Credit-fuelled US stock market now ripe for a major crash

[dancingshoes]

the red portion is the -ve credit balance, when S&P peak, a lot of debt incurred thru borrowing to buy shares. it should mean many are buying bonds.

bro run, pls confirm. thanks!


http://www.advisorperspectives.com/dshort/updates/NYSE-Margin-Debt-and-the-SPX.php

what does the red portion of the chart represent?means people selling bond like crazy?

 

[Reddog]

greece is owing troika too much money, if they stay on in EURO, it will pull them down with it. there is also contagion that spain and portugal will follow suit.

simply, either way they stay or exit also die...


“The shadow of a Greek exit from the euro zone is becoming increasingly perceptible,” German Economy Minister and Vice-Chancellor Sigmar Gabriel wrote in a Bild newspaper opinion column to be published on Monday. “Greece’s game theorists are gambling the future of their country. And Europe’s too.”


http://www.bloomberg.com/news/artic...talks-aim-at-agreement-before-monday-iawiyjq5

Hey bros, is there a EUR/RMB pair for shorting ? Or even a USD/RMB ?

 

[dancingshoes]

rmb pair, i have not seen so far for retail. maybe have, i am not too sure.

Hey bros, is there a EUR/RMB pair for shorting ? Or even a USD/RMB ?

 

[Froggy]

Why this modern day urge to add "going forward" to just about every sentence.

Unless you're a time traveller, is there any other direction you can possibly go?

Should use "Let's move on"

 

[Runifyouhaveto]

Why this modern day urge to add "going forward" to just about every sentence.

Unless you're a time traveller, is there any other direction you can possibly go?

Sir, if you believe that there time-travel concepts, most theories advocate that we can go to future (going forward) but not turn back time (no other directions).

How to go to the future?
Imagine Dshoes bro and ah RUN are staring at the same clock. We can read the time because of light.
Light reflects to us the movement of the second-hand on the clock
If ah RUN can move faster than the speed of light, that means ah RUN can be ahead of the second-hand's movement
and be in the future ahead of Dshoes bro

 

[Runifyouhaveto]

View attachment 21788

In margin trading (some of us here also familiar),
Dshoes bro inject $20 to buy $100 worth of shares ($20 initial margin).
Let's say you have face margin call if the share fall below $80
The share last traded $90.
($100-$90=$10)
Although Dshoes didn't face margin call, he contributes $10 negative balance of the whole country.

ah RUN also inject $20 to buy $100 worth of shares ($20 initial margin).
His share last traded $70.
($100-$90=$30)
RUN contributes $30 negative balance of the whole country.

Negative credit balance don't mean 100% margin call, just higher risk of margin call, going forward.
$10+$30
Dshoes and RUN added $40 of negative credit balance to the whole country's financial system but only RUN kanna margin call, not Dshoes.



paiseh i hope i explained correctly.

 

[dancingshoes]

thks for the info, does this imply and indicate that yields are low for bonds, and there are people buying bonds cos' interest rate is low?

In margin trading (some of us here also familiar),
Dshoes bro inject $20 to buy $100 worth of shares ($20 initial margin).
Let's say you have face margin call if the share fall below $80
The share last traded $90.
($100-$90=$10)
Although Dshoes didn't face margin call, he contributes $10 negative balance of the whole country.

ah RUN also inject $20 to buy $100 worth of shares ($20 initial margin).
His share last traded $70.
($100-$90=$30)
RUN contributes $30 negative balance of the whole country.

Negative credit balance don't mean 100% margin call, just higher risk of margin call, going forward.
$10+$30
Dshoes and RUN added $40 of negative credit balance to the whole country's financial system but only RUN kanna margin call, not Dshoes.



paiseh i hope i explained correctly.

 

[Alamakinky]

Why this modern day urge to add "going forward" to just about every sentence.

Unless you're a time traveller, is there any other direction you can possibly go?

You are constrained by time and space....how come?

 

[Runifyouhaveto]

thks for the info, does this imply and indicate that yields are low for bonds, and there are people buying bonds cos' interest rate is low?

paiseh i think many reasons,
For example, our CPF SA-approved unit trusts need to maintain certain equity-to-bonds ratio in their portfolio

eg. if stock market is high = equity valuation is high = fund managers might buy more bonds to maintain the same equity-to-bond ratio in portfolio.

so there are too many ways to read into such things. I am not sure.

 

[dancingshoes]

no worries, thks for the info., cheers!

paiseh i think many reasons,
For example, our CPF SA-approved unit trusts need to maintain certain equity-to-bonds ratio in their portfolio

eg. if stock market is high = equity valuation is high = fund managers might buy more bonds to maintain the same equity-to-bond ratio in portfolio.

so there are too many ways to read into such things. I am not sure.

 

[Runifyouhaveto]

a bit recession coming, so thread carefully
dun anyhow spend money


Singapore port’s container throughput decreased by 11% in May compared to a year ago, according to preliminary estimates from the Maritime and Port Authority of Singapore (MPA).
http://www.seatrade-maritime.com/news/asia/singapore-box-volumes-drop-11-in-may.html


Others:
- Malaysia's export also dropped 8.8% recently
- China's export also fell for 3 months, imports down 17%

 

[Hans168]

greece is owing troika too much money, if they stay on in EURO, it will pull them down with it. there is also contagion that spain and portugal will follow suit.

simply, either way they stay or exit also die...


“The shadow of a Greek exit from the euro zone is becoming increasingly perceptible,” German Economy Minister and Vice-Chancellor Sigmar Gabriel wrote in a Bild newspaper opinion column to be published on Monday. “Greece’s game theorists are gambling the future of their country. And Europe’s too.”


http://www.bloomberg.com/news/artic...talks-aim-at-agreement-before-monday-iawiyjq5

will we get greek women as maids here? how abt Venus for me>

 

[syed putra]

Greece has been shouldering the burden of debt for 6 years and the troika wants it to continue. Greeks have no more stomach for it; it is better to just default.
France and Germany had to and may still have to bail out their banks when Greece default. It is time the banks take the hit for careless lending.

Euro banks already took a hit once. This greek bailout was made so that greece can service its people otherwise there will be no money as no new loans forthcoming. If they don't pay this one, there is no trust and confidence in greek gahmen and people wrt lending money to them.

 

[jw5]

Maybe, but please do not expect them to agree to "doing it greek style". :o

will we get greek women as maids here? how abt Venus for me>

 

[dancingshoes]

besides that, if greece cannot pay up and EURO still let them stay on. it will spark fear and distrust in EURO as a whole.

Euro banks already took a hit once. This greek bailout was made so that greece can service its people otherwise there will be no money as no new loans forthcoming. If they don't pay this one, there is no trust and confidence in greek gahmen and people wrt lending money to them.

 

[frenchbriefs]

Euro banks already took a hit once. This greek bailout was made so that greece can service its people otherwise there will be no money as no new loans forthcoming. If they don't pay this one, there is no trust and confidence in greek gahmen and people wrt lending money to them.

thats a trap isnt it?every country needs to have control of its own money supply(currency) to survive.some of america's pioneers like george washington learnt this early.if u dont have control of your currency u are at the mercy of others.

i learnt this from a youtube documentary why gold is ultimately a failure as a currency......liquidity.the lifeblood of all trade and commerce(commerical activity)is money.u need money to facilitate and encourage trade and economic activity.people need currency to buy and sell goods,to pay each other for services.if a currency is fixed and in limited supply like gold,the amount of gold based currency in a region's economy or country's economy can be easily controlled and amassed in the hands of a unruly few....the super rich and the bankers.ultimately the gold based currency will be under the control of the few super rich.they can cause massive liquidity problems by reducing the amount of gold currency circulating in the economy,causing its value to skyrocket,and people having to trade goods and services for these gold currency at exorbitant prices.when gold currency is in short supply around the country u are at the mercy of those evil people who controls the majority of the gold and lend you the gold at exorbitant interest rates essentially turning you into a debt slave to your creditors in perpetuity

when a country is in a economic crisis,it is vital that the government must be able to print as much money as it can and inject into the economy in order to increase liquidity and spending and stimulate the economy.this may lead to inflation temporarily but the argument is once the economy is recovered and back on its feet,the government can then use the surplus taxes to remove the excess liquidity slowly from the economy and cause the currency to strengthen again.

since greece is not in control of their currency,they are forever at the mercy of their creditors Germany and western europe.

 

[GG789]

I appeal to our friends here to be more thrifty, going forward.

 

[Runifyouhaveto]

What's wrong with the girl in the picture?

 

[GG789]

What's wrong with the girl in the picture?

you can offer your help. 60k only.

 

[Runifyouhaveto]

you can offer your help. 60k only.

I think she richer than me