Dow tumbles more than 800 points. How ugly will this get?

[C1]

Here's Your Safety, Take it! (Article from YAHOO)

In its never ending bid to protect investors, the Securities and Exchange Commission (SEC) sometimes punches them in the face. (Whether these blows are completely intended or subtly inadvertent is the reader's choice to decide.)

Look no further than the SEC's latest 4-1 vote to restrict investors from redeeming their money inside money market funds. Feel free to re-read the previous sentence to make sure your eyes aren't playing games with you.

Under the rule, should your money market fund's NAV fall below $1 or should the fund's board decide to suddenly liquidate the fund, the fund company has the right to suspend redemptions. In other words, the liquidity you expect from your money market funds can go instantly go away. How about that for causing a run on money market funds! Should another financial crisis erupt, mayhem is likely to ensue in one of the quietest and most boring corners of the investment universe. This could make 2007-08's financial crisis look like a cakewalk.

What is the SEC's response to all of this? They state, 'We understand that suspending redemptions may impose hardships on investors who rely on their ability to redeem shares.'

No doubt, the SEC's latest gaffe will re-invigorate our generation to become like previous ones; money mattress stuffers. Who can blame them?


https://www.zerohedge.com/article/s...ec-approves-new-money-market-regulation-4-1-v


US Debt Visualized in $100 Bills
http://demonocracy.info/infographics/usa/us_debt/us_debt.html

Boys use worthless banknotes for arts and crafts. 1923.

 

[bbhaag]

I'm planning on living that long. I'm certainly not planning my retirement account to only last 7-10yrs, running out of money, and eating cat food in a low rent apt until I croak.

I certainly don't want you or anyone running out of money after retirement and then with no options left you have to eat cat food for the rest of your days.

I agree with you that sound financial planning should allocate enough money to live comfortably beyond the 7-10 year mark after retirement. What I don't agree with is having a healthy percentage of your asset allocations in higher risk investments once you reach retirement age. It's ok to have some of your wealth tied up in riskier investments but my point is if you have to much of it tied up in those risky investments and then the bottom falls out you're still going to be left eating cat food in a shitty apartment until you croak.

 

[alien42]

I certainly don't want you or anyone running out of money after retirement and then with no options left you have to eat cat food for the rest of your days.

I agree with you that sound financial planning should allocate enough money to live comfortably beyond the 7-10 year mark after retirement. What I don't agree with is having a healthy percentage of your asset allocations in higher risk investments once you reach retirement age. It's ok to have some of your wealth tied up in riskier investments but my point is if you have to much of it tied up in those risky investments and then the bottom falls out you're still going to be left eating cat food in a shitty apartment until you croak.

What you seem to have no grasp of, is that a large percentage of Americans have no retirement funds. You can blame them all you want, but it's the reality of the working poor.

 

[bbhaag]

What you seem to have no grasp of, is that a large percentage of Americans have no retirement funds. You can blame them all you want, but it's the reality of the working poor.

How does this even relate to what I was talking about? Everyone I responded to has some form of retirement planning in place or at least they led on that they do.
Were did you even come up with what you posted? Stop putting words in my mouth. At no point did I bring up the fact that roughly 25% of Americans have no retirement savings in place. That's an entirely different topic that I wasn't even addressing.

 

[alien42]

How does this even relate to what I was talking about? Everyone I responded to has some form of retirement planning in place or at least they led on that they do.
Were did you even come up with what you posted? Stop putting words in my mouth. At no point did I bring up the fact that roughly 25% of Americans have no retirement savings in place. That's an entirely different topic that I wasn't even addressing.

no one put words in your mouth but yourself and your "greater than thou" attitude shines through in all of your posts.

 

[fskimospy]

Here's Your Safety, Take it! (Article from YAHOO)

In its never ending bid to protect investors, the Securities and Exchange Commission (SEC) sometimes punches them in the face. (Whether these blows are completely intended or subtly inadvertent is the reader's choice to decide.)

Look no further than the SEC's latest 4-1 vote to restrict investors from redeeming their money inside money market funds. Feel free to re-read the previous sentence to make sure your eyes aren't playing games with you.

Under the rule, should your money market fund's NAV fall below $1 or should the fund's board decide to suddenly liquidate the fund, the fund company has the right to suspend redemptions. In other words, the liquidity you expect from your money market funds can go instantly go away. How about that for causing a run on money market funds! Should another financial crisis erupt, mayhem is likely to ensue in one of the quietest and most boring corners of the investment universe. This could make 2007-08's financial crisis look like a cakewalk.

What is the SEC's response to all of this? They state, 'We understand that suspending redemptions may impose hardships on investors who rely on their ability to redeem shares.'

No doubt, the SEC's latest gaffe will re-invigorate our generation to become like previous ones; money mattress stuffers. Who can blame them?


https://www.zerohedge.com/article/s...ec-approves-new-money-market-regulation-4-1-v


US Debt Visualized in $100 Bills
http://demonocracy.info/infographics/usa/us_debt/us_debt.html

Boys use worthless banknotes for arts and crafts. 1923.

Oh Jesus, Zerohedge.

You would think being wrong about everything for the last decade would make people stop reading a website but apparently not.

 

[Bitek]

I certainly don't want you or anyone running out of money after retirement and then with no options left you have to eat cat food for the rest of your days.

I agree with you that sound financial planning should allocate enough money to live comfortably beyond the 7-10 year mark after retirement. What I don't agree with is having a healthy percentage of your asset allocations in higher risk investments once you reach retirement age. It's ok to have some of your wealth tied up in riskier investments but my point is if you have to much of it tied up in those risky investments and then the bottom falls out you're still going to be left eating cat food in a shitty apartment until you croak.

That's not what I'm saying tho.

Have 5+ yrs of funds in safer assets, and think about the rest in more aggressive funds.

How many severe drops of the market have we had, and how long did it take to recover? Even the GR of 2008 was largely recovered within several years. So... What's the point of playing defensively with assets not intended to be used for over a decade?

People quote this automatic rule, with no context. Just sounds like prevent defense rather than playing to win.

 

[Lanyap]

Here's Your Safety, Take it! (Article from YAHOO)

In its never ending bid to protect investors, the Securities and Exchange Commission (SEC) sometimes punches them in the face. (Whether these blows are completely intended or subtly inadvertent is the reader's choice to decide.)

Look no further than the SEC's latest 4-1 vote to restrict investors from redeeming their money inside money market funds. Feel free to re-read the previous sentence to make sure your eyes aren't playing games with you.

Under the rule, should your money market fund's NAV fall below $1 or should the fund's board decide to suddenly liquidate the fund, the fund company has the right to suspend redemptions. In other words, the liquidity you expect from your money market funds can go instantly go away. How about that for causing a run on money market funds! Should another financial crisis erupt, mayhem is likely to ensue in one of the quietest and most boring corners of the investment universe. This could make 2007-08's financial crisis look like a cakewalk.

What is the SEC's response to all of this? They state, 'We understand that suspending redemptions may impose hardships on investors who rely on their ability to redeem shares.'

No doubt, the SEC's latest gaffe will re-invigorate our generation to become like previous ones; money mattress stuffers. Who can blame them?


https://www.zerohedge.com/article/s...ec-approves-new-money-market-regulation-4-1-v


US Debt Visualized in $100 Bills
http://demonocracy.info/infographics/usa/us_debt/us_debt.html

Boys use worthless banknotes for arts and crafts. 1923.

You're a little late.

Suspending Money Market Redemptions Is Now Legal; SEC Approves New Money Market Regulation In 4-1 Vote
Profile picture for user Tyler Durden
by Tyler Durden
Wed, 01/27/2010 - 11:31

https://www.sec.gov/rules/proposed/2009/ic-28807fr.pdf

I. Fund Liquidation
1. Proposed Rule 22e–3
The Commission is proposing a new rule 22e–3, which would exempt money market funds from section 22(e) to permit them to suspend redemptions in order to facilitate an orderly liquidation of the fund. The new rule would replace rule 22e–3T, a temporary rule that provides a similar exemption for money market funds participating in the Treasury Department’s Guarantee Program.

Section 22(e) of the Act generally prohibits funds, including money market funds, from suspending the right of redemption, and from postponing the payment or satisfaction upon redemption of any redeemable security for more than seven days. The provision was designed to prevent funds and their investment advisers from interfering with the redemption rights of shareholders for improper purposes, such as the preservation of management fees.281 Although section 22(e) permits funds to postpone the date of payment or satisfaction upon redemption for up to seven days, it does not permit funds to suspend the right of redemption, absent certain specified circumstances or a Commission order.

>>>

 

[jmagg]

Recession's over!

(There will be a correction since PE ratios too damn high)

 

[IronWing]

Recession's over!

(There will be a correction since PE ratios too damn high)

That has been my thought for over a decade now and the correction never comes. My new thought: P/E ratios are okay as long as the Fed keeps interest rates near zero. What should be considered stupid high P/E ratios are sustainable indefinitely as long as money is free.

 

[jmagg]

That has been my thought for over a decade now and the correction never comes. My new thought: P/E ratios are okay as long as the Fed keeps interest rates near zero. What should be considered stupid high P/E ratios are sustainable indefinitely as long as money is free.

The bubble can hold only so much air.

 

[zinfamous]

The bubble can hold only so much air.

Only if you build loser bubbles. We only build winner bubbles that never break.

 

[jmagg]

Only if you build loser bubbles. We only build winner bubbles that never break.

Then it's a great time to buy! Fortunes are to be had!

 

[Jhhnn]

It's a conspiracy against Trump!

https://www.nytimes.com/2019/08/18/...&module=trending&pgtype=Article&region=Footer

 

[zinfamous]

It's a conspiracy against Trump!

https://www.nytimes.com/2019/08/18/...&module=trending&pgtype=Article&region=Footer

symptom # 373 of the current US Kleptocracy.

 

[K1052]

Encouraging...lol

https://twitter.com/x/status/1163951911831265285

White House officials are discussing a broader package of measures than previously disclosed, including a cut of an additional percentage point or two to the corporate tax rate. That’s on top of a potential payroll tax cut, which the Obama administration used to shore up the economy, and a move to index the capital gains rate to inflation, which potentially could be done through an executive order and has internal support from the National Economic Council, the vice president’s office and Mulvaney. Pegging the capital gains rate to inflation would exempt some gains from taxation.

This is not likely to be popular.

 

[fskimospy]

Encouraging...lol

https://twitter.com/x/status/1163951911831265285

This is not likely to be popular.

These people are seriously the dumbest.

Based on functionally the same economic data they have gone from:

1) the economy is great to
2) I don’t see a recession to
3) the recession won’t be that bad

We don’t even know if there will be a recession! These morons are so tied up in making sure it’s not Trump’s fault though they don’t spend any time on figuring out if it’s true or what to do about it.

 

[K1052]

These people are seriously the dumbest.

Based on functionally the same economic data they have gone from:

1) the economy is great to
2) I don’t see a recession to
3) the recession won’t be that bad

We don’t even know if there will be a recession! These morons are so tied up in making sure it’s not Trump’s fault though they don’t spend any time on figuring out if it’s true or what to do about it.

Trump recently (today I think) admitted that his tariffs might cause a recession but that it's "worth it".

It makes one wonder why the rosy assessments of the economy and sunny predictions have quite suddenly soured.

 

[Jhhnn]

These people are seriously the dumbest.

Based on functionally the same economic data they have gone from:

1) the economy is great to
2) I don’t see a recession to
3) the recession won’t be that bad

We don’t even know if there will be a recession! These morons are so tied up in making sure it’s not Trump’s fault though they don’t spend any time on figuring out if it’s true or what to do about it.

There's always a recession. It's baked right in to the very nature of Capitalism. They'd all be depressions if it wasn't for that blasted govt interference.

 

[fskimospy]

Trump recently (today I think) admitted that his tariffs might cause a recession but that it's "worth it".

It makes one wonder why the rosy assessments of the economy and sunny predictions have quite suddenly soured.

That’s sort of my point. Previously he was talking about how we were just getting tons of money from China. If that were the case how could it cause a recession? The answer is he was lying, same as he’s lying now.

The most important thing to recognize here is that they will not undertake any action because they think it will be good for the country. Every action they take will be because it’s good for Trump’s re-election. They don’t give a shit about anything else.

 

[brycejones]

Every action they take will be because it’s good for Trump’s re-election. They don’t give a shit about anything else.

When that is all keeping their collective asses out of prison you bet that is all they will focus on. Whenever this administration comes to an end and if it is succeeded by a Democratic administration I wouldn't be shocked to see shredding parties and the mass burning of documents.

 

[Vic]

Trump recently (today I think) admitted that his tariffs might cause a recession but that it's "worth it".

It makes one wonder why the rosy assessments of the economy and sunny predictions have quite suddenly soured.

Amazing how we've gone from an economic miracle to a recession within a few short months.

 

[K1052]

https://twitter.com/x/status/1164205717085184002

When this all ends spectacularly poorly I'm not going to refrain from I Told You So's.

 

[imported_tajmahal]

Dow Jones today 26,202.73

Up 100 points since the 2 week drop.
Oooohhh the humanity !
More of the typical Chicken Little panic from the usual Chicken Little suspects.

 

[JSt0rm]

Dow Jones today 26,202.73

Up 100 points since the 2 week drop.
Oooohhh the humanity !
More of the typical Chicken Little panic from the usual Chicken Little suspects.

The russians reactivated this account for the elections.