Dow Down Another 500

https://www.dallasnews.com/business/stock-market/2018/10/11/president-trump-blames-loco-federal-reserve-octobers-big-stock-drop

Bad timing, right before the election. gotta be Hillary’s fault.

from above:

Trump has repeatedly criticized the Fed over the past 24 hours as markets plunged, saying Wednesday that the central bank was "going loco." Market analysts, meanwhile, mostly attributed the decline to concerns that Trump's trade war with China could escalate.

...

Trump on Thursday also indicated that the Fed's policies were harming him personally. Trump owes more than $300 million to Deutsche Bank AG of debt with interest rates that rise or fall depending on Fed policy. Higher interest rates could increase his debt payments considerably.

"I'm paying interest at a high rate because of our Fed," he said.

yeah who needs social security when you can instead throw your pension $ to corporate criminals to gamble with?

https://twitter.com/realDonaldTrump/status/119492658963025920

Right, nothing to do with Donnue’s Trade war,  reckless spending and tax cuts to the rich.

Must be the Jews

I'm ready for whatever happens. 

Wonder how Thom is feeling today?

Trump only makes matters worse by criticizing the Fed for raising interest rates. He should let them do their job

and keep his mouth shut. Oh yeah-that never happens-so if he keeps it up the market may continue to spiral down.
 

A bad stock market will not help his party in a month. Deficits are exploding and Wall Street is getting very worried

that the economy will start to suffer as a result. Trump knows little to nothing about economic theory and how the

markets work. What a surprise!

>Financial experts noted several ominous economic indicators, including skyrocketing student loans and U.S. household debts, that could predict a crash "worse than the Great Depression," according to a report in the New York Post. 

Goldman Sachs predicted that this year's U.S. fiscal outlook would be "not good," and that U.S. household debt had been increasing since the 2008 housing crisis led to American taxpayers bailing out the big banks. 

In 2018, experts said, a $247 trillion global debt will be the greatest cause of the next cataclysmic financial crash. Additionally, low wages and the U.S. national debt's steady rise are expected to drag down the economy. 

Economists downplayed recent positive indicators such as low unemployment and soaring business confidence, reiterating they wouldn't last through Trump's first term. At least one expert predicted that recent slides in housing and auto sales were the first step toward a U.S. recession.

Murray Gunn, chief of global research at Elliott Wave International, told the Post, "We think the major economies are on the cusp of turning into the worst recessions we have seen in 10 years. Should the [U.S.] economy start to shrink, and our analysis suggests that it will, the high nominal levels of debt will instantly become a very big issue." 

Experts cautioned that several economic markers had gotten much worse over the past decade, especially in regard to borrowed money. The U.S. household debt of $13.3 trillion is now far worse than it was during its 2008 peak, due primarily to mortgage lending.

Outstanding student loan debts have simultaneously increased from $611 billion of unpaid debt in 2008 to more than $1.5 trillion today. Automobile loans have far exceeded their 2008 peaks, sitting at about $1.25 trillion today, and unpaid credit card balances are just as high as the years leading up to the Great Recession.

Central bankers have also more than doubled global debt as they flooded national economies with cheap and easy money. In 2008, global debt sat at $177 trillion, in comparison to $247 trillion today.

“We won’t be able to call it a recession, it’s going to be worse than the Great Depression,” economic commentator Peter Schiff told the Post. “The U.S. economy is in so much worse shape than it was a decade ago.”

A widespread drop in spending and income means that default rates will likely worsen in coming years. Schiff also blamed the U.S. Federal Reserve and other central banks in part for the impending crisis.

“I think we are going to have a dollar crisis—you think the Turkish lira looks bad now, wait till you see when the dollar is imploding and we have a sovereign debt crisis in the U.S.,” Schiff told the Post. “The U.S. government is going to be given a choice between defaulting on the debt, or else massive runaway inflation.”

https://www.newsweek.com/stock-market-1134867

https://twitter.com/BruceBartlett/status/1050479338355912704

p.s. Peter Schiff is an idiot gold bug.

This is pretty geekish, I apologize:

This is the forward curve as of September 2011, rates today are lower than the market's forward curve 7 years ago.

So I am doubling down (well, 3.5 x to be precise) on Bruce Bartlett's point:   markets have expected these rates for not just the past two years, but the past SEVEN years.

So at the time (fall 2011) that Donald whined about rates being too low, the interest rate structure predicted higher rates today than we actually have.

Naturally, the idiot-in-chief thinks that the rates we have, which are lower than predicted seven years ago, are "too high".

We live in Dumbfuckistan.

So what’s your advice to prepare for the impending depression?  keep cash on hand or invest as the market tanks?

I thought about writing shit, Nancy, but who the hell knows, right?

lower prices mean higher returns, all else equal.

Probably a good time to have at least 10% - 50% in cash now that cash is starting to earn interest, but I am personally about 92% equity, down from 98% equity for the past 9 years. 

Cash right now is good, but why sell if you like the dividend stream?

Contra the above: GE.

ps.

Berkshire hit an all time high yesterday morning, down 7-8% since then.  Michael seems unlikely to be the culprit, so why?  They borrow at zero percent, so increasing rates are wonderful for them.  Just sayin....there are some stocks that I'd like a lot at 10% below where they are today.  Wish I were a higher percent cash, to tell the truth. 

p.s., if you are good at cleaning pools, you might have some money left over to invest in the ownership society.

signed, the most conservative zoner

>>  keep cash on hand or invest as the market tanks?

in 2007 I was 50% cash, I hated the market valuations.

In 2008 I started buying, every fucking time I got killed.

By Spring 2009 I was 100% equity and had lost my ass on almost every purchase.

If I knew how bad it was gonna get, I would have waited, right?

:)

Cash is king, keep some, we have an idiot in chief.

I might raise some tomorrow, who knows.....gambling keeps it interesting.

Trump loves debt. He will tank everything and hope to profit. 

What would you spend cash on during a depression? 

All of this is going on AND my refrigerator may be dying.

What would you spend cash on during a depression? <<<

Pot and Jack Daniels

depression sandwich:  two pieces of shoe leather, spread each liberally with sweat of working class, two slices of bitcoin and voila! good eats.

Buy guns now.

i just bought a PRS guitar & i guess i'll buy ammo now

Guitars will be cheap or free to gun owners with ammo.

Thanks, Steve. 

I'm a lousy gambler, and my "green" mutual funds have never done well - in fact they're tanking more than usual because of Trump's war on renewables/solar. Cashed out most of my funds the day he took office, I know - I jumped the gun a bit..but at least we'll have  cash stashed for the imminent depression.  And the house is paid off, Debt free or die! 

are republicans happy about all of this?

nancy's article is scary.

Will college still be free?

^probably not. Once again  the Democrats will have to spend  8 years fixing all the stuff the Republicans messed up 

>Will college still be free?<

no we can't have nice things like most developed nations when we are busy supporting the military industrial complex and bailing out bankers who gambled and swindled people out of their homes.....

"Guitars will be cheap or free to gun owners with ammo."

So sick of this phony tough guy bullshit. This is certainly the type of crap the NRA wants you to believe

it's never a bad idea to stock some food and water. have you all done that in the event of an emergency?

how many days of food and water do you have?

^how  many days of food and water do you have?

A month or so

^good man. i'm not fear mongering, but we have insurance for everything else that could go wrong in life, why not food/water insurance!?

I live next to a reservoir that I'm claiming when the time comes.

When the time comes you will have been forgotten for many many years.

Looks like a dead cat bounce today. 

For my own selfish reasons, I hope the housing market tanks temporarily as I'm about to go through the home buying process.