Stocks Slammed for Second-Straight Session on Global-Growth Worries

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• The only good thing is people Like Zuckerberg and Gates lost a ton of money...They didn't build that and have made enough money, at least according to our esteemed economically minded dictator.

• And the end result will be the Fed will announce that they won't raise interest rates next month, thereby kicking the can down the road a little while longer. Meanwhile when the free money bubble does pop, the explosion will be that much worse.

  • The Fed and other central banks are at a crossroads. They have basically used interest rates and money printing. They lower interest rates or print money to boost liquidity and spending in downturns and raise interest rates once an economy is deemed to be recovered. The reason why rates have remained historically low and stagnant for six, seven years is because there has been no recovery. In its place was quantitative easing, where the Fed massively increased its balance sheet by buying crappy assets to try to keep things going.

    Once they stopped, that's when everything started hitting the fan.

    Now, with another downturn on the horizon, they can't use interest rates because they're already basically at zero. The only bullet they have left is more QE.

    Confucius say: "May you live in interesting times". Well Confucius, interesting times are one thing, this clusterfvck globalized economy is another.

• I've been telling everyone this was going to happen ever since the Dow hit 17,000. I had a feeling that it would keep rising until it hit over 18,000 and then all the sunshine Barky and Co have been blowing up our asses will go away. That's why I took everything out at over 18,000 and put it in either an indexed annuity or an interest bearing account.
  Now that my wife is hitting the magic number, she is in the position to keep away from any risk, so she will stay where she is, but I might go back to the market when it gets below 15,000 again, although I might wait to see how low it will go and then get back in after it has about 3-4 weeks of steady growth. It will just be at least 2-3 years before we see that happen, and I might as well stay where I am, since I'll be 60 in 4 years.

  edit
  I just checked my interest bearing account, and it has increased 1.44% since June 3rd.

  • I've been telling anyone that would listen for five years. Oh, the market will get back below 15,000 again, mark my words. Realistically, it should correct down to 5,000 but it will probably end up around 9-10,000 or so. It will probably be a drawn out affair since they enacted "circuit breakers" to shut down the markets once losses reach a certain percentage, I believe 10%.

    The wild card is the fact that almost all the global markets react to one another so US markets gains and losses aren't strictly based on US companies' performance any longer. Market fundamentals? They went *poof* years ago.

    I personally wouldn't touch the markets with a ten foot pole but if you do, make sure you have a stop loss order on any securities or commodities you hold to cover your ass.

• I've been warning friends and family for over a year that this little party would be winding down before too long. Read an article recently that the vast majority of growth in the S&P 500 this year is due to five companies. Apple, Netflix, Amazon, Google and Facebook. The average growth among the other 495 is minimal at best.

  Unless the Fed dials up some more QE, it could get ugly.

  Bonus: The chart at the bottom of this article says it all.

  https://www.caseyresearch.com/articles/why-it-feels-like-something-isnt-quite-right-with-the-stock-market

• FYI--The state has to dump a bunch of "special" chemicals into the gas already in the pot and mix before they sell it. Making it less effective so JB can kiss the tree huggers asses and waste more money.

• "Which poses the question why the bawk is gas in California still over $3.00 per gallon?"

  We are paying $2.69 and I live within 200 miles of two different refineries, right on the edge of the booming Texas oil patch and just north of our own oil boom in southeast New Mexico.

  As far as Kalifornia gas prices go, blame it on all the Moonbeams that keep getting elected. Kali. has the strictest emission control laws in the country, bar none, and all the gas shipped there has to be refined specifically to meet their specs. Since there are not enough refineries in the state to meet their needs, and the eco-freaks will never allow any to be built, other refineries in the country have to shut down and recalibrate everything just to make gas for Kalifornia. This screws the rest of us because it affects the supply in my part of the country, where oil is king and we have our own refineries.

  F**king Kalifornios, nothing personal NSS and others, do not realize that their emission control standards have a negative effect on other states, even those of us in the middle of billions of gallons of crude.
  .

  • Jukin is right, additives, particularly ethanol, factor into the cost of gas. That includes the cost of purchasing and processing the product used in ethanol, transport, etc. I believe California relies mostly on gas from west coast refineries and with all the "green" regulations there, that likely factors in as well.

    Federal and state gas taxes, which vary, also factor in. I live in Indiana which has one of the highest gas taxes of any state. We recently experienced a 30 cent jump in prices because the gas we use comes from a the Whiting refinery here that experienced a catastrophic equipment failure that is affecting prices not only here but around the midwest.

    Everyone thinks the price of gas is tied solely to the cost of oil but there is so much more to it than that. There are different types of oil with different properties and it is extracted by different methods, some of which are more costly than others.

    Just another example of how global finance is so fvcked up that nothing is as simple as 2+2=4.

  • Sure the special blends gasoline adds to cost as only boutique refineries make it but the bigger factor is our 80 cents of tax per gallon.

• Wait, what? You mean to tell me QE doesn't work? I bet it would have if Bush hadn't fked things up beforehand...

• Wonder if Obutthead is gonna blame Bush again? He owns this bullshit, totally.

• Bubble, meet pin.

• Don't panic. If you must panic, be the first to do so or you'll be too late.