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Post by Hobbyfarmer on Aug 7, 2011 18:15:18 GMT -5
Market Pulse
Aug. 7, 2011, 6:46 p.m. EDT
U.S. stock futures drop in Asian trading
:
By Sarah Turner SYDNEY (MarketWatch) -- U.S. stock futures were trading sharply lower in Asian trading hours on Monday after rating agency Standard & Poor's lowered its rating on U.S. debt to AA+ from AAA late Friday.
In addition, Europe is continuing to struggle to contain its sovereign debt woes and said over the weekend it will actively implement its bond-buying program in an effort to calm markets.
(READ THIS AS THEY WILL PRINT MORE MONEY)
Dow Jones Industrial Average futures were down 248 points at 11,156, Nasdaq 100 futures fell 42.25 points to 2,144.75 while S&P 500 futures dropped 25.90 points to 1,171.90.
Oil futures fell $2.41 to $84.47 a barrel in Nymex electronic trading while investors sought the safety of gold, pushing futures in the precious metal up $35.40 at $1,687.30 an ounce.
OH JOY... NO BOREDOM TOMORROW
(READ THAT COMMENT AS PURE SARCASSIM)
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Post by Hobbyfarmer on Aug 7, 2011 18:52:06 GMT -5
FTF: with cheap oil will go depressed commodity prices. This will lead to a deflating land price. Precious metasls will be a given to rise as the value of fiat currency goes down the drain. Ethonol will fall on it's face and lead to a futher downward movement on grain prices and the almost certain defunding of Ag subsities and crop insurance in the next year or two will collapse the land market further. JMHO
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Post by ses on Aug 7, 2011 19:05:29 GMT -5
FTF: with cheap oil will go depressed commodity prices. This will lead to a deflating land price. Precious metasls will be a given to rise as the value of fiat currency goes down the drain. Ethonol will fall on it's face and lead to a futher downward movement on grain prices and the almost certain defunding of Ag subsities and crop insurance in the next year or two will collapse the land market further. JMHO I couldn't agree more. I don't know how you're supposed to protect from falling land prices but I think that's right around the corner. Another thing to think about is the US losing it's triple A rating this will begin to move interest rates up IMO. The government has so damn much money borrowed from countries that are getting pissed there's is no way this will end well. Isn't it ironic,, Reagan drove the Russians into virtual bankruptcy. Now we owe them tons of money and will soon be kissing their asses (or already are) hoping they don't pull the plug. |
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Post by Hobbyfarmer on Aug 7, 2011 19:15:08 GMT -5
MARKET WATCH Bulletin
Japanese stocks open sharply lower after S&P downgrades U.S.; Nikkei Average down 1.6%
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Post by Hobbyfarmer on Aug 7, 2011 19:25:23 GMT -5
There are two ways Land etc can go down..
1) pure and simple deflation like in the '80's
2) the price stays more or less stable as a $/acre value. The printing presses keep running and the money devalues. which is the same as the price going down,.
This is a lot like daylight savings time. Nothing really is different we just screw with the hands pointing to the numbers on the clock.
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Post by linsal on Aug 7, 2011 19:52:27 GMT -5
Maybe if the stock market crashes far enough, the 536 people in Washington D.C. who can do something about the budget deficit and the national debt will do something about it?
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mfs
Hired Hand
Posts: 163
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Post by mfs on Aug 7, 2011 20:52:17 GMT -5
Gold has been up as much as $62/oz this evening and simply a reflection of confidence in government. Gold has no intrinsic value other than that placed by individuals over time. We and the world have little if any confidence in their "leaders". I would suggest reading the story of Jesse Livermore as so many parallels. It is the Reminisinces of a Stock Operator. It is a very intriguing read and finish in a couple of hours. We behaved similarly after WWI for currency degradation. What is a stock worth with government intrusion and the prospect of oppressive taxation. Governments create nothing but should exist under the precepts they were established.
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Post by Hobbyfarmer on Aug 7, 2011 21:40:20 GMT -5
Maybe if the stock market crashes far enough, the 536 people in Washington D.C. who can do something about the budget deficit and the national debt will do something about it? Yep they WILL do something about it .... INCREASE it |
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mfs
Hired Hand
Posts: 163
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Post by mfs on Aug 7, 2011 22:34:28 GMT -5
Simple observation of the markets this evening. There is no carry in the cost of futures of either gold or silver. People want real wealth now. Crude has some carry to and probably a greater store of real wealth. It is hard to transport grains or fuels for wealth. You can transport gold and silver more easily.
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Post by Hobbyfarmer on Aug 8, 2011 7:09:55 GMT -5
Aug. 8, 2011, 7:20 a.m. EDT
U.S. stock futures sink, gold soars after S&P move
Gold futures surge $60 as investors seek a safe haven
•Gold futures trade over $1,700 an ounce
By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) — Wall Street was set for a sharply lower opening Monday after the unprecedented downgrade of U.S. debt by Standard & Poor’s, while gold futures soared nearly $60 as investors sought a safe haven.
Futures on the Dow Jones Industrial Average slumped 245 points to 11,159. Futures on the Standard & Poor’s 500 index dropped 29.30 points to 1,168.50 and those on the Nasdaq 100 sank 54.50 points to 2,132.50.
S&P downgrade: What will be the fallout?S&P downgraded the U.S. government's AAA sovereign credit rating, an unprecedented action that could send shock waves through the global financial system.
After the close of Wall Street trading on Friday, Standard & Poor’s downgraded the U.S. government’s AAA debt rating to AA+, and assigned it a negative outlook. The agency said the U.S. political system had become less stable and the deficit-reduction deal reached by lawmakers last week was not extensive enough.
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Giving the Obummer group another 2 trillion in new debt to squander over the next couple of years is NOT a good thing.
Rational people with thinking skills and money know this.
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Post by looter on Aug 8, 2011 7:12:48 GMT -5
Farmland will not crash in value. People on this board do not view it as such, but ag land, or any land far enough from cities with potable water is a "Doom Play". Here are the Doom Plays;
1) Diamonds. You can escape the country with a ton of wealth inside a balloon in your intestines. Undetected by scanners etc.
2) Gold for largely the same reason.
3) Farmland with easy water far from population centers.
4) assault weapons ammo
5) whiskey.
I expect propane to outperform crude oil because it has an indefinite shelf life.
None of the Doom Plays have a thing to do with cash flow, economics, or business. It's allow about raw naked fear. Put yourself in the shoes of a suburbanite viewing the violence out their back window.... They will punk down their life savings on 40 acres and solar panels far away.
The only thing that has ever created a rollback in land prices every time its tried is a sudden increase in oil flow capacity. (North Sea) The guy worried about falling land values merely has to look over his shoulder for another one of those. It ain't about oil prices, its about DOOM.
Google "Doomstead". Everybody wants one....
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Post by looter on Aug 8, 2011 7:20:35 GMT -5
The survivors of the Black Plague created a phrase....
"Go Early. Go Far. Stay Long."
We are cancelling all of our trips we had planned. Gonna try to make it to a couple NFL games this fall if things aren't too dice, cuz IMHO such events won't exist at all much longer. Societal breakdown will kill off such joy.
Argentina went through this a decade ago. It only lasted a couple years. If we are lucky, default VIA inflation will go as smoothly here. I doubt it. They fell out of the first floor window. We are falling from the Penthouse Suite.
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Post by Hobbyfarmer on Aug 8, 2011 7:33:06 GMT -5
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Post by ses on Aug 8, 2011 7:37:29 GMT -5
Looter , the next North Sea" might a huge drop in US consumption. With the US using 26mbpd a drop of 10 mbpd would do it and have a severe economic collapse to go with it. You're probably right about inflation though. Wonder how many Zimbabwe dollars it would take to buy an acre of Iowa land. lol.
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Post by Hobbyfarmer on Aug 8, 2011 7:40:43 GMT -5
"Wonder how many Zimbabwe dollars it would take to buy an acre of Iowa land."
They have been printing them for years now, and still haven't printed enough to get one acre of good farm ground here in Ioway.
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