Skip to comments.TALK OF QE3 SAVES THE DOW FROM HISTORIC LOSING STREAK
Posted on 08/03/2011 2:06:51 PM PDT by blam
TALK OF QE3 SAVES THE DOW FROM HISTORIC LOSING STREAK: Here's What You Need To Know
Aug. 3, 2011, 4:00 PM But first, the scoreboard:
S&P 500: +7.05
And now, the top stories:
* With the debt deal over, the focus turns (finally!) to the ongoing crisis in Europe, and the worsening economy in the US. In Europe, there wasn't much new in terms of developments. The main thing that gave markets a bit of an early lift was an emergency rate cut by the Swiss National Bank in the hopes of stemming the meteoric rise of the Swiss Franc. Nobody really expects it to work.
* Other than that, it was just more selling of Italian stocks, mostly. PM Silvio Berlusconi addressed the Italian parliament today, but didn't really say anything. Mainly he just slammed speculators for not understanding how strong the Italian economy was. We'll see if the lack of specificity causes more pain tomorrow. Overall, a bad day. Click here for a guide to how Italy got to be such a wreck >
* All of this helped gold have another monster day, as it hit new records.
* In the US, with earnings season fading into the distance, it's all data data data. And on that point, it was decidedly underwhelming today, if not straight up bad. At 7:30, the Challenger layoffs report showed a HUGE surge in job eliminations in July. At 8:15 the ADP jobs report was a bit better than expectations (but its ADP!) and at 10:00 the ISM services number was in growth territory, but down from last month, and below expectations.
* After all the data, markets really started getting smashed, with the Dow off 150 at one point.
(Excerpt) Read more at businessinsider.com ...
Economic isolationists should note how the Swiss were forced into taking action for the benefit of the Swiss because of the actions of the nations around Switzerland. I agree that a 25 basis point increase is not going to stem the speculation. So they are stuck with an appreciating currency which kills their exports or moving to a interest rate so low that it will generate inflationary pressures.
How much panic is about to erupt in Southern Europe?
So, like himself, essentially.
QE 1 and QE 2 were the only things propping up the market.
The problem now is that Big Ben’s gun is empty—You can’t have negative interest rates. Plus, the injection of more funny-money into the market is going to cause inflation to take off like kudzu in June.
Obambi Gets the debt ceiling raised and doesn’t miss a step demanding we do something else he wants.
Study this you miserable wretch Republicans. When you get full power again, do something with it.
The democrats sure do.
They will do nothing we want them to do if it’s the current batch of pubbie leaders we have now. They are more concerned about preserving the status quo and keeping things running as they always do, rather than doing anything tough.
Done with the current leadership save Paul Ryan and my rep.
Can we say Hyperinflation?
That's right. And only another injection of Bernanke's Magic Elixir can drain the poisons. And then, perhaps, well, just one more.
I'm more and more convinced that we may never see the general price inflation that you might expect from all this new money, but, be assured, another serious crash has to come from all this. There's no other way -- it is a house of cards.
I don't know. Europe may trigger it.
Heh, Obama’s already dipping into his stash. They pushed hard to get it into plus territory after being 200 down on the day.
Here is a scenario: Europe and the US both hit the wall at the same time. As the Western nations are drowning in debt, they agree to a simultaneous restructure/write-off of debt and reset the game.
Of course, they will have to re-write the Constitution and the European Union Treaties.
I think we have to look towards the USSR dissolving into the Russian Federation as the example of what the liberals will try.
Yup. Some sort of inflation.