We are in a slow motion Crash!

[luckyluciano]

Quote from blowingup2012:

As I have discussed in many past posts, I believe the primary factors are the incredibly dangerous and reckless actions of the goofy private central bankers who control the US fiat dollar, the bureaucrats at the Federal Reserve.

Whenever the wizards at the Fed run the proverbial printing presses to create more fiat dollars out of thin air, those inflationary dollars have to seek out a new home and a great deal of them begin bidding competitively on the already overvalued US equity markets. It is no coincidence that the S&P 500 bubble really ignited after the Fed began aggressively goosing US money supplies in 2009.

Explain this to me. How is is that Most blue chips trading between 10-20 P/E ratios and you are calling this a bubble?

I understand you are not happy with the world government monetary system but what does this have to do with corporations being profitable?

Are you expecting P/E ratios of 5-10?

 

[rockefehler]

It's just a Pavlov response to the huge 2008 drop. The primitive human expects and wants a repetition of that, no matter what the facts (P/E's etc) are.

Now, I agree with him that central banks play a VERY dangerous game ... only the real blowup will be far away in the future.

 

[logic_man]

The other problem with the idea of a "slow motion crash" is that empirical evidence shows that declines are faster than rises in financial markets. That's why they say markets "take the escalator up and the elevator down".

A "slow motion crash" is a contradiction in terms.

 

[tenthousandmen]

Quote from blowingup2012:

Haha, an old trick, but how will that work if I find amusement from your posts rather then offense?

http://twitter.com/#!/nodoji

 

[Lucrum]

Quote from blowingup2012:

I fully realize that "crash" is a very strong word full of all kinds of very definite connotations, but I really can't think of any other way to articulate what is happening in the mighty flagship US equity index other than calling it a "slow-motion crash."

Have you ever witnessed a real equity market crash, in real time in front of a monitor with real time quotes?

 

[bwolinsky]

Quote from logic_man:

The other problem with the idea of a "slow motion crash" is that empirical evidence shows that declines are faster than rises in financial markets. That's why they say markets "take the escalator up and the elevator down".

A "slow motion crash" is a contradiction in terms.

I've already written elsewhere that slow to rise, faster to fall is due to geometric weighting.

 

[logic_man]

Quote from bwolinsky:

I've already written elsewhere that slow to rise, faster to fall is due to geometric weighting.

I'm not familiar enough with your entire oeuvre to cite your pronouncements correctly, so you'll excuse me if I don't try.

 

[PiggyBank]

dude, there are no "slow motion" crashes.

 

[ElCubano]

Quote from Lucrum:

Have you ever witnessed a real equity market crash, in real time in front of a monitor with real time quotes?

2000, 08 and Flash crash. I was short BSC at 66 or so and closed position as it vaporized....i believe it was a fri or mon....made little in comparison to what I could have made had I gone to the bathroom to take a dump

 

[denner]

Crude Oil in 2008 was a slow motion crash.

I think it was twice as lethal because it was such an orderly decline that a bunch of people were convinced the "bottom" was just about every single day.

I still remember EMR Global jumping all over himself to declare how long he was for the entire decline.