Capitol Hill Blue Forums Political Issues Finance, the economy & Economics The coming crash

Another 3000 point drop of the Dow today: The largest point drop in history. Sure glad I don't have any stocks! Motley Fool has been sending me new INVEST INVEST INVEST emails every day. I've been tossing them until we get a vaccine or antiviral drug and things start to look up.

Not even my Bitcoin account is safe. It's lost 50% of its value in the past month.

I went out of stocks last year and into corporate and Muni bonds. Started reading up on the corporate bond market and realized, like most of the economy, it was leveraged to the hilt. Went to cash.
Had an in-law ask about wether or not she ought to go out last week. Told her yes, at least by half and mentioned I was completely out. She called her ‘investment counselor’ who gave her the talk. Markets always do well over the long term, best investment in a diversified asset allocation, etc, etc.
She stayed in and she’s 78. Seems like criminal advice but then lots of things seem criminal but aren’t.

Thinking of going long on cigarettes, vodka and brass.

Bankruptcies, failures, job lost, DISASTER! On the other hand. Seems that they are going to go for the trillion dollar solution. Obama did it om 2008 and spent most of the money bailing out the states. This time around they are actually making few excuses, with well over 850 billion dollars for starters. They are talking a lot about small businesses, paying for tests, helping with child care and money lost by people who have either lost their jobs or are not getting paid. Its ALL about the little guy!

All that is really dandy if you believe in fairy tales. The tip off is that fact that the Republican senate is discovering that money can also go to bail out indebted corporations who can blame their failure on Covid-19 and gov will bail them out! We have known for some time that much of corporate America was heavily in debt (money was cheap). Money remains cheap but they are already too deep in debt to get any more from the banks but the congress, obviously, doesn't have that kind of bias, especially the Republican senate!

So, I will be very surprised if the little guy (so called) will see all that much when the Senate is through 'helping' the poor corporation folks who REALLY deserve a bailing out. We will know if something like this happens when the money is gone and nobody can find a little guy that was helped.

When all is said and done, and you can figure out who is going to get bailed out, and their stocks are worth approximately .0001 per share, then you can make enough to live the good life by making a little investment in the right company. Its deals like this that gets Warren's heart to beat a little faster. If the Dems win, and Warren gets put in charge of stocks and bonds, perhaps she can go after all involved in little deals like this?

Its gonna get pretty interesting..................

I was thinking about bonds a while back, and then my spider-sense about Trump kicked in. All in cash SIPC-insured accounts at my brokerage, and they make money if people buy or sell, if markets go up or down. They had some Chase insured CDs that paid 3.5%: My guess is Chase finances that rate by collecting 19% on their credit cards from morons who don't pay the full balance off. Looks like they may have a windfall now!

Interesting times. As we transitioned from a manufacturing economy to a debt service, or renting, economy what are the implications of retained risk with a country’s economy having historical amounts of corporate and household debt?
In other words, what will the losses be when the blowouts start happening? Will those losses be magnified, similar to the subprime markets of 2008, we side betting?
Read an interesting piece on life insurance companies. This will be a black swan event for them but are they capitalized enough to avoid collapse or will they require a bailout and, if so, at what cost?
This scenario and many others look to play out in the coming days. Like universal healthcare, it would probably be proven to be cheaper to invest in public goods and services, or ‘the general welfare’, than it does to periodically bail out Mr. Market as he’s now the only option for basic necessities for life and seems to need a lot of cash every 7-10 years to keep his car on the road.

My worry is, now that a left wing option has been kneecapped by the liberals, many industries will need to be nationalized under a 'too big to fail' scenario.

With a fascist party in office I can't see how that would turn out. If only there was some historical precedent....

passt...Fascism is a populist movement with a left wing option denied, Y'all.