Mnuchin calling the CEO of JP Morgan, Goldman Sachs, Morgan Stanley, Wells Fargo, Bank of America, and Citibank on Sunday while on vacation in Cabo is the reason why we're plunging. Mnuchin claims he called them to check for bank liquidity levels and to make sure it was ample.
You want to start a panic? This is how you start panic and bank run. Who calls bank CEOs on Sunday before Christmas to ask about bank liquidity if everything is ok and then says don't worry, everything is fine, I just checked? That's totally amateur hour and of course people will now freak out. Mnuchin just made Baghdad Bob very proud. "Don't worry, everything is fine. No need to panic!" He who panics first panics best. Mnuchin and Trump is supposed to meet with Plunge Protection Team today. You can bet the market will now test the PPT.
Early this year I was a bit disheartened that because I bought a house this year, I would be unable to put the type of money into the markets that I usually do (at least certainly not as early in the year). Now, though, boy am I glad. Happy to be spooling up to buy now...ish.
I don't plan on selling any time in the near, or intermediate, future. Fortunately. We also got really lucky with some very motivated sellers.well, yeah. But aren't you a bit concerned that the housing market is going to drop 5-10% on you this year? I am!
I don't have a problem holding, but when the h3ll to buy i'm not very good at.
prices are a good deal right now.
Not really. Still way overpriced. Kind of feel like the time to sell was a couple days ago however.
Until (Unless?) the Fed says they won't raise rates anymore, the market is headed downward until it actually hits historical norms on valuations.
The S&P is already below the 10 year average on evaluations and that was before the drop today.
The economy should be able to continue to function and grow with 3-4% rates.
I should add that you shouldn't assume a recession is coming, however, unless companies use the selloff as an excuse to start laying off people.
Like I said for some time now and seems to be picking up steam - All of this recession talk, down markets, etc. becomes self fulfilling.
Not entirely disagreeing, but I don't think people are going to stop spending unless they start losing their jobs. A lot of that is because people are just putting it on their credit cards; and as long as they can make the payment they are not going to change.
I would not be surprised if things unravel however.
Thats the thing.
Even though we are in a VERY healthy economy, with relatively low interest rates (when compared to the old norms) and all time low unemployment - the extended stock market decline based on lowered profit expectations could wind up being a "self fulfilling prophecy".
When hundreds of millions of people feel "poorer" because their 401k's take a big hit, they tend to spend less which works its way into the economy.
Less factory orders, less economic activity, lower profits, lower stock prices and again, less spending. Its a downward spiral which may lead to job losses.
Hopefully bargain hunters will start buying soon to help stabilize prices.
I honestly doubt the majority of people bat an eye at their 401k. Hell, I'm willing to bet they don't even read their QUARTERLY statements let alone daily activities.
market opened +200points.
good sign
+500 points!Plunge Protection Team... engage!