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DOW -666 on Small Increase in Wages

Discussion in 'Historic Market Crashes' started by FunnyMoney, Feb 3, 2018.



  1. FunnyMoney

    FunnyMoney Silver Member Silver Miner

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    The dow dropped 665.75 on Friday, the first really big one day drop in a very long time. The market has pulled back from big gains that were seen over the last 3 weeks.

    Some believe the pull back was due to the very good jobs report that came out on Friday which said there was finally a slight uptick in wages paid to workers recently after many years and even decades of real wage losses when inflation and costs of living are taken into account.

    Wealthy stock owners are not keen on improving the condition of workers and any additional crumbs, like the recent tax bill and this latest jobs report, which may provide them to workers, is seen as market negative.

    My thinking is the crumbs are extremely small in both of these cases and the market has greatly over-reacted to the good news for workers. My thinking is inflation is still quite under control where market perspectives are concerned, the dollar won't be heading back to 70 quickly, worker wages will increase only at a snail's pace if at all anymore, and the market will resume this move, a move which some may consider parabolic. <- see link to vote an opinion on the recent market's strength.
     
    Last edited: Feb 3, 2018
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  2. nickndfl

    nickndfl Midas Member Midas Member Site Supporter ++

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    Profit taking on higher interest rates. The market literally went straight up 8,000 points since Trump was elected. It won't go to 100,000 this year like some Bitcoin advocates believe. That isn't doing so hot either and gold got slammed too.

    It's interest rates.
     
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  3. FunnyMoney

    FunnyMoney Silver Member Silver Miner

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    Interest rates are at historic lows and the pace of the increases in rates is extremely slow. If these small moves at these extremely low levels is what's behind this pullback then we're in big trouble.

    We are in big trouble. Markets overseas are down a lot right now as I write this. The FED hasn't reduced the balance sheet since they said they would hardly at all. I don't think they've reduced it more than a single percentage point. How are they going to reduce it when the gov't is deeply in the red?

    Will they protect the dollar or will they protect the stock market? Can they figure out a way to protect them both? They probably can, it is a global game. But there is an historic crash coming and that's why this thread is in this board. My thinking is we're still not there, but I'm not selling any gold either.
     
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  4. Usury

    Usury Platinum Bling Platinum Bling

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    Markets fluctuate...up 30% since the election and now a couple down days -2% is a concern?
     
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  5. FunnyMoney

    FunnyMoney Silver Member Silver Miner

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    It's only a concern if wages continue to rise. Those profits to the people were intended for TPTB, not the workers. It was this news which triggered the 666 drop. If this is going to be the trend, then everything must come to a halt until that's been fixed and redirected appropriately.
     
  6. Usury

    Usury Platinum Bling Platinum Bling

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    FM, that has to be one of the most tin-foil-hatter theories I've ever heard. Stocks are down because workers taxes are being cut? Whaaaaat? That makes absolutely zero sense to me. If anything it will give workers more disposable income to spend on products and services being produced, so I'd see more upside potential.
     
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  7. Krag

    Krag Planet earth Platinum Bling

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  8. FunnyMoney

    FunnyMoney Silver Member Silver Miner

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    I know. Amazing isn't it?

    But this was not an original opinion of mine. This is what they said on MSM. Well, not exactly...

    The way they spun it was "increasing pay for the workers could lead to higher inflation and higher interest rates down the road which scares the market."

    I am guilty for adding the part, "those increasing pays were intended to go to CEOs and the elite, not the average worker" just as they have been for the last several decades.

    While I'm guilty of that "extra spin" if you examine the 2 statements carefully, aren't they in the end, the same thing, or at least in line with each other?

    Thanks for you post, I think it helps the discussion.
     
  9. FunnyMoney

    FunnyMoney Silver Member Silver Miner

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    Too much sarcasm. What I'm really trying to say here is I don't think those small increases in wages are going to push the FED into raising more aggressively or hurt TPTB and their elite underlings and CEOs very much - so in light of that, I think upward moves to new highs are likely.

    I don't believe the public is fully invested yet worldwide and this appears to be a global move.
     
  10. nickndfl

    nickndfl Midas Member Midas Member Site Supporter ++

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    *Future interest rates are forecast higher. Do not expect their rise to remain at the same rate or frequency either. The uncertainty caused a buying opportunity in the market.
     
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  11. FunnyMoney

    FunnyMoney Silver Member Silver Miner

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    -1033 on the DOW

    Gold and Silver ending flat for the day. In 2008 both gold and silver came down a whole lot, maybe this time will be different?
     
  12. the_shootist

    the_shootist The war is here on our doorstep! Midas Member Site Supporter ++

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  13. D-FENZ

    D-FENZ Gold Member Gold Chaser Site Supporter ++

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    Talking heads pretend like they know what they're talking about when markets move like this, but they don't. It has everything to do with human emotions- fear and greed- and little to nothing to do with what they say.
     
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  14. D-FENZ

    D-FENZ Gold Member Gold Chaser Site Supporter ++

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    Now the narrative from the talking heads is that the markets have corrected 10%- the technical definition of a 'healthy' correction. Now the sheep can sleep in peace knowing markets will continue skyward.

    We'll see...
     
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