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DOW -666 on Small Increase in Wages

FunnyMoney

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#1
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.
 
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nickndfl

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#2
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.
 

FunnyMoney

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#3
Profit taking on higher interest rates.....
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.
 

Usury

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#4
Markets fluctuate...up 30% since the election and now a couple down days -2% is a concern?
 

FunnyMoney

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

Usury

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#6
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.
 

FunnyMoney

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#8
FM, that has to be one of the most tin-foil-hatter theories I've ever heard...
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.
 

FunnyMoney

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#9
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.
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.
 

nickndfl

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#10
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.
*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.
 

FunnyMoney

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#11
-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?
 

D-FENZ

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#13
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.
 

D-FENZ

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#14
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...
 

FunnyMoney

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#15
Tax breaks for the rich. Inflationary budgets. Consumers and workers under pressure. Participation rate at all time lows.

The market finally wakes up to reality.
 

Krag

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#16
666 is an interesting number. 36 ! (factorial) equals 666. The so called demonic number has no rational basis to the Revelation reference, which was 616 in some manuscripts.
 

FunnyMoney

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#17
Different number today, -724.42 today on the DOW index following significant losses from earlier in the week.

We are in oversold conditions. After the last little scare we had, I predicted a return to the highs. Tech returned but the general market did not. This non-confirmation is I believe a very important indicator at this point. The participation rate is a problem and the markets are going to have to price in future consumer pain.

I'm expecting good new in the media tomorrow which should provide a rebound. But next week, unless there's relief for the consumer or some kind of dovish moves from the CBs, I see the downtrend to likely continue.
 

gringott

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#18
What goes up must come down.
Plus the owners must shear the sheep on a regular basis.
This market has been in the ludicrous mode for quite a while now.

Can someone point out another period in the history of this country with comparable interest rates? I can't seem to remember any.
I think the party is about over, perhaps look around for a chair before the music stops.
They have destroyed pensions, the capital of those who saved for and funded their own retirement, any capital investors who relied on return from invested capital. The baby boomer generation is being strip-mined, they, for the most part, won't be leaving any assets to the next generation when they move on. We are so far from "normal" it is amazing. When "normal" comes back there are going to be a lot of people and businesses go down.
 

FunnyMoney

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#19
The news came as I expected and it should have been seen as good news by Wall Street.

However, the DOW index could only stay up for short periods of time and spent most of the day slightly in the red. Heading toward the close, things got worse and the index is now down 424 points with about 5 min. to go.

Next week will be very interesting and so will April. If the trade war jargon heats up then I'm expecting more to the downside.

Gold on the other hand has moved up in price while the "safe haven" of USD hasn't proven to be such a safe haven during this market turmoil it's continued to remain very weak and is sitting at recent lows still. So much for MAGA.

I'm buying platinum and mostly gold here. I'm staying away from silver due to a potential global economic crash.