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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

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To: The Magical Mischief Tour

The markets see the fact it is the democrats of these state legislatures who are on the run. It’s the Republicans who control an overwhelming majority of state legislatures and to a lesser extent, governor’s offices now. The markets are pleased to see the republican state leadership follow through on their promise. Remember, its the democrats who are running away in Wisconsin. They know what’s coming. It’s only a matter of time. That’s my take. If the republican majorities in the state houses go soft, at some point the markets will crash.


61 posted on 02/19/2011 8:53:09 AM PST by kinghorse
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To: hinckley buzzard

JWith so many stocks making new highs, how much higher can they go?


62 posted on 02/19/2011 9:10:29 AM PST by upcountryhorseman (An old fashioned conservative)
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To: lucky american
The stock market is being run by computers. They trade on probabilities with no emotion attached. These machines make decisions just like Watson and care not for the likes of man.

Most of these "automatic trades" are based on tiny shifts, but take advantage of huge volumes and then are held for mere seconds before selling off in some cases. I can't remember the statistic, but something like 70-80% of all stock purchases are held less than 60 seconds because they are being done by computers on micro-shifts of a stock.

On another note, a correction isn't a matter of "IF" but when. It is just a part of the market and those who can time it, can produce significant results. Those that can't, pay the price.

63 posted on 02/19/2011 1:03:59 PM PST by voicereason (A RINO is just a different shade of Democrat.)
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To: lucky american
The stock market is being run by computers. They trade on probabilities with no emotion attached. These machines make decisions just like Watson and care not for the likes of man.

Most of these "automatic trades" are based on tiny shifts, but take advantage of huge volumes and then are held for mere seconds before selling off in some cases. I can't remember the statistic, but something like 70-80% of all stock purchases are held less than 60 seconds because they are being done by computers on micro-shifts of a stock.

On another note, a correction isn't a matter of "IF" but when. It is just a part of the market and those who can time it, can produce significant results. Those that can't, pay the price.

64 posted on 02/19/2011 1:04:08 PM PST by voicereason (A RINO is just a different shade of Democrat.)
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To: grobdriver

>> Where do I put my money ping

For a small fee, I’ll let you bury it in my back yard.


65 posted on 02/19/2011 1:17:14 PM PST by Nervous Tick (Trust in God, but row away from the rocks!)
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To: SeattleBruce
It's way too late. Our national debt equals total GDP.

Servicing the debt amounts to billions now.

Our economy appears as if it's pulling out of recession slowly, but this is only an illusion.

We do not have enough good paying manufacturing positions to generate adequate tax revenue nor GDP.

Come April QE2 funds will have been depleted to the tune of 600 billion, what's next?

The markets will either begin a downward spiral or the Federal Reserve along with Treasury will approve yet another quantitative easing, pumping billion more into the markets to help keep them afloat.

All the while, inflation continues to rise, interest rates although steady will begin their rise in an attempt to tame inflation......Jimmy Carter all over again.

Regardless of what the republicans espouse, they will eventually have to raise taxes.

Most folks do not understand the difference between the trade deficit, budget deficit, current national debt and total national debt including all entitlement projections.

Upwards of a 100 trillion over the next couple of decades and don't count on China to continue financing our run away government. Contrary, it will be a useful tool to catapult themselves into the number one super power position when time is ripe.

We won't even mention any geopolitical circumstances that could potentially derail any attempt to get all this under control. Example- War in the middle east, choking off oil shipments, causing inflationary pressures via severe energy spikes.......you fill in the blanks.

Current and past members of Congress should be jailed for this monumental financial mismanagement. THIS IS A NATIONAL SECURITY ISSUE. They should be ashamed placing their own quest for power and money before the country of their birth.

Fasten your seat belts, it's gonna be a bumpy night.

66 posted on 02/19/2011 4:50:48 PM PST by servantboy777
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To: El Cid

First they (politicians) excessively tax (to redistribute income).

Then, they borrow.

Then, they have to print money, to give entitlement checks.

Then, Inflation hits.

Then, money is no longer a Store of Value...

Then, creditors (lenders, investors, depositors) don’t want to loan (with uncertain returned value, due to inflation).

Interest rates rise, to compensate for the uncertainty.

Credit markets are effectively destroyed. Those markets are (were) our only way to finance, vital, very long term, expensive producer goods and capital equipment (to improve our economic efficiency).

Then, there is a collapse of the efficient, productive prosperous market economy without a stable currency.

A flight into holding things of “real” value, a flight into real goods, begins.

We revert back to a very primitive economy for a while — barter, trading anything of immediate, practical value (roofing skills, car repair skills, eggs or produce from your backyard, commodities like rare metals, used car parts, etc.)

‘Thanks,’ Government & The Fed, for causing us to eat our ‘seed corn’ through destruction of the capital (credit) markets which began with the social-engineering idea that it would be “nice” to engage in massive, forced wealth-transfers via monetary expansion/instability and budget mismanagement for decades.

Now - we’re all poorer, and have no advanced economy.

I personally think things will get worse unless Congress can move some substantial changes. Until then,I plan to buy & hold things of real value - some gold, your home or some real estate, etc. I would “invest” in something that is local and more certain to be valued in my local community — start a small business, such as a Math tutoring center for children, a small farm, things like that.

No, I’m not kidding.


67 posted on 02/20/2011 9:28:22 AM PST by 4Liberty (88% of Americans are NON-UNION. We value honest, peaceful Free trade-NOT protectionist CARTELS)
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