Possible that Stock Market Panic Starting Now

[KnightWhoSaysNit]

I watched Powell this afternoon. I watched the stock market go nuts. The bond market sold off, raising yields late in the day extremely fast as Powell mentioned that inflation was actually worsening. And yet, he once again said nothing substantive on policy -- more wait and see. He did lament the hardship for people on fixed incomes, and those who spend most of their income on food, energy, and housing.

Powell has an impossible choice to make. He can pretend that mounting inflation will just go away through some kind of miracle increase in productivity, while those people suffer further. Or he can do the bidding of the wealthy and his handlers in government, offering little but lip service and token rate increases on inflation.

Let's not kid ourselves. Restoring the supply chain is not a productivity increase relative to the pre-pandemic era, which also saw a more sane energy policy/prices. Even if supply issues could be resolved quickly how could this stop inflation with such a mammoth increase in the money supply? You'd think Biden might back track on his bad energy policies amid what is becoming an emergency for marginal people. But no. He just made the Fed in charge for inflation control, while blaming a lack of competition as the root cause.

With either choice Powell and members of Congress have to live with themselves. They are making people on fixed incomes pay for this by creating hyperinflation. Pensions will be evaporated. Even the CPI will not cover adjusted incomes.

Powell was asked if he and government went too far. He defended government and said he will wait to see how history views this period.

To me the math simply does not add up, even if Russia and China behave themselves. History will see it the same way it currently sees the 1970s, at best.

 

[bdgan]

You didn't buy stock with your income? Do tell.

I first purchased stock when I was 16 years old. I used paper route money. I had a modest income during the early part of my career but I always lived below my means and saved/invested a minimum of 10%.

 

[bdgan]

If you want to be in the 10% then you need millions of dollars to purchase the stocks to "participate". Most people can't afford to participate.

False ignorant statement

 

[bdgan]

I watched Powell this afternoon. I watched the stock market go nuts. The bond market sold off, raising yields late in the day extremely fast as Powell mentioned that inflation was actually worsening. And yet, he once again said nothing substantive on policy -- more wait and see. He did lament the hardship for people on fixed incomes, and those who spend most of their income on food, energy, and housing.

Powell has an impossible choice to make. He can pretend that mounting inflation will just go away through some kind of miracle increase in productivity, while those people suffer further. Or he can do the bidding of the wealthy and his handlers in government, offering little but lip service and token rate increases on inflation.

Let's not kid ourselves. Restoring the supply chain is not a productivity increase relative to the pre-pandemic era, which also saw a more sane energy policy/prices. Even if supply issues could be resolved quickly how could this stop inflation with such a mammoth increase in the money supply? You'd think Biden might back track on his bad energy policies amid what is becoming an emergency for marginal people. But no. He just made the Fed in charge for inflation control, while blaming a lack of competition as the root cause.

With either choice Powell and members of Congress have to live with themselves. They are making people on fixed incomes pay for this by creating hyperinflation. Pensions will be evaporated. Even the CPI will not cover adjusted incomes.

Powell was asked if he and government went too far. He defended government and said he will wait to see how history views this period.

To me the math simply does not add up, even if Russia and China behave themselves. History will see it the same way it currently sees the 1970s, at best.

It's amazing that Biden blames big companies/lack of competition for inflation. The size of the companies and level of competition was exactly the same when inflation was < 2%.

 

[bdgan]

I never said anything about taxing wealth. Or raising taxes to create new social programs.

All I'm saying is that for most people in country the stock gyrations don't really mean anything.

Also anytime you support policies that encourage companies to pump their stock price up like stock buybacks you are supporting policies that predominantly benefit the wealthy.

What policies encourage companies to buyback their own shares?

 

[rumble_lion]

I watched Powell this afternoon. I watched the stock market go nuts. The bond market sold off, raising yields late in the day extremely fast as Powell mentioned that inflation was actually worsening. And yet, he once again said nothing substantive on policy -- more wait and see. He did lament the hardship for people on fixed incomes, and those who spend most of their income on food, energy, and housing.

Powell has an impossible choice to make. He can pretend that mounting inflation will just go away through some kind of miracle increase in productivity, while those people suffer further. Or he can do the bidding of the wealthy and his handlers in government, offering little but lip service and token rate increases on inflation.

Let's not kid ourselves. Restoring the supply chain is not a productivity increase relative to the pre-pandemic era, which also saw a more sane energy policy/prices. Even if supply issues could be resolved quickly how could this stop inflation with such a mammoth increase in the money supply? You'd think Biden might back track on his bad energy policies amid what is becoming an emergency for marginal people. But no. He just made the Fed in charge for inflation control, while blaming a lack of competition as the root cause.

With either choice Powell and members of Congress have to live with themselves. They are making people on fixed incomes pay for this by creating hyperinflation. Pensions will be evaporated. Even the CPI will not cover adjusted incomes.

Powell was asked if he and government went too far. He defended government and said he will wait to see how history views this period.

To me the math simply does not add up, even if Russia and China behave themselves. History will see it the same way it currently sees the 1970s, at best.

So when stock crashes is that considered inflation?

 

[rumble_lion]

I first purchased stock when I was 16 years old. I used paper route money. I had a modest income during the early part of my career but I always lived below my means and saved/invested a minimum of 10%.

So now you are in the wealthiest 10% with your stock holdings?

 

[rumble_lion]

What policies encourage companies to buyback their own shares?

Buybacks were illegal throughout most of the 20th century because they were considered a form of stock market manipulation. But in 1982, the Securities and Exchange Commission passed rule 10b-18, which created a legal process for buybacks and opened the floodgates for companies to start repurchasing their stock en masse.

The SEC's decision to make this shift came against the backdrop of President Ronald Reagan's era of deregulation and coincided with the rise of 'free market' economists preaching a new type of social responsibility for business: increasing profits.

 

[junior1]

So now you are in the wealthiest 10% with your stock holdings?

According to all knowing internet, you’re in top 10% with net worth of $1.219 million.

 

[royboy]

All I'm saying is that for most people in country the stock gyrations don't really mean anything.

All I'm saying is the stock market is not that big deal for the average person. The bulk of all stocks are owned by the wealthiest people. That is just the facts.

145 million Americans own stocks.

Yeah, just not very much. If every person in the the US owned 1 share of stock except one person that owned the remaining 30 billion shares would anyone care that "everyone in the US owns stock!"?

What the stock market does has an very outsized impact on just 10% of the population. For most people it just doesn't affect them. Oh and that 10% also just happens to own all the media. So we certainly do get to hear about what the stock market is doing.

The wealthiest 10% of Americans now own 89% of all U.S. stocks held by households, a record high that highlights the stock market’s role in increasing wealth inequality.​

Fact is, market investments matter for every American that participates.

Yeah, the for 10% that own almost all stocks it matters a lot. And since they own all the media boy do we get hear about it. As far a participation well you don't just sign up right? If you want to be in the 10% then you need millions of dollars to purchase the stocks to "participate". Most people can't afford to participate.

It's about the scale.

That's what I said.

Stocks matter to far more than 10 per cent of the population.

Many, many people (well over 100 million and I've seen 145 million mentioned here) participate in the stock market, many through employer plans such as the 401-k.

And regular contributions to such plans can have a major long-term economic benefits to the millions who participate. So market changes are very important to far more than you acknowledge.

@rumble_lion , I (and many others) get tired of the way you twist language, fail to acknowledge basic facts, demean the opinions of others, and lie.

 

[rumble_lion]

Stocks matter to far more than 10 per cent of the population.

Many, many people (well over 100 million and I've seen 145 million mentioned here) participate in the stock market, many through employer plans such as the 401-k.

And regular contributions to such plans can have a major long-term economic benefits to the millions who participate. So market changes are very important to far more than you acknowledge.

@rumble_lion , I (and many others) get tired of the way you twist language, fail to acknowledge basic facts, demean the opinions of others, and lie.

Uh oh, someone has hurt feelings!

 

[HartfordLlion]

All I'm saying is the stock market is not that big deal for the average person. The bulk of all stocks are owned by the wealthiest people. That is just the facts.

According to Gallop 56% of Americans own stocks. Seems pretty significant to me.

 

[royboy]

Uh oh, someone has hurt feelings!

Why would I have hurt feelings for pointing out your dishonesty?

I'm not the only poster who has noticed.

 

[Nbergbuck]

Actually, she just feeds insider trading information to her husband. They all do in Congress. It's a complete joke.

Also known as insider trading, which is supposed to be illegal.

 

[psuted]

Uh oh, someone has hurt feelings!

You’re pathetic

 

[bdgan]

So now you are in the wealthiest 10% with your stock holdings?

A $1 million net worth gets you into the top 10% of net worth. That's not a high bar. A lot of people have that in just real estate

 

[bdgan]

According to Gallop 56% of Americans own stocks. Seems pretty significant to me.

Also, everyone with a defined benefit pension is getting their benefits from a fund invested in stocks.

 

[bdgan]

The SEC's decision to make this shift came against the backdrop of President Ronald Reagan's era of deregulation and coincided with the rise of 'free market' economists preaching a new type of social responsibility for business: increasing profits.

Stop deflecting

 

[junior1]

A $1 million net worth gets you into the top 10% of net worth. That's not a high bar. A lot of people have that in just real estate

I'd bet that quite a few posters on here fall into that 10% category. Maybe even some of those who rail against the wealthy in this country

 

[bdgan]

I'd bet that quite a few posters on here fall into that 10% category. Maybe even some of those who rail against the wealthy in this country

I would certainly hope so. I assume that most are college graduates middle age and higher.

In fact, anybody making ~$75k who puts 10% into their 401k for 30 years should retire with a $million nest egg.

 

[rumble_lion]

Also known as insider trading, which is supposed to be illegal.

Not for congress critters. They made an exception for themselves. All they have to do is report their stock buying/selling and I think they have 30 day window to do that. Oh and if they fail to report their trades then I think it's a 200 dollar fine.

 

[junior1]

I would certainly hope so. I assume that most are college graduates middle age and higher.

In fact, anybody making ~$75k who puts 10% into their 401k for 30 years should retire with a $million nest egg.

according to data, 11.8% of american households had a net worth of $1,00,000 or more in 2020 (about 15.3 million households)
To be in the 1%, you only need a net worth of a little more than $11 million.
Median household net worth is $121,411

 

[bdgan]

according to data, 11.8% of american households had a net worth of $1,00,000 or more in 2020 (about 15.3 million households)
To be in the 1%, you only need a net worth of a little more than $11 million.
Median household net worth is $121,411

Also, I wouldn't expect too many 25 year olds just starting their careers to be millionaires. They should care about the market because that's how many are going to become millionaires. I would definitely expect a lot more "investment" millionaires as they approach retirement.

 

[HartfordLlion]

I would certainly hope so. I assume that most are college graduates middle age and higher.

In fact, anybody making ~$75k who puts 10% into their 401k for 30 years should retire with a $million nest egg.

Just don't get divorced. I've know multiple enginners who were well on their way to be a high net worth couples only to get knocked back significantly due to divorce. When the bitch gets half, that's hard to bounce back from and god forbid you are in a state that requires alimony.

 

[bdgan]

Just don't get divorced. I've know multiple enginners who were well on their way to be a high net worth couples only to get knocked back significantly due to divorce. When the bitch gets half, that's hard to bounce back from and god forbid you are in a state that requires alimony.

Sometimes it's the husband that was a jerk. But yes, alimony & child support can be a killer.

 

[KnightWhoSaysNit]

It's 1 PM Eastern Time on Friday.

I think the behavior of the market toward the close will provide a key indication of market sentiment. Apple gave everything a boost early on. Let's see if people are selling the rallies.

 

[KnightWhoSaysNit]

Markets way up at the close. I read this as a sign that the market believes Powell will give inflation lip service. It was a Friday afternoon with Russia likely to invade the Ukraine at any time. Apparently the markets believe The West will be passive. I am not surprised. Just a group of weak socialists, now to include the USA.

 

[rumble_lion]

Markets way up at the close. I read this as a sign that the market believes Powell will give inflation lip service. It was a Friday afternoon with Russia likely to invade the Ukraine at any time. Apparently the markets believe The West will be passive. I am not surprised. Just a group of weak socialists, now to include the USA.

I would think the vast majority of Americans would not want to sacrifice any US soldiers lives for Ukraine.

 

[PaoliLion]

Bitcoin is correlation to the market is remarkable

? Did you really just say that out loud?

Let me give you a quick education on investments. Cheap money (low interests rates) increases speculation, while more expensive money reduces speculation. It’s that simple.

 

[TFBaum]

? Did you really just say that out loud?

Let me give you a quick education on investments. Cheap money (low interests rates) increases speculation, while more expensive money reduces speculation. It’s that simple.

You have no idea what I do for a living

 

[KnightWhoSaysNit]

I would think the vast majority of Americans would not want to sacrifice any US soldiers lives for Ukraine.

That's true, but this isn't really about sacrificing American life. It's about what the USA and Europe (NATO) will do about blatant aggression from Russia.

It's the perfect time for people like Putin to act. The problem is that it could start WW3.

I had written a long explanation as to why this is so dangerous, and likely, but decided not to share it. Books will surely be written if my fears ring true, and some form of a free humanity survives.

WW1 started over a political assassination. In relative terms, at the time, one would have thought it insignificant with respect to global stability.

WW2 was started over the unresolved problems left over from WW1.

Same with WW3. There have been residual problems left over from WW2.

 

[Jerry]

I would think the vast majority of Americans would not want to sacrifice any US soldiers lives for Ukraine.

Quite true, but you may be laboring under the comfortable but outdated opinion that our country is still a functional democracy where the views of the vast majority of the population have some bearing on the policy of the government. That's not the case.

 

[rumble_lion]

That's true, but this isn't really about sacrificing American life. It's about what the USA and Europe (NATO) will do about blatant aggression from Russia.

It's the perfect time for people like Putin to act. The problem is that it could start WW3.

I had written a long explanation as to why this is so dangerous, and likely, but decided not to share it. Books will surely be written if my fears ring true, and some form of a free humanity survives.

WW1 started over a political assassination. In relative terms, at the time, one would have thought it insignificant with respect to global stability.

WW2 was started over the unresolved problems left over from WW1.

Same with WW3. There have been residual problems left over from WW2.

That's true, but this isn't really about sacrificing American life. It's about what the USA and Europe (NATO) will do about blatant aggression from Russia.

At the very least I assume they deliver a very strongly worded letter to Putin.

There have been residual problems left over from WW2.

The problems have been around since 1945?

 

[TFBaum]

I would think the vast majority of Americans would not want to sacrifice any US soldiers lives for Ukraine.

The problem is we are not just America we are in NATO. Hence WW1

 

[rumble_lion]

The problem is we are not just America we are in NATO. Hence WW1

Ukraine is not a NATO member.

 

[TFBaum]

Ukraine is not a NATO member.

And you won the prize. They have asked for membership, Russia wants to install a Russian friendly Ukraine government. You can thank all of this on the Obama administration and good olde Hillary when they overthrew the pro Russia government that was in place. This is a culture war Ukraine is a western non Slav country Russia is a Slav country. Where is Lt. Col Vindman and that pencil neck that told the world they knew better about what and how to deal with the Ukraine?

 

[dailybuck777]

Substantial rally after my initial post. Close to 4% decline of Nasdaq today fairly close to lows at the time of my post. S & P 500 down 2.5%.