Global economic crisis
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I've heard some investors say they were concerned about inflation due to the fall in the value of the US dollar and recent flight in oil prices back up to $68 a barrel. Gold has also had a big run up for the same reasons.
China is holding Trillions of dollars of US debt that will be devalued due to inflation if this trend continues. What doesn't make sense is that even though there is a world oil glut and lower industrial demand, China is driving up the price by buying at these higher levels to build huge oil reserves.
They have bought into the idea that this is a short recession which will end soon and they want to be ready so they can ramp their industries back up quickly. There must be some intelligent analysts in China that could see the benefit of suspending Chinese oil hording. It would be in China's best interests if inflation plummeted with oil prices again. They may have years of reduced industrial demand for oil and plenty of time to build their reserves when oil is cheaper after the current price bubble breaks.
China is holding Trillions of dollars of US debt that will be devalued due to inflation if this trend continues. What doesn't make sense is that even though there is a world oil glut and lower industrial demand, China is driving up the price by buying at these higher levels to build huge oil reserves.
They have bought into the idea that this is a short recession which will end soon and they want to be ready so they can ramp their industries back up quickly. There must be some intelligent analysts in China that could see the benefit of suspending Chinese oil hording. It would be in China's best interests if inflation plummeted with oil prices again. They may have years of reduced industrial demand for oil and plenty of time to build their reserves when oil is cheaper after the current price bubble breaks.
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cycloneye
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Re: Global economic crisis
One trader pushed the B button instead of the M one and there comes pandemonium. But also the Greece situation has many traders nervous.
http://www.cnbc.com/id/36988229
http://www.cnbc.com/id/36988229
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brunota2003
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The DOW dropped 127 points today.
The Dow Jones Industrial Average fell 126.82 points, or 1.24%, to 10066.57, the Standard & Poor's 500 sank 14.04 points, or 1.29%, to 1073.65 and the Nasdaq Composite lost 15.49 points, or 0.69%, to 2213.55. The FOX 50 dropped 8.82 points, or 1.11%, to 789.29.
There was no clear catalyst for the last-minute drop but it's clear the financial sector took the brunt of the selling. Wall Street closed near its worst level of the day as the tumbling banks and a sharply weaker euro overshadowed a stronger-than-expected housing report and enthusiasm for technology stocks.
Banking stocks "have been the lightning rod for the last 24 months and they continue to be the lightning rod, whether you like it or not. As the financials go, so go the rest of the market,” NYSE trader Ted Weisberg of Seaport Securities told FOX Business.
The afternoon slide was almost an exact reversal of the late-day burst of buying on Friday that lifted the markets sharply. Neither move had a clear catalyst, but reflected the volatility returning to the markets.
"Unfortunately that’s part of the new reality we’ve returned to,” said Michael James, senior equities trader at Wedbush Morgan Securities.
Monday's selloff drove the Dow closer to the psychologically-important 10000 threshold and to its lowest settle since Feb. 10. The benchmark index is now off 10.2% from its 2010 closing high of 11205. All but one of the 30 stocks that make up the Dow were stuck in reverse, led by financial giants JPMorgan Chase (JPM: 38.578, -1.482, -3.7%) and Bank of America (BAC: 15.41, -0.57, -3.57%). The index's best performers were Home Depot (HD: 33.21, 0.19, 0.58%) and Coca-Cola (KO: 51.46, -0.13, -0.25%).
While the markets did see more volatility, the extreme turbulence experienced last week eased somewhat as the Dow traded in a range of 144 points. That compares to wild swings of 280 and 375 points during the previous two sessions. The VIX, or the markets' so-called "fear gauge," closed 4% lower.
The DOW dropped 127 points today.
The Dow Jones Industrial Average fell 126.82 points, or 1.24%, to 10066.57, the Standard & Poor's 500 sank 14.04 points, or 1.29%, to 1073.65 and the Nasdaq Composite lost 15.49 points, or 0.69%, to 2213.55. The FOX 50 dropped 8.82 points, or 1.11%, to 789.29.
There was no clear catalyst for the last-minute drop but it's clear the financial sector took the brunt of the selling. Wall Street closed near its worst level of the day as the tumbling banks and a sharply weaker euro overshadowed a stronger-than-expected housing report and enthusiasm for technology stocks.
Banking stocks "have been the lightning rod for the last 24 months and they continue to be the lightning rod, whether you like it or not. As the financials go, so go the rest of the market,” NYSE trader Ted Weisberg of Seaport Securities told FOX Business.
The afternoon slide was almost an exact reversal of the late-day burst of buying on Friday that lifted the markets sharply. Neither move had a clear catalyst, but reflected the volatility returning to the markets.
"Unfortunately that’s part of the new reality we’ve returned to,” said Michael James, senior equities trader at Wedbush Morgan Securities.
Monday's selloff drove the Dow closer to the psychologically-important 10000 threshold and to its lowest settle since Feb. 10. The benchmark index is now off 10.2% from its 2010 closing high of 11205. All but one of the 30 stocks that make up the Dow were stuck in reverse, led by financial giants JPMorgan Chase (JPM: 38.578, -1.482, -3.7%) and Bank of America (BAC: 15.41, -0.57, -3.57%). The index's best performers were Home Depot (HD: 33.21, 0.19, 0.58%) and Coca-Cola (KO: 51.46, -0.13, -0.25%).
While the markets did see more volatility, the extreme turbulence experienced last week eased somewhat as the Dow traded in a range of 144 points. That compares to wild swings of 280 and 375 points during the previous two sessions. The VIX, or the markets' so-called "fear gauge," closed 4% lower.
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