Is the Sky Falling?

Quote from J.Joseph:

Read Rome's history, as well as Greece and possibly even Babylon. They, along with America, have the eagle as their national symbol and were, in their day, world super-powers. They all have the same history. And we're tracking right along like a storybook.

In short, 200+ years of democracy, a period of industrialization, shrinking number of farmers doing more and more food production, rising welfare and free entertainment for the masses who live in the cities. To handle this, taxes went way up. The military anexed many parts of the world, and, when their forces were spread too thin and the people could not pay enough taxes to handle the rising debt, foreign troops came in and attacked the world's most powerful nation in it's weakest and most vulnerable state. So, what's going to save us you ask?

It was at that time in Rome's history that a Caesar took over. He loved the country and restored it to its peak and beyond. But the people became so dependent upon his leadership that, when he had done what he set out to do and restored Rome's glory, he was unable to get the people to stand on their own two feet again. They had grown to love being spoon-fed which forced a second caesar instead of the reinstitution of democracy. And the next caesar was more in love with power than the nation. And the next, moreso until their greed caused Rome to crumble and cease to be a superpower.

If it is the big one, you can expect unemployment to go much higher. After that, the government will no longer be in control. Not because they won't be in power, but because the state of our country will be so desperate that their decisions will be forced. No matter what they say or promise, they will have to raise taxes well above 50% to support the more-than-50% of the population that will be employed.
At this time, other nations will take advantage of our temporary weakness and attack, and succeed. Then taxes will go up again to support the already too widely spread military. When that doesn't work, then you can expect marshal law and a "lifetime president" to follow.

I don't know if the sky is falling. But when it does fall, the latter half of Rome's history will be the latter half of ours.
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Good post. He who knows history knows the future.
 
1. wars (creditor nations been slaughtered)
2. let banks fail (fed banks close, governments shut down).
3. confiscate all wealth from public through taxation, socialism, and inflation.

I think option 3 is the most likely outcome, public has been screwed throughout history, this time is no exception.
 
Quote from Covertibility:

I'd bet S&P downgrades U.S. debt after the close tomorrow.
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Buy the news. Could these past few days be anticipation for this downgrade?!? Stay tuned...
 
Quote from Random.Capital:

If we go under 10k, then it may be time to ask that question. Until then, this looks like a pretty normal pullback.
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Not sure how you define "normal". I'd agree if you were talking about the markets pre-2003 or so, but you have to remember we literally went 4+ years at one point without a 2% down close to close. Of course, by 2007-08 all hell broke loose and volatility returned with vengeance.

Managed markets seem to have a way of shocking the hell out of the system when people least expect it.
 
Managed markets lead to bigger blowups, IMO.

But I don't see any attempt OT manage equity markets - it's the debt markets that has leadership running in circles.

IMO, etc.
 
Quote from Random.Capital:

Managed markets lead to bigger blowups, IMO.

But I don't see any attempt OT manage equity markets - it's the debt markets that has leadership running in circles.

IMO, etc.
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The equity markets are managed by the govt in blatant and subvert ways.

Blatant management:
- Cutting fed funds target down to 0-0.25% from just over 5% interest rate causes the relative stock earnings yields to be worth more.
- QE 1, & 2. Both of these events caused a rally, arguably to the negative effect these developments had on the dollar. Since 40% of the S&P's earnings are generated abroad, a weak dollar has a positive effect for US- based multinationals.
- Etc, many other ways too numerous to list. Read "The Myth of the Free Market: The Role of the State in a Capitalist Economy"

Subvert management:
- Presidents working group on the financial markets, aka the "plunge protection team". It's real and it exists folks. etc.
 
Here we go again. Down 100+. Jobs report an uptick but below seasonal average.
Interesting though that the SPY RSI is almost @ 0.
 
Dow up 100+ didnt hold.

Nobody is fooled anymore.

They know the true job data is smoke. Jobs gained my ass, it's more like 99ers falling off the report.
 
Finally, a tape reflecting reality. Fed and Wall St. knotheads will soon hit the panic switch. Prices haven't even gone on sale yet, as the smoke rises from the devastation to come. Heavy distribution as J Q Public gets screwed again.
 
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