The Dow is down by 800 points (at 12.20 CST) today on recession fears.
The global economy seems to be sputtering with 5 of the world's largest 10 are showing signs of slowing down..... Germany, Britain, Italy, Brazil and Mexico are at risk.
The Inverted Yield Curve has correctly predicted the market slow down and a recession when the dot.com burst of 2000 and financial meltdown of 2008 came in the U.S.
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16 comments
Feel free to reply to any comment by clicking the "Reply" button.protect yourself with the barbaric metal (Keynes). gold bullion up 20% this yr & i have precious metals MFs up 40%.
callmedubious
Level 8
Aug 14, 2019
1
It is almost inevitable that DJT gets blamed for the next recession. Consider: If we have a recession now before t he election, it gets blamed on trump and he might not get re-elected. If he wins a second term, we have a recession anyways and it gets blamed on trump. There is a small chance that the economy holds out until 2024, but I think that's unlikely and in some regards this could be the worst case scenario.
Happy_Killbot
Level 7
Aug 14, 2019
1
The Great Wall Street casinos are running on empty, too much leverage, the money supply value can not keep pace.
trump bankrupted two or was it three casinos!
The balloon can only hold so much sewer gas before the bubble bursts the balloon!
Greed of the wealthy and their corporations are the principal cause of this mass manipulation of stocks, bonds, and currency!
The Obstructionist republicans owned completely by wealthy and their corporations have isolated the taxes and profits for the complete benefit of the wealthy!
You can only steal so much legally, hence when there are too few who own almost all the wealth, there comes a time when the overt control of the economy can not be harness, thrus spills out for being overly leverage to the point of negative value, thus becomes worthless!
of-the-mountain
Level 9
Aug 14, 2019
3
Umm... how exactly do you think the stock market works?
Relax.
It's just cyclical.
bigpawbullets
Level 9
Aug 14, 2019
2
Yes... every Republican cycle. Lol
Since Trump has been president the DOW has dropped 600 points or more in a single day 12 times. Feb 5 and 8 in 2018, the DOW dropped 1000 points or more on each day. There were probably recession talks back then too
However, the DOW has increased 500 points or more in a single day 8 times since he's been in office, and increased more than 1000 points back in Dec 26, 2018.
Who knows if we are in a recession or not...maybe some economists.
joeymf86
Level 8
Aug 14, 2019
1
There are several other signs showing up today that weren't present back then. Today is more troubling.
- CNN is playing it full with Headlines and Breaking News with every hour updates, emphasizing "recession signs'
- Fox News has a small mention
St-Sinner
Level 9
Aug 14, 2019
3
The business voices have been getting louder at Fox over the past month. Those voices are more loyal to the dollar than to the politics. (Except for Lou Dobbs. Trump is GOD to him.)
I wouldn't get to excited. I have stated before that we will expect a recession in the next few years due to natural market cycles, but a large sudden drop like this isn't necessarily a sign of imminent doom. Not to be a Debby downer or anything, just saying don't break out the fancy wine yet. Also, there is a recession coming so you might not want to break it out at all.
Happy_Killbot
Level 7
Aug 14, 2019
4
You mean wine at the DNC?
@St-Sinner I think I mean the whine from the DNC.
Tired of winning so much???
Mofo1953
Level 9
Aug 14, 2019
2
"We are gonna win, win, win. We're going to win with military, we're going to win at the borders, we're going to win with trade, we're going to win at everything. And some of you are friends and you're going to call, and you're going to say, 'Mr. President, please, we can't take it anymore, we can't win anymore like this, Mr. President, you're driving us crazy, you're winning too much, please Mr. President, not so much, and I'm going to say I'm sorry, we're going to keep winning because we are going to make America great again."
Presidential Candidate Donald Trump in 2016
I really, really can't stand Trump, and he's already shown signs of retreating from this tariff war (no tariffs on clothes or phones until after Christmas?). The economy is really his only hope of a success, so he better do something to turn this around quick or our economy is going to tank right along with his presidency.
@greyeyed123 as people in his administration said: he's a fucking moron!
@Mofo1953 He has shown signs of completely reversing on economic issues when things start going south. He already backed off the clothing and phone tariffs until after Christmas. He'll find a way to back out of everything, declare victory, and move on. Hopefully China doesn't steal the shirts off our backs in the process.
@greyeyed123 he has also shown signs of senility, dementia, narcissism, racism, xenophobia, paranoia, stupidity and countless other mental issues
If it corrects itself even the week before the election some people will buy into how DT was responsible for its return. Right now the tariff wars are also taking a toll on everything.
AmelieMatisse
Level 8
Aug 14, 2019
6
What if he manages to cut a deal (good or bad) with China and declares a victory to boost the Stock Market and Consumer Confidence?
@St-Sinner If he catches it early enough, it may work. If not, there will be a stampede for the doors that no bs will stop.
according to velshi and rule what happened today has happened before and in ten mos. a recession will follow
whiskywoman
Level 8
Aug 14, 2019
1
No one really knows, but this is very troubling. These pullbacks tend to occur every 10 years or so, and we are overdue. (The stupid tariff thing may be accelerating things, or making them worse when it finally happens.)
Today, every European market closed well down on the day. Every Asian market closed a little bit up on the day.
Petter
Level 9
Aug 14, 2019
1
Maybe we should be chumming up to Asia.
Are not the Asian markets on their local times? If I am not mistaken, the "little bit" up is from last night, before our markets opened and tanked. The Nikkei opens in 4 hours. The other Asian markets should be on similar schedules.
@greyeyed123 Agreed. I was once again allowing for others to know that. The Dow had not yet closed, so I didn't mention it, for the same reason. The Dow and Nasdaq dropped even more, by over 3% each. I reckon the Asians will follow suit, then there will ne a rally around 10am GMT. How large and for how long is impossible to predict.
Let's see if I'm right!!
IMO
Good economic conditions reelect presidents.
Sex scandals do nothing, but sell ads.
Poor economic conditions take out presidents.
Heathenman
Level 7
Aug 14, 2019
2
Music to Democrats Ears?
Is 800 pts a lot?
TheGreatShadow
Level 9
Aug 14, 2019
1
Not for the size of 27000 but it was down by 1200 points once at 25,077. This is the first time in the last 10 years. Some can call it a correction but the inverted yield curve is suggesting signs of weakness in the economy.
@St-Sinner sure its 3% . That's a lot.
How much interest do you get from a savings bank. Certainly less than 3% and that is what the 800 points represents.
@Petter Sure, but 3% in one day in the entire market (as opposed to 3% in one year in your bank)...with underlying signs that are troubling with Trump and China in a tiff...the yield curve inverted for the first time since June 2007, the fear index is up 22% today, Germany showing signs of recession, and China in a slowdown (among many other signs today) is extremely troubling.
Maybe the other shoe is not dropping yet, but there is enough there to believe it is about to. Once enough people believe it is about to, it will. And by the time everyone realizes it, it will be at bottom.
@greyeyed123 I know all that stuff, I was keeping it simple.
Black monday, 1987, was a massive drop, and I could do nothing about it. I was flying from Kenya to England and completely out of touch. By the time I was back in touch I had lost a couple of hundred thousand dollars in stock values. That really hurt!
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