Senate Bears Thread - Global Meltdown in Financial Markets

I expected Jabbadabbado to be making this thread.

 

I'm hoping things turn around fairly quickly. I'm exposed both to the US and UK markets via unit trusts and mutual funds. However, as long as China is 'iffy' and the Fed is sending mixed signals about interest rates I have a feeling things will be shaky.

 

The corrections should mostly be over, with fluctuation the next few days but nothing as obscenely bad as the Chinese market this morning again (one hopes).

 

At least Greece is out of the mix for now. There have also been rumors of rate hikes here in the UK but nothing so far. I wouldn't mind that as I paid off my mortgage earlier this year. If rates went up my savings might do better return-wise.

 

August is usually quiet here in the UK as a lot of people go on holiday but that hasn't been the case this year. Next week might be quieter as Monday is a bank holiday here and the UK market will be closed.

 

Gonna make Stephen Colbert scared.

 

It bears repeating that the economy is not doing very well right now.

 

Company stock went down $15 over the last two market days, so yay.

 

Uh... like RIGHT NOW right now, or in general right now? It's been doing pretty well right now...

 

agreed the long predicted fed rate increase may fail to materialize again. Big drops in energy and commodity prices should put a lot of downward pressure on inflation. That's good for U.S. consumers. Energy producers are a bit screwed. The 2015 drop off in rig count is startling - indication that new well development in places like Bakken, Eagle Ford, etc. is no longer economical at current prices. I would have said that oil prices were nearing the bottom of a supply-driven price cycle, but with China in a potential downturn energy prices may take another major demand hit. That will drive more producers out of the market and will eventually bring U.S. supply growth to a standstill. It's been rough watching the North Dakota oil boom disintegrate and the rest of its economy along with it. During the latter part of the great recession ND was an economic sweet spot, now it's in the middle of its own little real estate bubble collapse etc.

 

Today I mean. Really I just wanted to use a horrible pun. I resisted making a Tigger joke in your trigger thread.

 

The stock market has been doing better than it should be for years. Most ordinary people won't feel any negative effects from this correction, even if it is rather sharp. For once it's not because it's America making poor decisions or anything wrong with our economy, it's China's house of cards finally being exposed.

 

I know, that's elementary stuff.

 

the U.S. is more fuel efficient, has reduced its consumer debt load since the great recession, but Europeans and Asians would likely say our trade deficits and national debt as a % of GDP are still what's wrong with our economy.

 

Unless the Iran deal blows up in everybody's faces (figuratively and possibly literally), then all bets are off.