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Old 11-01-2011, 03:56 PM
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Somebody explain to me why Greece has such an effect on our stock market? I understand it's a global economy and we hold someone else's debt and they hold ours. However, if the situation was opposite, meaning our market affected theirs in the same way, wouldn't we have wiped some countries out a long time ago? Not so sure what the hype is about. Let's hear some simple, plain Jane answers!
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Old 11-01-2011, 04:18 PM
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The whole world is leveraged to the eyeballs with massive amounts of debt. If a sovereign goes down, it sets off the dominoes, where it stops, nobody knows.
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Old 11-01-2011, 04:21 PM
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It stops when China owns the whole world. That's where it stops. They won't even have to fire a single shot; they'll own everything.
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Old 11-01-2011, 04:52 PM
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Because fund managers need to make a profit so they manipulate the market .......

LOL
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Old 11-01-2011, 04:56 PM
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Investor panic has something to do with it.
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Old 11-01-2011, 05:02 PM
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Originally Posted by triplenet View Post
Because fund managers need to make a profit so they manipulate the market .......

LOL
Nothing to laugh about. That's about it in a nutshell. And they're in bed with the media to spread panic to the lay investor. Funds have already sold off yesterday and today well before the average Joe gets out of bed and sees futures in the tank. Too late then.
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Old 11-01-2011, 05:46 PM
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Because it has become a game controlled by very wealthy and powerful people.
A home investor looking at fundamentals is playing with themselves, yes it will keep you from investing into a poor company but, any hedge fund managers or other fund managers that want that stock and have it beaten down to a good entry point, if they own it they can have it pumped up, to make for a good exit.

All it takes is a couple appropriately placed people with the proper leverage.

I had worked on wall street for a number of years, in the beginning it looked to be a place of great opportunity with the proper knowledge and some luck, but you quickly realize how this game is played, and the big boys don't like to lose.

Everyone is angry at the latest man to be charged with insider trading, if only they knew how regularly it occurs.
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Old 11-01-2011, 06:21 PM
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Short term the market trades on emotion(fear and greed). Long term, corporate earnings are more important.
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Old 11-02-2011, 07:38 AM
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OP

read this

http://www.321gold.com/editorials/mo...rty110211.html
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Old 11-02-2011, 08:59 AM
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Originally Posted by nat View Post


Wow! Not an encouraging article! Looks like I'm headed for the bunker, cash in hand!
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Old 11-02-2011, 09:06 AM
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Originally Posted by Carolina Custom View Post

The whole world is leveraged to the eyeballs with massive amounts of debt.

Excuse me?!? ;?
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Old 11-02-2011, 02:00 PM
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It's stupid and only an excuse for the traders to manipulate the market.

Greece GDP = $305B

North Carolina economy = $400B

;?;?;?;?;?

The market swings trillions and trillions of dollars both ways, and for what? Because of an economy smaller than NC's?
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Old 11-02-2011, 04:33 PM
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Originally Posted by baypro21 View Post

The market swings trillions and trillions of dollars both ways, and for what? Because of an economy smaller than NC's?

It is not because of Greece -- it is because of PIIGS (Portugal, Ireland, Italy, Greece, Spain). They are dominoes standing all in a row. If Greece falls ...
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Old 11-02-2011, 06:14 PM
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I do realize that. I do stand by my assessment of an excuse for market manipulation as well. "Never let a crisis go to waste".
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Old 11-02-2011, 08:33 PM
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I don't know why, but when I think of the stock market I think of pari-mutual wagering at the horse track. The bettors cause the odds to change. One big brokerage with a telephone team touting a stock to their largest clients will cause that stock to surge. Tomorrow morning those same telemarketers will tell their clients that some unforeseen overnight issues makes them think the stock will tank, and by afternoon, guess what. Everyone sells their shares and the stock tanks. And don't forget the hedgefund mgrs.
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Old 11-02-2011, 08:35 PM
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Originally Posted by horsepen View Post
I don't know why, but when I think of the stock market I think of pari-mutual wagering at the horse track. The bettors cause the odds to change. One big brokerage with a telephone team touting a stock to their largest clients will cause that stock to surge. Tomorrow morning those same telemarketers will tell their clients that some unforeseen overnight issues makes them think the stock will tank, and by afternoon, guess what. Everyone sells their shares and the stock tanks. And don't forget the hedgefund mgrs.


Bingo!!!!
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Old 11-02-2011, 11:34 PM
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Originally Posted by horsepen View Post
I don't know why, but when I think of the stock market I think of pari-mutual wagering at the horse track. The bettors cause the odds to change. One big brokerage with a telephone team touting a stock to their largest clients will cause that stock to surge. Tomorrow morning those same telemarketers will tell their clients that some unforeseen overnight issues makes them think the stock will tank, and by afternoon, guess what. Everyone sells their shares and the stock tanks. And don't forget the hedgefund mgrs.

It's bigger ... much much bigger. Estimates are near a $1-quadrillion ($1-trillion x 1000) in derivatives are outstanding, worldwide. There is no known figure as to how much of that depends on Europe's stability.

I think of it as the day someone in the financial world that matters woke up and said "the king has no clothes on!" And suddenly everything has changed.
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Old 11-03-2011, 07:22 AM
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Originally Posted by Eyeball View Post
It's bigger ... much much bigger. Estimates are near a $1-quadrillion ($1-trillion x 1000) in derivatives are outstanding, worldwide. There is no known figure as to how much of that depends on Europe's stability.

I think of it as the day someone in the financial world that matters woke up and said "the king has no clothes on!" And suddenly everything has changed.

You're correct, it's too big to comprehend. But I'm talking about why it's so hard for an individual trader to make it big in the market. I personally think that right now day traders are probably doing well with the wild swings we see in the Dow currently. Three hundred point gains or losses are not uncommon any more.
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Old 11-03-2011, 10:52 AM
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Originally Posted by Dulcecita Lures View Post
It stops when China owns the whole world. That's where it stops. They won't even have to fire a single shot; they'll own everything.
China wouldn't try to own the whole world. They are smarter than that. They would just buy the pieces that would do them good monetarily and strategically.

But.

Even with a couple trillion in cash sitting there they don't have enough funds to touch the amount of debt in the world today.
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Old 11-03-2011, 11:01 AM
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Greece is just the canary in the coal mine.

Basically, it boils down to this. If the EU and for all intents the rest of the world also, can't back stop the picayune amount of debt Greece has, how would the world financial markets ever think about shoring up Italy and/or Spain and/or Portugal.

The world economy is fatally broken and just looking for a place to crash at this point. I don't have much doubt anymore that it is unavoidable. It's simply impossible to "service" the amount of debt, both public and private, that exists in the world today.

I would really enjoy personally castrating the person(s) that invented credit default insurance (CDS and CDO debt instruments)....with a mallet and a very dull knife.

Next in line would be the politicians who enabled laws that allowed such financial tools to be legal in the first place. Feed them to the lions Roman Coliseum style then play the video to anyone choosing to run for office subsequent to that.

I am in a good mood today............
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