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View Full Version : EPIC PLUNGE: -633.78, 6th Largest Drop In Dow Jones History




Agorism
08-08-2011, 03:23 PM
http://www.zerohedge.com/news/epic-plunge-63378-6th-largest-drop-dow-jones-history


And there you have it: following last Thursday's massive 500 point drop which so many said was a buying opportunity, here comes a -633.78 plunge in the DJIA, which is the 6th largest absolute point drop in Dow Jones Industrial Average history, following 4 larger drops in 2008 following the Lehman bankruptcy, and one back in 2002. We just made history. If the DJIA can drop more than 800 points tomorrow, which it probably will if Bernanke does not announce QE3 in some form, 2011 will be #1!

harikaried
08-08-2011, 03:26 PM
"If the DJIA can drop more than 800 points tomorrow, which it probably will if Bernanke does not announce QE3 in some form, 2011 will be #1! "

Not?

PastaRocket848
08-08-2011, 03:38 PM
yes. the markets love QE. who wouldn't love a bunch of new money being thrown at them?

Freedom 4 all
08-08-2011, 03:49 PM
On the plus side, gold and silver are SKYROCKETING!!!!

dannno
08-08-2011, 03:52 PM
If QE3 is announced, will that put anything else on shaky grounds yet, like long term bonds?

brandon
08-08-2011, 03:52 PM
On the other hand, if they do announce QE3 and the markets continue to drop, complete panic will break out.

Agorism
08-08-2011, 03:55 PM
QE3= need another debt ceiling fight.

Now that is what will be funny about the whole thing. They will hit the debt ceiling almost immediately.

trey4sports
08-08-2011, 04:01 PM
QE3= need another debt ceiling fight.

Now that is what will be funny about the whole thing. They will hit the debt ceiling almost immediately.

*QE3 has nothing to do with the debt ceiling. The FED injects paper into the economy without it showing up on the Congressional budget.

* = could be wrong on this

AuH20
08-08-2011, 04:02 PM
QE3= need another debt ceiling fight.

Now that is what will be funny about the whole thing. They will hit the debt ceiling almost immediately.

QE3 will come exclusively through a board vote from the Federal Reserve governors.

KramerDSP
08-08-2011, 04:02 PM
*QE3 has nothing to do with the debt ceiling. The FED injects paper into the economy without it showing up on the Congressional budget.

* = could be wrong on this

Man. We are so fucked.

libertybrewcity
08-08-2011, 04:08 PM
newmont was doing well today. a few other gold stocks were as well. i wish i had some physical metals though.

Agorism
08-08-2011, 04:09 PM
*QE3 has nothing to do with the debt ceiling. The FED injects paper into the economy without it showing up on the Congressional budget.

* = could be wrong on this


You're wrong on that. When QE3 occurs it gets added to the national debt.

mello
08-08-2011, 04:11 PM
My Apple stock is getting brutalized. It dropped close to $50 in the past couple days.
I'm glad I've got eleven 1 oz gold coins though.

Agorism
08-08-2011, 04:14 PM
The Government issues debt (the seller), and the Fed purchases it (the buyer.)

If there was a debt ceiling limit, the government would not be able to sell the treasury bonds to the Fed. QE3 will be buying treasury bonds at a very rapid pace, and getting us to the next debt ceiling hike in a very short time if implemented.

Kelly.
08-08-2011, 04:27 PM
does anyone know how the average person can tell [verify] that the federal reserve is buying government bonds?

is it something that can be seen relatively quickly? or is it only reported once a quarter or something?
i am wondering so that when (not if) it happens i can prove it, and send out this info to people i care about (that may not necessarily be paying attention).

<--- gets DOW 11,000 hat out.
rally on wayne, rally on garth :p

Seraphim
08-08-2011, 04:29 PM
Yes - and then once a commodities sell off flattens out...the panic will flood all of those dollars into commodities (real assets)...Your scenario would unleash 6000$ gold and 500$ silver.

You get the point.


On the other hand, if they do announce QE3 and the markets continue to drop, complete panic will break out.

Acala
08-08-2011, 04:36 PM
does anyone know how the average person can tell [verify] that the federal reserve is buying government bonds?

is it something that can be seen relatively quickly? or is it only reported once a quarter or something?
i am wondering so that when (not if) it happens i can prove it, and send out this info to people i care about (that may not necessarily be paying attention).

<--- gets DOW 11,000 hat out.
rally on wayne, rally on garth :p

Personally, I think the Fed buys into treasuries surreptitiously through Foreign Central Banks and investment banks to keep the prices up. Right now would be one of those times.

Agorism
08-08-2011, 04:37 PM
Personally, I think the Fed buys into treasuries surreptitiously through Foreign Central Banks and investment banks to keep the prices up. Right now would be one of those times.

LOL

I can see them doing that too.

ItsTime
08-08-2011, 04:41 PM
CNBC telling everyone NOT to sell. I expect another 1000 to 2000 drop by the end of the month.

Kylie
08-08-2011, 05:05 PM
I have a question.


If I'm holding newer(80's and 90's) US mint gold coins that have a face value of just nickels, dimes and quarters, is their worth going up? Will it be counted in their weights(in gold) or will they just be worth a little more than face value?

I ask this because I don't honestly know what I am sitting on.

purplechoe
08-08-2011, 05:06 PM
http://www.theymadoffwithyourmoney.com/images/tarp.jpg

Cowlesy
08-08-2011, 05:09 PM
I have a question.


If I'm holding newer(80's and 90's) US mint gold coins that have a face value of just nickels, dimes and quarters, is their worth going up? Will it be counted in their weights(in gold) or will they just be worth a little more than face value?

I ask this because I don't honestly know what I am sitting on.

Well a 1/4 ounce gold american eagle coin...APMEX will buy it off you for about $435 right now it appears.
http://www.apmex.com/Category/293/Gold_Eagles___1_4_oz_2011__Prior.aspx

Kylie
08-08-2011, 05:25 PM
Well, I have a few mint sets of our coins(penny, nickel, dime, quarter) but they're composition is not gold. The smaller denom are copper and nickel, and the bigger are silver.

Didn't realize that. http://www.labusas.org/forum/images/smilies/icon_confused.gif
Most were a gift, so I didn't look it in the mouth, ya know?


But the silver eagles are solid, right?

I think I only have one or two gold coins, and they are recent. Hell, I don't really even know if they are gold. I'll have to look them up now.


Thanks for the link!