safe spots too.

French banks have 350 billion dollars exposure to Italian bonds, I guess. And French banks are taking a hit this week.

French banks have 350 billion dollars exposure to Italian bonds, I guess. And French banks are taking a hit this week.

The entire structure of the actions on the PIGS countries from the European Central Bank has been geared towards protecting the French and German banks at the expense of the rim countries. Actually having the ECB buy up the bonds of those countries is the first move they've made that doesn't protect those banks on the backs of the citizenry.

French banks have 350 billion dollars exposure to Italian bonds, I guess. And French banks are taking a hit this week.

 

Yeah, they are all down double digit percentages this week. Ugly.

Rallying back now... Back to 11k and running.

And right back to the session lows at the close...

Finished down 520 today.

Im thinking that you will see the DJIA dance around 10-11k for the next few days at least because it looks like every time there is good value people are buying, but then people are getting out as it creeps up because no one wants to buy the high.

 

Itll be interesting to see what happens tomorrow, but based on the graphs youd imagine that there would be a rally, then a sell off and maybe end with a rally.

Market is up 2.5% and the VIX is still over 40. Fun.

So should be looking at some selling in the coming hours. (That is if traders love their graphs, candle sticks and all that as much as they used to)

Edited August 11, 201114 yr by Soxbadger

So should be looking at some selling in the coming hours. (That is if traders love their graphs, candle sticks and all that as much as they used to)

 

Hope you didn't put any money on that

Of course not, none of this makes any sense. Which is why Im much more favorable towards buying than selling. I just dont think that S&P's downgrade was more of a political statement than a true economic statement. You just cant convince me that the US (who to the best of knowledge has never defaulted on any debt payment) is all of a sudden a bigger credit risk.

 

Especially when you consider other nations that stayed as AAA (and considering Buffett said that US should be AAAA http://www.novinite.com/view_news.php?id=130921)

Edited August 11, 201114 yr by Soxbadger

Of course not, none of this makes any sense. Which is why Im much more favorable towards buying than selling. I just dont think that S&P's downgrade was more of a political statement than a true economic statement. You just cant convince me that the US (who to the best of knowledge has never defaulted on any debt payment) is all of a sudden a bigger credit risk.

 

Especially when you consider other nations that stayed as AAA (and considering Buffett said that US should be AAAA http://www.novinite.com/view_news.php?id=130921)

The problem is, this clearly isn't a reaction to anything done by S&P, it's much more of an acknowledgement that the general economy sucks pretty much everywhere, there's increasing risk of things getting worse (Europe), and neither the fed nor Congress are willing to take steps to help.

Of course not, none of this makes any sense. Which is why Im much more favorable towards buying than selling. I just dont think that S&P's downgrade was more of a political statement than a true economic statement. You just cant convince me that the US (who to the best of knowledge has never defaulted on any debt payment) is all of a sudden a bigger credit risk.

 

Especially when you consider other nations that stayed as AAA (and considering Buffett said that US should be AAAA http://www.novinite.com/view_news.php?id=130921)

 

I wonder if Buffets statement's after a big event have been put to the test somewhere because it seems like at the beginning of any bad spell they get him on TV saying how he is bullish on everything, and then the market falls apart. I remember it distinctly in Sept 08.

I wonder if Buffets statement's after a big event have been put to the test somewhere because it seems like at the beginning of any bad spell they get him on TV saying how he is bullish on everything, and then the market falls apart. I remember it distinctly in Sept 08.

This doesn't count?

Unless the US has a bunch of European money (not to my knowledge) a European fiasco would (imo) result in foreign entities putting money in the US markets because they would presumably be far safer.

 

As for the general economy, thats just razzmatazz (and damn thats actually a real word). As long as the US has a general population growth, does not have scarcity of land/materials, the economy is going to grow. There may be down times, there may be recessions, but there would have to be a significant change in the dynamics of the world for the US to just drop off the face of the earth.

 

 

does not have scarcity of land/materials

 

We've been at an oil production plateau for basically 7 years.

At one time rubber, coal, etc were the most important resource in the world. Petroleum has had its day in the sun, but nothing lasts forever. The reason the US is still dependent on oil is because you can buy oil cheaper than you can make other options. As soon as the economic incentives turn the other way, youll see electric cars, etc. In terms of resources you have China/USA (maybe Canada/Russia), just isnt an overwhelming concern, because in reality the US has a lot more oil in its borders, we just have decided not to use it.

in reality the US has a lot more oil in its borders, we just have decided not to use it.

Do you disagree that the US has untapped oil reserves?

Do you disagree that the US has untapped oil reserves?

Significant and economic? No.

I dont think I ever said otherwise. Just merely the US has oil and if a worst case scenario happened (Us looses access to all foreign oil) the US, unlike UK, France or many other AAA nations, actually has oil within its borders and could access it if necessary.

 

Once again why the US is a far more stable economy.