Brexit crushes the big banks, other stocks

Image: Screengrab from CNBC video

This is called “an excuse.” People wanted to sell, they saw a big fat excuse to sell in Brexit, and so they have. (Some were just sure that Brexit wouldn’t happen and were simply forced to sell.) Smart people are also prudently looking to buy. But one way or another life will go on and the world will adjust. The big banks just got socked and that is a good thing.

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Buffett says if the government did THIS the Dow could hit 100K

Savers, you can forget about opting out of the stock market. If you want any kind of return you will get in the market and you will like it. So what if artificially repressed rates are crushing you? So what? Do you think you matter? Most of you savers will be dead soon anyway. You and your bank CDs. How quaint. Now pony up and buy some more stock grandma. Oh I’m sorry? You think there’s too much risk in the market?

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“There is no (global) recovery” Banks are abandoning the Japanese stock market, Japan to just dump “free” cash on its citizens? (VIDEO)

Abenomics, the massive Keynesian experiment spearheaded by the Japanese Prime Minister has failed and now this failure is just becoming obvious.

This stimulus effort having failed some economists (see the attached video) now think that fiscal stimulus is needed. (As opposed to monetary stimulus.)

That ain’t gonna work either but things are getting ugly and the Keynesians are getting desperate.

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The Year Nothing Worked: Stocks, Bonds, Cash Go Nowhere

Flat as your returns.

It is no secret that we at ACC believe there are deep systemic problems in the economy. All the current cronyism, economic obfuscation, over spending, over taxation, government intrusion, and most importantly Keynesian central bank meddling does not bode well for the future. (Though we can and must correct our ways in an historic way.)

Will 2015 be looked upon as the year the “recovery” began to completely stall? Will 2016 be worse than a stall?

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Chinese investment bankers missing

The Communist Party of China has lost some credibility, at home and abroad. The recent crash in Chinese stocks was ugly and exposed the tenuous underpinnings of the Ultimate Crony Capitalist State. China’s unstoppable rise to the top of the global economy suddenly didn’t look as unstoppable as it had. Economic issues which critics had raised for years (particularly the real estate bubble) and which had been glossed over by international analysts and Chinese leadership alike suddenly became of serious concern.

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Global wealth shrinks for the first time since Lehman

This speaks to the “financialization” of the modern economy we referenced in a post yesterday. In a fiat currency world the banks truly, and almost totally run the show. The central banks particularly. And the American Federal Reserve most of all. If one is riding the financial asset train one is likely better off than one was in 2000. If however one is not on that train, if one lives in the real economy as most middle class Americans do,

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Dow briefly plunges 300 points; biotech pushes Nasdaq 3% lower

We’ll see how the rest of the day pans out. At this moment we’ve got an hour and a quarter to go. But medium term sentiment on Wall Street appears to be be shifting as we see yet another day of broad selling.

It’s been a weird ride since midsummer. Mostly down but with a few big pops up. The Dow is off 2000 points or so from its high. People are starting to look around with a little more adrenaline in thier veins.

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Cronynomics: China stock market rebound the result of ‘secret’ government intervention

Things just keep getting wackier in The Ultimate Crony Capitalist State.

Hey, why not just have the government come in and buy up the stock market? That ought to do the trick. Nothing could possibly go wrong with that. It’s not like this whole crash was precipitated by central planning and malinvestment or anything.

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So the market went up 441 points today, then dropped like a rock in the last hour of trading, finishing 204 points down

Image: Marketwatch

At the start of the day everyone had “plunge protection team” in the back of their minds. (Even if they wouldn’t say it.) It looked as if the short term fix was in. But it turned out to be more short term than many expected. When the dust cleared we were down, again, for the 6th day in a row.

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