FED should let it fall where it may. There is so much dependence on FED it is unbelievable. Whey don't they let investors bare some risk for the first time in 8 years.
Because many are conditioned and most likely stuck in the trade waiting for some sort of bailout by central bank jawboning. Reminds me of drug addicts, always need a fix.
China cut rates just before they published a report that many companies audited by state auditors reported fraudulent financials and fabricated revenues and earnings. I don't think 0.25 rate cut will prevent people from dumping stocks built on foundation of fraud with current PE of 89.
Only to pay interest to Bundesbank.
Here is the thing. Their current budget deficit is about 19% with 23% VAT and already low pensions.
Most of their budget (45%) goes to repay ECB / IMF / EFLS debt along with interest.
So if they don't pay this debt they'll actually be in surplus. Only way to get this country out of the economic mess is to extinguish the debt. Plus all of the CDSs (about) $150BIL worth will be paid but the distribution is all around the world. At least those invested in CDSs will also know that what they are buying is worth something, otherwise that entire market is a scam.
I don't believe that an average Grecian will vote to have VAT higher and their pension lower. They are against austerity. So the way out is already shown by Iceland. Good template.
to put it into stocks with 100 PE or fraudulent financial statements. Most of the folks invested in Shanghai listings do not have access to such borrowings and once they see more red on Monday they'll continue selling even harder just to get out. Bubble has burst and we know that the bottom cannot happen in only a few days, it is a long process just like the tops.
Perhaps....2 weeks of controller up and holding it on the downside. They should let it slide and pop it on the jobs number. Week after that it is Greek Referendum and people will likely see that they need to stay in Eurozone. So week after shortlived pop for Euro and markets. Rest of the summer is earnings season and preparation for Rate liftoff in September.
Janet needs to raise only so she can lower later, otherwise they are risking the only thing that makes them relevant - USD.
Just not sure how much.
Next time God should implement a different strategy and start with the market crash first. That way he would influence the ones that lead this show.
Down on Greece tomorrow. Next week rally on Greece is fixed and July 4th Holiday.
After that pop, you short for longer term. Come this fall (September / October) market will hit big correction.
They are the best in Transfer pricing and tax avoidance.
They are also very good at selling stupid fanboys junk that costs $2 for $50. Marketing machine. Also great in controlling who you buy content from.
For this reason, I spent precisely $0 on Apple products in the past 10 years.
Also, they are looking for a trustworthy selloff so they can accumulate for the bounce.
After Monday scare (another down day), Tuesday will be a pause and Wednesday will be a deal (Greece will pay IMF). Market will rally on 1st and 2nd of July right before the holiday weekend.
After the holiday anything is possible. Jobs report, FED, earnings again.
off the cliff.
Some stocks are so stretched from the recent buyers it is ridiculous. Especially small caps.
It will be fun watching them cram through the small exit in a bid-less market.
Why live for the bankers that print money out of thin air. Default on them.
No point in breaking your back, when that money is nothing but the digit in the computer.