Do u think stock market will crash again in 2020?
Its clearly not reflecting economic status
36-40, M
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Money is being poured into economies globally right now as "Stimulus" and that may hold the markets up as this money has to go someplace. It may be churlish of me to suggest that some countries have an agenda involving elections that motivate them.. But..............
So what you all have right now is reality suspended. As it is anyplace where you pump money into an economy without producing anything real. But reality WILL come knocking and the @$$ will fall out of the market sooner or matter.
Thank you for my Best Comment.. It is something I have been saying for some time, but I think this pandemic has pushed the whole thing well over the edge.馃樂
So what you all have right now is reality suspended. As it is anyplace where you pump money into an economy without producing anything real. But reality WILL come knocking and the @$$ will fall out of the market sooner or matter.
Thank you for my Best Comment.. It is something I have been saying for some time, but I think this pandemic has pushed the whole thing well over the edge.馃樂
Firstnlastlove 路 36-40, M
@whowasthatmaskedman thats what i think too.. and its unbeleivable the way the market behaving
The fed has set interest rates so low they are near zero. That encourages reckless bubbles and binges of borrowing. This near interest-free lending is encouraging non-financial companies to go deeper and deeper into riskier debt ($6.8 trillion and surging).
Fed Chairman, Jerome H. Powell, has chosen to instill "confidence" in the stock markets and credit markets by injecting trillions of dollars into the financial system to reassure the Wall Street speculators that the Covid-19 pandemic won't crash the money markets into chaos and bankruptcies.
[i]The Financial Services Modernization Act of 1999[/i], signed into law by President Bill Clinton in November 1999, repealed large parts of the Glass-Steagall Act, which had separated commercial and investment banking since 1933. That was very unwise and led to the 2008 sub-prime mortgage crash.
Congress has backed away from imposing any meaningful oversight and regulation of the financial industry. The Wall Street swindlers, hedge fund managers, and other rascals were bailed out in 2008-9 for the huge mess they created with credit default swaps, CDO's and other chicanery, with no accountability. It worked out so well for them, they are sure to pull another financial flim-flam scheme in the not too distant future.
Fed Chairman, Jerome H. Powell, has chosen to instill "confidence" in the stock markets and credit markets by injecting trillions of dollars into the financial system to reassure the Wall Street speculators that the Covid-19 pandemic won't crash the money markets into chaos and bankruptcies.
[i]The Financial Services Modernization Act of 1999[/i], signed into law by President Bill Clinton in November 1999, repealed large parts of the Glass-Steagall Act, which had separated commercial and investment banking since 1933. That was very unwise and led to the 2008 sub-prime mortgage crash.
Congress has backed away from imposing any meaningful oversight and regulation of the financial industry. The Wall Street swindlers, hedge fund managers, and other rascals were bailed out in 2008-9 for the huge mess they created with credit default swaps, CDO's and other chicanery, with no accountability. It worked out so well for them, they are sure to pull another financial flim-flam scheme in the not too distant future.
Firstnlastlove 路 36-40, M
@badminton agreed sir!
whowasthatmaskedman 路 70-79, M
@badminton Essentailly, what you just said is that the American financial sysyem is now running on empty and printing monopoly money. which only works in the game. Up to now most places have been going along with the game. But we both know the cracks are appearing.
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Shannon27 路 M
I don't think it will crash but I do believe we will have another significant dip in the market before the year is over. People are not spending their money. The government can not keep giving bail outs to companies and individuals. I think the republicans will try to hold it off until after the November elections to help themselves at the polls.
Firstnlastlove 路 36-40, M
@hartfire yes thats seems true.. a V shaped recovery or the one like 2008 crisis seems unlikely
@Firstnlastlove Impossible.
V shaped recoveries can only happen when consumers need money to spend.
With so many losing their jobs due to Covid shutdowns, large numbers will be unable to pay rent or mortgages and kicked out on the streets.
To halt the spread of the virus in second wave hotspots, shut downs are the only way - otherwise the pandemic takes off exponentially (ie, far worse than we've seen it thus far).
The second waves are proving more infectious and affecting younger people (children and workers). Even with the recent upgrades to facilities, hospitals are again being over-run. Health workers are dying and now in short supply in hotspot areas.
Despite first and second waves, this is still only the start of this pandemic.
By the time we achieve a safe and effective vaccine, or medications to reduce the effects of symptoms, every country's economy will be in serious trouble.
Since the trade is so globalised and interdependent, this crash will affect everyone.
V shaped recoveries can only happen when consumers need money to spend.
With so many losing their jobs due to Covid shutdowns, large numbers will be unable to pay rent or mortgages and kicked out on the streets.
To halt the spread of the virus in second wave hotspots, shut downs are the only way - otherwise the pandemic takes off exponentially (ie, far worse than we've seen it thus far).
The second waves are proving more infectious and affecting younger people (children and workers). Even with the recent upgrades to facilities, hospitals are again being over-run. Health workers are dying and now in short supply in hotspot areas.
Despite first and second waves, this is still only the start of this pandemic.
By the time we achieve a safe and effective vaccine, or medications to reduce the effects of symptoms, every country's economy will be in serious trouble.
Since the trade is so globalised and interdependent, this crash will affect everyone.
