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A bounce into the close, but Europe finishes sharply lower

Comments (21)
  • Gary Jakacky
    , contributor
    Comments (2507) | Send Message
     
    Close your eyes, click your heels together three times, and say, "no one cares about Europe! No one cares about Europe! No one cares about Europe."
    10 Jul, 12:35 PM Reply Like
  • Michael Clark
    , contributor
    Comments (8657) | Send Message
     
    Gary, I'm with you if you are saying "don't look while the Nazis reappear" -- and that we should care about Europe.

     

    Or are you really saying: "We're making money here! Let's stick our head in the sand and have a celebration...!"?

     

    The world is burning. The head in the sand trick isn't going to work for long, no matter how well our own stock market is rigged by the Money Printers.
    11 Jul, 01:09 AM Reply Like
  • James Bjorkman
    , contributor
    Comments (668) | Send Message
     
    If the Euro banks are cooking the books, that could be what finally brings a heavy dose of reality to global markets. When you see one cockroach....
    10 Jul, 01:06 PM Reply Like
  • Ian Farbrother
    , contributor
    Comments (200) | Send Message
     
    The ECB's Asset Quality Review (AQR) is coming up in a couple of months. Banks have been preparing for this all year. *Very* unlikely that there is any *widespread* cooking of books at this point!
    10 Jul, 05:05 PM Reply Like
  • Macro Investor
    , contributor
    Comments (9032) | Send Message
     
    Come on! Let the bears dream at least for a day!
    10 Jul, 05:25 PM Reply Like
  • James Bjorkman
    , contributor
    Comments (668) | Send Message
     
    I completely agree, exceedingly unlikely. However, on the off chance that any other banks are caught anywhere in Europe in the near future doing anything similar - that will have more consequences than a one-day sell-off.
    10 Jul, 05:57 PM Reply Like
  • James Bjorkman
    , contributor
    Comments (668) | Send Message
     
    I'm not a bear, am fully invested, and would not be helped by a market collapse. I'm also not complacent. Are you?
    10 Jul, 05:58 PM Reply Like
  • Macro Investor
    , contributor
    Comments (9032) | Send Message
     
    I have puts.
    10 Jul, 06:29 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11108) | Send Message
     
    LOL everyone knows about the cockroaches. We are now just waiting for the plague.
    11 Jul, 12:48 AM Reply Like
  • Macro Investor
    , contributor
    Comments (9032) | Send Message
     
    How many years have you ben waiting for the plague? What if you throw a massive plague party and no one comes?
    11 Jul, 12:50 AM Reply Like
  • Michael Clark
    , contributor
    Comments (8657) | Send Message
     
    Yes. The plague begins in Europe. And then spreads all around the world. Like it did 72 years ago.
    11 Jul, 01:11 AM Reply Like
  • Michael Clark
    , contributor
    Comments (8657) | Send Message
     
    Myopia is a kind of plague also, Macro. We've been having a Plague Party on Wall Street for many years. The Fed takes taxpayer money and gives it to the rich on Wall Street; they take on more debt and buy up their own shares, driving up the price of the stock, and driving up earnings per share by retiring shares from circulation, and revenues collapse. It is a race to zero. Can they retire shares faster than run out of buyers. Each time they retire more shares, they go deeper into debt -- but that isn't there concern, that's the concern of those pension funds silly enough to buy their bonds. Each time they buy more shares, prices go up (they are the only buyers), EPS goes up, as earnings go down. It's a wonderful magic trick. In the mean time, investors take on more and more debt, to buy more stock and to buy food, clothing, pay rent, pay their mortgage. The race to the bottom is guaranteed to be tragic, in the end. But the Plague Party enables the very rich to make a final killing and escape (somewhere) by the time the Plague actually settles in. Debt, which nearly killed us in 2008, is 15% greater today than then. No wonder you are celebrating so. The Fed has fixed the stock market. But debt goes up and up. What happens when the Fed can't fix the stock market any longer? When the trillions they have spent to simulate a wealth bubble starts to cost more to service than they can afford? Or are we just going to continue lying and printing more money until we're all dead?
    11 Jul, 01:18 AM Reply Like
  • Macro Investor
    , contributor
    Comments (9032) | Send Message
     
    Well Michael, we can always go the path the ECB took, insist on balanced budgets in the middle of the Great Recession, and get 20-30% unemploymenbt.
    11 Jul, 09:36 AM Reply Like
  • Macro Investor
    , contributor
    Comments (9032) | Send Message
     
    The rapid snapback today shows how many people have been waiting for a correction to deploy money. Hee hee.
    10 Jul, 02:33 PM Reply Like
  • Michael Clark
    , contributor
    Comments (8657) | Send Message
     
    Until the Fed loses control of low interest rates. When does the massive unwind begin?
    11 Jul, 01:19 AM Reply Like
  • Macro Investor
    , contributor
    Comments (9032) | Send Message
     
    There may be no unwind at all. Fed may just hold the bonds to term.
    11 Jul, 09:37 AM Reply Like
  • TraderzOracle
    , contributor
    Comments (21) | Send Message
     
    This market is too predictable. Buy the dip, sell the rip.
    10 Jul, 03:01 PM Reply Like
  • TS Nelson
    , contributor
    Comments (368) | Send Message
     
    With QE still in place and interest rates at rock bottom any drop will just be perceived as a buying opportunity and hence turn into a dip rather than the correction everybody is expecting.
    10 Jul, 03:03 PM Reply Like
  • jstratt
    , contributor
    Comments (2317) | Send Message
     
    Interesting with less than a 1% loss this morning every bear wanted to comment on CNBC. Today there was actually news to process...

     

    1) Fed minutes discuss end of QE process
    2) World economic data poor in Europe and China
    3) Euro bank concerns

     

    I didnt find any reason to buy or sell today. But I do think Europe may have to stimulate more rather than expect the US to carry the ball worldwide.

     

    If you are a trader some dip could occur as QE ends but investors should stay the course. I still see positive earnings ahead with few estimate reductions.

     

    Bank issue not worth mentioning at this time.
    10 Jul, 04:03 PM Reply Like
  • Michael Clark
    , contributor
    Comments (8657) | Send Message
     
    Europe will not do QE because Europeans know that QE is a massive wealth transfer from the citizens to the banks. And it is not politically acceptable, unlike in America, where stealing money for the rich seems to be quite acceptable. Wel all like to be on the winning side. Even if the winning side caused huge losses for everyone but themselves. It's a nice job, a nice life, if you can get it.
    11 Jul, 01:23 AM Reply Like
  • Macro Investor
    , contributor
    Comments (9032) | Send Message
     
    Europeans would rather have massive 20-30% unemployment, eh?
    11 Jul, 09:38 AM Reply Like
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