CRASH AND BURN

Originally Posted by urbansombrero

As long as corporations can exploit cheap foreign labor, I dont see inflation being a problem in the United States (as calculated by the CPI). Inflation will become a problem when the chinese worker starts to get pissed off and starts asking for 100% pay raises. Then you will see **** hit the fan bro.

My recollection [and I can't find the article that mentions this] is that imports from China aren't nearly as much of U.S. consumption as people think - that it's only like 7% or so. I'll see if I can recall where I saw that and post the link.

If that number is close [or the real number is anywhere near close], 100% inflation in China wouldn't have much of an effect here. It would, however, bring a significant swath of the world's economy to a grinding halt.

http://www.marketwatch.com/story/glo...ist=beforebell

FRANKFURT (MarketWatch) — Global central banks announced coordinated action on Wednesday to shore up liquidity in the financial system as Europe’s banking system showed growing signs of stress amid the euro zone’s deepening debt crisis.

The moves were announced in statements issued simultaneously by the U.S. Federal Reserve, the European Central Bank, the Bank of England, the Bank of Japan and the Swiss National Bank.

“The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity,” the banks said.

The central banks agreed to lower the pricing on existing temporary U.S. dollar liquidity swap arrangements by 50 basis points, putting the new rate at the U.S. dollar overnight index swap (OIS) rate plus 50 basis points. The pricing will apply to all operations beginning Dec. 5.

Party on, guys. Party on. Oh sure, this doesn't actually fix the fact that the system is choking on debt and a ton of it is going to get written off - but as long as there's punch in the bowl, it's time to slurp up some more.

[Dismal Science]

Just wait - soon the ECB will cave and start buying bonds from the most distressed countries to keep them below a certain interest rate. If the ECB doesn't do it I'm sure the Fed will do it on their behalf eventually.

[Dismal Science]

I'm guessing a strong opening rally that fades into the close today

[Dismal Science]

Markets are open:

Dow Jones
11,875.32 +319.69 (2.77%)

S&P 500
1,227.39 +32.20 (2.69%)

Nasdaq
2,584.06 +68.55 (2.73%)

[Dismal Science]

Man I was wrong about where the market closed:

Dow Jones
11,969.05 +413.42 (3.58%)

S&P 500
1,246.96 +51.77 (4.33%)

Nasdaq
2,620.34 +104.83 (4.17%)

[ElDucky]

I'm seeing 12,045.68 +490.05

[Dismal Science]

Originally Posted by ElDucky

I'm seeing 12,045.68 +490.05

Yeah - you're right - Google finance corrected itself after a few minutes.


Dow Jones
12,045.68 +490.05 (4.24%)

S&P 500
1,246.96 +51.77 (4.33%)

Nasdaq
2,620.34 +104.83 (4.17%)

[d123454321]

Originally Posted by Dismal Science

Yeah - you're right - Google finance corrected itself after a few minutes.


Dow Jones
12,045.68 +490.05 (4.24%)

S&P 500
1,246.96 +51.77 (4.33%)

Nasdaq
2,620.34 +104.83 (4.17%)

Another chance to dump S&P above 1200...enjoy guys.

Thanks ECB, FED for putting the VIX below 30 again so the puts are cheap

[The Shining]

This Euro thing is a mess. Wonder who is going to come out on top. If we buy all the Euro debt and China has all our debt, does China own the world?

Is anyone still suggesting oil be traded in Euros?