THE STOCKS HIT THE FAN!
THE STOCKS HIT THE FAN!
by
Sanford Pinna, M.D.
Copyright 2010
Everybody must have read Economic Rip Tide,
because, today, markets are crashing everywhere–
the Euro has fallen out of bed, and even Goody-Goody
Gold drop by almost fifty dollars an ounce!
Investors looked past Greece to Spain and
Portugal. They saw the millions of migrants milling
in the streets, unemployed, and wondered:
“Who the hell is going to pay the bills?”
Sovereign bonds of these nations dropped
like lead balloons.
Evidently, Obama did not hide the U.S.
unemployment figures well enough. It looks
like a million jobless employees were not
counted, in order to prove to the public
that the stimulus he passed on to his banker
friends, really produced some jobs.
But, instead, jobs were lost across
the country.
Asia, of course, still relies on the West.
This is a problem for their stocks, if not for
their employees.
Asian stocks are also dropping like
raindrops as the storm hits the economies
of the entire planet.
Bloomberg tells it this way
By Rita Nazareth and Gavin Serkin
Feb. 4 (Bloomberg) — Stocks plunged around the globe, with the MSCI World Index dropping the most in four months, and commodities tumbled on concern an unexpected increase in U.S. jobless claims and growing sovereign debt will derail the economic recovery. The euro slid to the lowest level since May.
The MSCI World Index of 23 developed markets sank 2.4 percent, the most since Oct. 1, while the Standard & Poor’s 500 Index fell 2.3 percent at 12:45 p.m. in New York and benchmark equity indexes for Portugal and Spain plummeted the most in 15 months. Oil lost 5 percent, the biggest drop in six months, and gold tumbled the most since 2008 as a stronger dollar diminished demand for commodities as an alternative investment. The euro sank 1 percent to $1.3745, the lowest since May 21.
U.S. equities add to the global slide as initial applications for unemployment insurance unexpectedly increased to 480,000 last week and companies from MasterCard Inc. to Monster Worldwide Inc. reported earnings that trailed analyst estimates. European shares extended earlier declines triggered when a disappointing Spanish bond auction added to concern some European nations will struggle to finance their budget deficits.
“Look at those initial claims,†said Diane Garnick, a New York-based investment strategist at Invesco Ltd., which manages $400 billion. “Unemployed people don’t spend money. That means the growth we’ve seen is not sustainable until people get jobs. Also, there are lots of uncertainties on a global basis. That’s certainly negative news for the market. I wouldn’t be surprised if we started to see dramatic increases in volatility again.â€Â
Stocks Sink
Retreating shares in the MSCI World outnumbered rising stocks by almost six to one, while only 22 companies in the S&P 500 advanced and all but one in the Dow Jones Industrial Average declined. Monster Worldwide Inc., which offers help-wanted advertisements on the Internet, plunged 19 percent in its biggest decline since 2002. MasterCard lost 9.4 percent, the most since May 2009.
Treasuries gained as investors fled to assets perceived as being the most safe, sending the yield on the benchmark 10-year note down seven basis points to 3.63 percent.
The rally in U.S. government debt came even as Nassim Nicholas Taleb, author of “The Black Swan,†said “every single human being†should bet U.S.
Treasury bonds will decline, citing the policies of Federal Reserve Chairman Ben S. Bernanke and the Obama administration.
* * *
This story is not a local story about the
U.S.
It is a story about a world economy that has
had its structure torn apart, and replaced with
lies from every government on the planet.
When the people realize what has happened,
most of these governments will disappear.
