Expect a 10+% one day drop in major indices. We have not had it for many years.
It looks like that the market is set up for such big crash.
Q2 GDP growth will rebound. There is no doubt about it, given the extreme weather condition in Q1. But what happens after that?
Even Federal Reserve, in the recent FOMC release, sharply lowered its growth forecast for 2014 to 2%. Walmart came out today saying that the rise in the consumer spending did not translate into rise in same store sales. Where did the extra spending go? Maybe the extra spending can mostly be attributed to well-to-doers who own stocks?
Growth for 2015 and onward is the major concern for the ruling elite, because without growth, the world's perception on US' ability to pay back its debt will change and US Dollar could be under tremendous pressure. That is why Obama needs to EO the immigration reform probably by Labor Day.
What happen after that? Only God knows for sure. I say a crash.
This might be the reason why the stock market could move up further.
But we all know what will happen in the end.
I think that there are more to it than what meet the eyes.
It looks like that a system wide crash and reboot might come within a decade, and interestingly, that is probably has been programmed into the system program sequences. ;-))
Then I assume that the system knows how to reboot properly.
might pile in later today.
I hope that they did not turn off their servers for the summer holiday. ;-))
Just imagine many asset managers are calling in from their vacation to put in the sell orders, after learning the news about Jamie Dimon.
Jamie Dimon is the soul of JP Mortgan Chase. What happen to a global bank without a soil? ;-))
which is 100% curable; the other is malignant, which has higher chance of being curable compared with other types of malignant tumors.
The internal memo said "cancer". That means the tumor is malignant, and has high chance of spreading to other part of the bodies.
I wish the best for Mr. Dimon.
The stock market and money are just games. Sometimes you lose and sometimes you gain. When you gain, you know that the gain is not actually yours in the cosmic order. You should share your love.
Loving and sharing are the eternal orders. Apparently many of us are still learning these basic principles. ;-))
Maybe Mr. Dimon simply wanted a rest from this Federal Reserve madness. He should turn off his smart phone for eight weeks. ;-))
I wish him the best.
My advice for people is: do not swallow more than you can chew. Otherwise, this happens. Please pace it!
Obama executive-orders the immigration reform so that the 16-20 million undocumented immigrants would be eligible immediately to various federal and state welfare programs. Obama and the Federal Reserve count such extra spending would greatly boost the near-term GDP growth due to multiplier effect more than it would boost the budge deficit and total debt load.
The market seemingly live each day as its last ;-))
Like any other social issue, immigration reform is a complicate one.
My point is that Obama is going to rush it without Congress, because his sponsors need the short-term beneficial effect of boosting GDP growth. But over the longer term, I wonder whether they care.
If Mr. Obama issue Executive Order to make the undocumented immigrants to be eligible for federal/state benefit, then you know that they are in a hurry to try to boost faltering GDP growth, which is largely dependent on the asset price appreciation.
Ask yourself, why suddenly the legalization of undocumented immigrants become such a pressing issue? Ten of thousands of people crosses border every year, why suddenly the news media decide to take on this BIG issue?
I think that, in order to boost US GDP growth, they can no longer wait for the Congress to pass the comprehensive immigration reform. They need Obama to issue some Executive Order to make the people eligible for Federal/State benefit programs now so that they can help to boost the faltering GDP growth.
So they need to create a sense of urgency.
The notional value of all currently outstanding IRS contracts could reach tens of trillions dollars. But nobody knows it for sure because these products are traded over-the-counter, i.e. not regulated by any official institutions from any sovereign nations.
It is not even regulated by the private consortium of global bankers -- the Federal Reserve.