Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Fear of 'Catastrophic' Crash Rising Despite Bull Market
CNBC ^ | 02/18/2011 | CNBC

Posted on 02/18/2011 4:30:12 PM PST by The Magical Mischief Tour

In an unprecedented move, the number of investors fearing a catastrophic stock market crash is rising even with the stock market at 2 ½ year highs.

The unusual dislocation comes from two distinct reasons: a lack of trust in the U.S. financial markets following the so-called Flash Crash last May and the collapse of Lehman Brothers in 2007.

This means the Flash Crash Advisory Commission that met on Friday has a long way to go in restoring confidence to the point that will bring the individual investor back into a market still ruled by high frequency trading, exchange-traded funds and leveraged hedge funds.

The Yale School of Management since 1989 has asked wealthy individual investors monthly to give the “probability of a catastrophic stock market crash in the U.S. in the next six months.”

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy; Crime/Corruption; Front Page News; Government; News/Current Events
KEYWORDS: economy
Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-67 next last
To: The Magical Mischief Tour

yah, well hold this thought: This summer the Federal Reserve is going to have to discontinue QE-2, and from that point to the end of the year we will get a peek at the true condition of the American economy.

It will be like kicking the crutches from a guy not with casts on his legs, but with the legs amputated above the knee...


41 posted on 02/18/2011 6:05:33 PM PST by Bean Counter (Stout Hearts...)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SE Mom

Thank you for the ping. I think banana ben has tied himself not only to the Feds member banks but to obama and a lot of people are beginning to realize this will end badly.

Everything is “Fine” In The Game of Perpetual Bailout

http://wealthcycles.com/blog/2011/02/17/the-fed-and-us-government-choose-isolvency-and-perpetual-bailout

Politics of Inflation

http://www.merkfunds.com/merk-perspective/insights/2011-02-16.html

A Reader’s Letter To Ben Bernanke

http://www.zerohedge.com/article/readers-letter-ben-bernanke

Where’s the wall of worry?
Commentary: Bullishness has recently become dangerously high

http://www.marketwatch.com/story/bullish-sentiment-is-high-maybe-too-high-2011-02-15

THE BERNANKE PUT AND INSTABILITY IN COMMODITY MARKETS

http://pragcap.com/the-bernanke-put-and-instability-in-commodity-markets

Investors See Pullback Coming But Still Buy Stocks

http://www.cnbc.com/id/41665565


42 posted on 02/18/2011 6:05:39 PM PST by FromLori (FromLori">)
[ Post Reply | Private Reply | To 23 | View Replies]

To: FromLori

Thanks for the links- excellent references!


43 posted on 02/18/2011 6:06:52 PM PST by SE Mom (Proud mom of an Iraq war combat vet)
[ Post Reply | Private Reply | To 42 | View Replies]

To: screaminsunshine

>>How can it be going up on such awful news?<<

Steady cash infusions by the fed. QE2....maybe QE3 coming soon.


44 posted on 02/18/2011 6:10:27 PM PST by servantboy777
[ Post Reply | Private Reply | To 2 | View Replies]

To: Marty62

I’m loking for alternative investing ideas...

Also, stock up on “needs” follow the emergency preparedness lists.


45 posted on 02/18/2011 6:14:25 PM PST by LiveFreeOrDie2001 (Best Cook on Free Republic! ;-))
[ Post Reply | Private Reply | To 40 | View Replies]

To: LiveFreeOrDie2001

Would you happen to have a link to a list. I think about it but there must be someone that has already put one together.


46 posted on 02/18/2011 6:17:24 PM PST by Marty62 (Marty 60)
[ Post Reply | Private Reply | To 45 | View Replies]

To: hinckley buzzard
>>US corporations are making healthy and sustained profits.<<

On downwardly revised estimates and earnings for the past two years. Two, sometimes three downward revisions over the last several quarters. Not impressive.

>>Nobody sits on cash at that level.<<

This is not a true statement. My corporation now holds close to twenty billion in cash reserves since the recession began and many corps have followed suit.

The one thing that is true regarding your post is corporations are launching stock buy backs to prop up the share prices.

Earnings are not enough to buoy share prices.

Also, Quantitative Easing 2 from Uncle Sugar has the markets ticking up since last September...not earnings.

47 posted on 02/18/2011 6:21:49 PM PST by servantboy777
[ Post Reply | Private Reply | To 8 | View Replies]

To: The Magical Mischief Tour

sfl


48 posted on 02/18/2011 6:27:37 PM PST by phockthis
[ Post Reply | Private Reply | To 1 | View Replies]

To: hinckley buzzard

With all respect, you should read post 6 by lucky american. He/she is correct, you are dead wrong.


49 posted on 02/18/2011 7:14:01 PM PST by spyone (ridiculum)
[ Post Reply | Private Reply | To 8 | View Replies]

To: SatinDoll

Appreciate it.


50 posted on 02/18/2011 7:42:31 PM PST by GnuHere
[ Post Reply | Private Reply | To 27 | View Replies]

To: Marty62

Yes!

Here you go. Scroll down & there’s tons of links on the left...

http://ferfal.blogspot.com/2011/01/economic-collapse-preparedness-what-to.html


51 posted on 02/19/2011 5:39:32 AM PST by LiveFreeOrDie2001 (Best Cook on Free Republic! ;-))
[ Post Reply | Private Reply | To 46 | View Replies]

To: The Magical Mischief Tour
"In the latest survey in December, almost 75 percent of respondents gave it at least a 10 percent chance of happening. That’s up from 68 percent who gave it a 10 percent probability last April, just before the events of May 6, 2010."

OK, so 75% (up from 68%) of high net worth individuals think there is a 10% or greater chance that there will be 'Catastrophic' stock market crash in the next 6 months.

Isn't that the same as saying 75% of high net worth indivuals think there is nearly a 90% that there will NOT be a 'Catastrophic' stock market crash?

52 posted on 02/19/2011 6:51:05 AM PST by Walleye_Walter (Not all Libs are stupid, but all stupid people are Libs)
[ Post Reply | Private Reply | To 1 | View Replies]

To: LiveFreeOrDie2001

Well THAT’S just great. We are *(&*^&$%&^$&*^


53 posted on 02/19/2011 6:55:37 AM PST by Marty62 (Marty 60)
[ Post Reply | Private Reply | To 51 | View Replies]

To: mewzilla
On a related note (ha ha, from earlier this month....

UPDATE 1-NY Fed names MF Global, SocGen as primary dealers

54 posted on 02/19/2011 6:56:35 AM PST by mewzilla (Hey, Schumer, your Lockerbie report left quite a bit out.)
[ Post Reply | Private Reply | To 17 | View Replies]

To: screaminsunshine

“How can it be going up on such awful news? That alone makes it suspect. I think it is a big scam.”

The stock market is currently controlled by the high frequency trading of 3 or 4 banks with JP Morgan being the king of that hill. People have made some money these last 6 months, but have you seen the percolating world, and now US inflation rate? If the FED weren’t doing QE2 - permanent open market operations (POMO) - of $600 Billion in 6 months - where would the market go (naturally), and since the FED can’t go on forever with QE - where will the markets eventually settle naturally.

Problem is the FED can go on for a quite a while longer and the longer they pour money into the economy the more you’ll see all currencied drop in value relative to commodities (which is why we’re seeing the hot price rises in food and other commodities around the world.) Of course the stock market has gone up in these conditions - it’s dollar based - and the dollar, and all currencies are dropping in value. So this may also continue due to bamster’s re-election hopes among the ‘powers that be.’

Paul Ryan’s questions recently of Ben Bernacke are telling - ‘aren’t you trying to monetize away the government debt?’

I think Bernacke and the other bankers are complete frauds and liars and we need to oppose the Fed and the Federal Reserve Act NOW.

Who’s with me?
I recommend these sites about the topics above:
http://economicedge.blogspot.com/
http://www.marketoracle.co.uk/


55 posted on 02/19/2011 7:47:43 AM PST by SeattleBruce (Tea Party like it's 1773! Repeal the Federal Reserve Act! Pray 2 Chronicles 7:14!)
[ Post Reply | Private Reply | To 2 | View Replies]

To: servantboy777

“Steady cash infusions by the fed. QE2....maybe QE3 coming soon.”

They will destroy the dollar - and all in the name of power and profits. They care not for us. And guess what, at some point, those who don’t control the markets and the money supply WILL GET destroyed - they will pick off the remaining meat from the middle class carcass.

Time for us to repeal the Federal Reserve Act and take back our money.


56 posted on 02/19/2011 7:51:58 AM PST by SeattleBruce (Tea Party like it's 1773! Repeal the Federal Reserve Act! Pray 2 Chronicles 7:14!)
[ Post Reply | Private Reply | To 44 | View Replies]

To: SatinDoll

Attached from an email received -
What happens when the American dollar is no longer the reserve currency for the world - which he shows is happening already.

Very interesting and scary. Hope he is wrong.

http://www.stansberryresearch.com/pro/1011PSIENDVD/LPSIM206/PR


57 posted on 02/19/2011 8:25:32 AM PST by oneaglewings
[ Post Reply | Private Reply | To 27 | View Replies]

To: lucky american
>>The stock market is being run by computers.

Computers don't do jack squat without software...  and the machines on Wall Street are performing according per some specification... that moral craftsmen SHOULD be refusing to code and implement --- But....

LomanBill:  "So you mean at the level of the hardware / software being used to do wire-transfers, the separation between Ameriquest and Argent Mortgage is nothing but an illusion manufactured to prop up a facade of compliance with the attorney's general agreement?"

East Asian Contract "Guest" worker:  "ha ha ha, yeah but nobody knows that!"

LomanBill:  "Ha ha ha?  It's not your country that's being raped, is it, A$$hole?"



It is incumbent upon the honorable craftsman to be aware
of whether or not his services are being used
as a means to accomplish evil ends -
and to act (or NOT) accordingly.

58 posted on 02/19/2011 8:27:35 AM PST by LomanBill (Animals! The DemocRats blew up the windmill with an Acorn!)
[ Post Reply | Private Reply | To 6 | View Replies]

To: steve86

[Because the Federal Reserve is depositing 6-8 Billion dollars of cash in big bank trading accounts most days.]

Exactomundo!

http://www.zerohedge.com/search/node/POMO


59 posted on 02/19/2011 8:31:04 AM PST by LomanBill (Animals! The DemocRats blew up the windmill with an Acorn!)
[ Post Reply | Private Reply | To 9 | View Replies]

To: hinckley buzzard

[we just finished Q4 earnings season—US corporations are making healthy and sustained profits.]

LOL.

And in other news, the chocolate ration will be raised from 45 to 28 grams per week....

Got POMO, homo?

http://www.zerohedge.com/search/node/POMO


60 posted on 02/19/2011 8:33:49 AM PST by LomanBill (Animals! The DemocRats blew up the windmill with an Acorn!)
[ Post Reply | Private Reply | To 8 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-67 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson