market selloff

[madhatter]

http://silverunderground.com/2011/09/wi ... -hegemony/

"A 2009 U.S. State Department internal cable from the Embassy in Beijing recently released by Wikileaks illustrates my point perfectly. The cable describes China’s plan to undermine the U.S. Dollar hegemony by increasing China’s gold reserves.

From 2003 to 2008 China increased their gold reserves from 600 tonnes to 1054 tonnes by converting roughly $11 billion of USD reserves to gold. The average price of gold during that 5 year period was $677/oz. Renowned gold forecaster Julian D. W. Phillips has predicted that China intends to increase it’s reserves to 5000 tonnes by 2013. If gold stays the price it is today (yeah right), which is $1800/oz, that’s roughly $250 billion of USD reserves."

http://silverunderground.com/2012/11/ch ... -currency/

"It was over a year ago that we reported on leaked US State Department internal cable from the Embassy in Beiging released by Wikileaks describing China’s plan to undermine the US Dollar hegemony by increasing China’s gold reserves. From 2003 to 2009 China increased their gold reserves from 600 tonnes to 1054 tonnes by converting roughly $11 billion of USD reserves to gold. That’s the last time any official numbers have come out of China, but between discrepancies in reported imports, domestic production, and the fact that China does not allow gold exports, it’s estimated they could increase its reserves to 5000 tonnes by 2013.

According to the leaked cable this increase in China’s gold reserves was intended in part to strengthen the Chinese currency, the Renminbi, so that it can begin to replace the declining USD as the world reserve currency. But some recent rumblings indicate China may be launching a gold backed global currency.

This story may belong in the TinFoil Tuesday category more than the Money Monday category, because the sites where I’m finding the story all track back to an article at BeforeItsNews.com which also contains Biblical prophecy concerning the Obama administration. According to them China has been recasting their gold reserves, currently in 12.4 kg (400 troy ounces) bars into smaller 1 kg (32 troy ounces) bars, to lay the foundation for a new gold backed global currency. Keep in mind, 1 kg is not a viable denomination for everyday commerce, but it could be used for a new banking reserve system if they were to issue notes backed by those bars. Even if the speculation and analysis from the story lack credibility, recasting smaller denominations means greater liquidity, even at the investment level. So, even if the end goal isn’t a gold backed currency, but merely a new banking reserve system, such a move could still dramatically shift global trade and banking away from the US Dollar.

As an interesting side note, melting down and recasting the standard Good Delivery bars bought from London, New York, and Switzerland is probably the most certain way to audit the purity of the bars themselves. We reported recently that a number of 10 ounce bars filled with tungsten were discovered in New York after jewelers melted them down. Tungsten is almost the same weight as gold, but costs about a dollar an ounce. If China were to discover one of these 12.4 kg internationally traded bars of gold that had been salted with tungsten it could trigger a massive audit of the entire world’s gold reserves, and an investigation into whichever government or central bank at defrauded the market."

now why would they do that when they can just hold the USD as reserves? ya can print more gold too right?

[Guy in Shorts]

A more interesting story than a one day snapshot of market performance.

Composite S&P 500 Percentage Performance (by term):

Short term market swings are all about psychology. Sure Wall Street is unhappy - one of their own lost the election. I am glad they are unhappy. Long term market swings are much more meaningful. That is a very meaningful chart you posted, Cityskier!

Voted for the man that I thought would do best for my 401K and the economy. If your guy can pull a repeat and grow the S&P500 62% over the next 4 years I will become a believer also. I am rooting hard for him to succeed.

[madhatter]

A more interesting story than a one day snapshot of market performance.

Composite S&P 500 Percentage Performance (by term):

Short term market swings are all about psychology. Sure Wall Street is unhappy - one of their own lost the election. I am glad they are unhappy. Long term market swings are much more meaningful. That is a very meaningful chart you posted, Cityskier!

Voted for the man that I thought would do best for my 401K and the economy. If your guy can pull a repeat and grow the S&P500 62% over the next 4 years I will become a believer also. I am rooting hard for him to succeed.

that 62% is great IF you had zero stake prior to then, otherwise you are way down from where you were in 07 in terms of dollars. In terms of gold you have suffered a catastrophic loss. I've covered this numerous times on Kzone and the info is readily available. the loose interpretation is 2007 DOW 14k+, gold @ 700USD/oz, 2012 DOW 12767.50 ( and sliding into today;s close) gold 1724.95


gold doesn't gain value, the unit of currency used to purchase gold loses value and thus more of it is required.

and another day of the great clown slide goes into the books...

[madhatter]

madhatter says time is running out to find that safe haven, but oh where to go and and when

"On September 13, 2012, after announcement of further quantitative easing by the Federal Reserve, the index broke above an intraday high of 13,573.33 and a close of 13,539.86, the highest levels reached since December 26, 2007."

Down 789.86 points in the last two months, we'll call it 790. only 6-7 weeks til that fiscal cliff hits, what could go wrong? careful not to catch a falling knife...

[madhatter]

oooh another day and the great clown slide continues on, down 85 points so far today

REAP IT, BITCHEZ!!!


HA HA HA

[madhatter]

another 186pts to the downside today as the great clown slide continues, havin' fun yet? 969.86 since September, will we go for 1k plus tomorrow?


mmm, mmm , mmm , Barack Hussein Obama, good luck w yer agenda clown, plan on a recession in the next 6 mos or sooner, commodity inflation and asset deflation all at once. stupid f@ckin obama supporters....

Au and Ag in the back yard, Pb in the house....



enjoy the bread and circus

[madhatter]

Deer Emerges As Stocks Slump Half Way To Reality

http://www.zerohedge.com/news/2012-11-1 ... ay-reality



but, but, but I won...where y'all goin' w yer money?

[Rime & Reason]

Oh, Maddie! Why are you getting your panties in a bunch? When the market goes down it just means it is time to buy. Maybe that is why your portfolio is flat. Don't know how to play the game? Buy low and sell high. Simple.

It is not even a correction until we are down 10%, and corrections happen all the time. Relax. You lost the election. Try not to lose any more of your mind.

[madhatter]

Oh, Maddie! Why are you getting your panties in a bunch? When the market goes down it just means it is time to buy. Maybe that is why your portfolio is flat. Don't know how to play the game? Buy low and sell high. Simple.

It is not even a correction until we are down 10%, and corrections happen all the time. Relax. You lost the election. Try not to lose any more of your mind.

catch a falling knife

[madhatter]

Guest Post: The FHA Is Blowing Up: Bad News For The Housing Market

http://www.zerohedge.com/news/2012-11-1 ... ing-market

"This is a big deal. The FHA is already in trouble despite a miraculous “housing recovery” and we haven’t even hit a severe cyclical economic slowdown yet, which is almost certain to occur in 2013. What shambles do you think the housing market will be in once that happens and the last backstop to housing is broke? You can kiss this “housing recovery” goodbye. I think home prices nationally could fall 25%+ from here."


anybody catchin' on to the reality of where we are yet?

[madhatter]

more red arrows today, but hey not too bad right? only 33pts, and not every major index is in correction territory.

What Really Happened When Lehman Failed... and Why a Spanish Default Will Be Exponentially Worse

http://www.zerohedge.com/contributed/20 ... l-be-expon

The madhatter will refrain from laughing at the unfortunate today...

[madhatter]

The Witching Hour

http://www.zerohedge.com/news/2012-11-16/witching-hour

"one could easily argue that the critical 1350 level for S&P 500 options held up the market yesterday such that the removal of such a protective barrier could reengage the aggressive selling from the past two weeks."

meanwhile conflict escalation in the mid-east ( becoming very serious ) is bound to drive oil prices higher despite the flat prices currently seen largely due to fears of economic contraction.


and the market opens down again today...

[XtremeJibber2001]

Zerohedge - a group of news editors that collectively author stories under the name of Tyler Durden, from the fight club novel.

[madhatter]

Zerohedge - a group of news editors that collectively author stories under the name of Tyler Durden, from the fight club novel.

ZH quite often is way ahead of the MSM and other internet sources when it comes to breaking news, especially economic related news. Of course there are quite a number of widely differing views and opinions ,and like all news sources its up to the reader to decide just how much stock to place in the written word, nonetheless scan the ZH headlines daily and see how often they end up in the MSM in the following days/weeks. As far as the Tyler Durden thing, the stuff is often submitted to ZH under the moniker, but most often the articles are from other sources w links to the original article.

[madhatter]

Today's "Fiscal Cliff Compromise" Moment Brought To You By The Congressional Short Squeeze Inception Team

"Once again the market falls for the politicians' snake oil (as we explained before). Unconvinced? This is what none other than "Fiscal Cliff compromise is imminent" photo op participant Nancy Pelosi said moments later to the WSJ:

Ms. Pelosi said. "I was focusing on how we send a message of confidence to consumers, to the markets in the short run, too."

And there you have it from the horse's mouth: absolutely nothing of actual substance in today's presser which was completely hollow of anything remotely resembling an actual compromise, but merely the same type of Euro-propaganda we have grown to loath and despise for the past 3 years, where a flashing red headline was supposed to generate a short squeeze. It succeeded."

Lots of oscillation heading into the close, will it stay green?