Just What The HELL Are Traders Thinking?

Discussion in 'Stock Market' started by BakshisMouse, Jun 11, 2012.

  1. BakshisMouse
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    BakshisMouse BANNED

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    Anyone with eyes to see or fingers to read Braille knows that the Euro currency is not long for this world. Germany and the European Central Bank are screwing themselves over royally right now. This is more clear now than it was in October.

    Why is the S&P 500 still more than 20% above the 52-week low? It's more than reasonable to assume the market will eventually see even larger losses than what were seen last year.
     
  2. Avorysuds
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    Avorysuds Gold Member

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    Bubbles... QE3.... this is what they are thinking, get rich before they crash the markets then ger the Government to bail them out. Bushbama will save them.
     
  3. BakshisMouse
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    BakshisMouse BANNED

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    Last time I checked, when there was a huge market crash in 2008/2009, shareholders lost big time, but the corporations themselves were saved.
     
  4. iamwhatiseem
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    iamwhatiseem Gold Member

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    QE3
    The market has a fail safe backup account called "FED". The Plutocratic system in Washington will not let them lose this much money.
    You ask this question as if you think Wall Street is doing anything different now than in 2006 and before.
     
  5. iamwhatiseem
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    iamwhatiseem Gold Member

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    -- Also the larger traders have automatic sell levels. So they stay in all the way to the moment of crashing.
    This is why markets crash so suddenly.
     
  6. BakshisMouse
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    BakshisMouse BANNED

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    The Federal Reserve is doing its part to keep long-term interest rates low.

    Why would any private financial firm be grateful for the Fed's efforts?
     
  7. Animus
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    Great points. It'll be interesting to see the fight between small private banks and the "Too Big to Fails" as this thing starts to unravel.
     
  8. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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    What? They don't borrow money?
     
  9. BakshisMouse
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    BakshisMouse BANNED

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    They lend more money than they borrow.
     
  10. Middleoftheroad
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    Middleoftheroad Active Member

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    Well not really. They don't use their own cash for lending. All the lending comes from money they borrow from the fed or from their customers. As interest rates lower the lending and the borrowing rates decline. So they pay less to those they borrow from and they collect less from those they lend too. What they are hoping for is lower rates to increase how much people are borrowing, which means more money for them.
     

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