Money & Economics

Getting ugly out there

 
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We’re getting close to something big. I’m just not smart enough to know what

 
Amen...

From ZeroHedge:

"This is what a paper market looks like when reality hits. Years of leveraged speculation, synthetic contracts, and supply illusion have built a system that only functions as long as no one calls for delivery. This week, people did. And the market buckled."
 
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Theme for the day.
Could be a bumpy ride, hang on

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And so it continues.
One guy, who can't maff's, swings the markets hundreds of $Billions of dollars as his comments do 180's almost daily

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Well worth the 28 min imho.

The lady hosting is useless, (and fortunately has little actual time in the interview) but the guest, Simon Mikhailovich, co-founder and managing partner of The Bullion Reserve, was fascinating to listen to. Ignore the clickbait title. The guy is no conspiracy nut.
(Oddly he wasn't pushing gold, and it had little at all to do with the title involving confiscation. I think the lady is just a poor bimbo marketer).
But he explained some things in very simple language and seems to be a pretty smart guy.

 
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The Final Crisis: This Is Our Future​

I was just reading about the Buffet Indicator... Total value of stocks divided by GDP. When stocks reach 120% to 150% valuation versus GDP, it is a sign that a major correction is coming. Currently, the Buffet Indicator is at about 210% of GDP, meaning the market is VERY over-valued. The Trump Presidency may see a major Market correction... That got me wondering about the Federal government taking partial ownership of certain corporations. Could that be a pre-emptive move to stabilize things?

 
I was just reading about the Buffet Indicator... Total value of stocks divided by GDP. When stocks reach 120% to 150% valuation versus GDP, it is a sign that a major correction is coming. Currently, the Buffet Indicator is at about 210% of GDP, meaning the market is VERY over-valued. The Trump Presidency may see a major Market correction... That got me wondering about the Federal government taking partial ownership of certain corporations. Could that be a pre-emptive move to stabilize things?


Interesting hypothesis.
IMHO .gov would have to own a lot more companies than current to have an impact. They seem to be content for now in nationalizing specific long term mission critical industries with select troubled companies. They aren’t going to as easily strongarm dominant players like Nvidia, Microsoft or Freeport McMoRan, Newmont as doing so would crush the value of the very assets they want to control.

Also remember the 2008/2009 crash. .gov took major stakes in Auto, Insurance, Banking, and other companies and each raced to get out from under that thumb as fast as possible afterwards.
 
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