Crude Collapse / Stock Washout / Deflation / Real Estate Fallout

[Rareearth]

Always interesting debate, what will happen, when and what should we do?

- if the fed chairman is fired, I would expect no more interest rate hikes

- if banks start to pull money in, or no more printing, doesnt that creat a environment for inflation?

[biglentil]

If cash is king than what is gold? And we were told its a barbarous relic.

[helmsdale]

Looks real ugly today...

Dow closed down 653 or 2.9%. Trendline is pretty much down down down. BTFD seems to be failing as of late... I have to wonder how this works out over the medium to long term. There are a pile of boomers who are in the latter stages of their retirement planning, and if they pull out of this thing and place into more secure(what is really secure these days) investments, will they be coming back?

S&P500 is pretty much sitting at 20% off its highs...
DJIA about 19% off its highs.
Nasdaq down just shy of 24%
TSX down just shy of 17%

PPT is going to have a hard time bolstering this one...

[helmsdale]

[errolanderson]

Planned U.S. Federal Reserve rate hikes in 2019 may now have gone the way-of-the-dodo-bird. Bank of Canada will receive a dose of reality.

Central banks may have to cut rates in the new year should the economic fallout intensify (IMO).

[helmsdale]

I agree Errol... still blows my mind that anyone thinks there just isn't quite enough cheap credit floating around out there to keep the economy "stimulated". At some point you gotta pull the life support and see if the thing can actually survive on it's own...

[errolanderson]

I agree Errol... still blows my mind that anyone thinks there just isn't quite enough cheap credit floating around out there to keep the economy "stimulated". At some point you gotta pull the life support and see if the thing can actually survive on it's own...

True . . . but this economic craziness is the direct result of central bank can-kicking over many years and the inability of the market (and politicians and voters) to face-up to the eventual reality of debt and its consequences. U.S. public debt is now approaching $22 trillion . . . servicing the debt alone is now approaching the cost of the entire U.S. military. Trump spending is up more than 20%. Insane . . . .

The next generation will have a totally different view of how to handle money in-my-view. Consumerism may be under fire . . . .

[errolanderson]

Here’s a history of the largest 4th quarter stock market crashes of all time . . . .


1. Great Depression 1929. 41 percent drop

2. Lehman Bros Bankruptcy 2008. 35 percent drop

3. 1987 Stock Market Crash. 30 percent drop

4. Great Depression 1937. 26 percent drop

5. Trump Trade War 2018. 20 percent drop

6. Pearl Harbor Bombing 1941 18 percent drop

[sumdumguy]

Calgary Herald Today: The Great American Conspiracy to Sabotage Canadian Oil.

[the big wheel]

Calgary Herald Today: The Great American Conspiracy to Sabotage Canadian Oil.

Could be true.
But who cares they only can do it because we are so dumb here.
All that potential wealth we have without a grand plan. Short sighted petty political bickering bought off politicians etc etc.

Get the pipelines built, set up more upgraders, modernize the railways go hard expirting oil have a low domestic price policy making us the favourite place to develop manufacturing, technology and the important things for the future. Hell maybe even give priority to agriculture or how about us producers having a say. How about a fast moving train coast to coast. Let's get with the times.

[Oliver88]

Calgary Herald Today: The Great American Conspiracy to Sabotage Canadian Oil.

The treasonous Canadian radical environmentalists who oppose pipelines and fracking are very helpful to sabotage Canada.

[ajl]

I agree Errol... still blows my mind that anyone thinks there just isn't quite enough cheap credit floating around out there to keep the economy "stimulated". At some point you gotta pull the life support and see if the thing can actually survive on it's own...

I think most know that the patient will not survive without stimulus for very long, but the stimulus will eventually kill the patient as well. Screwed either way.

[AlbertaFarmer5]

The treasonous Canadian radical environmentalists who oppose pipelines and fracking are very helpful to sabotage Canada.

And if one follows the money to see where their funding comes from, it explains a lot.

[errolanderson]

Shanghia SSE Composite Index decline

December loss. 9 percent
Entire 2018 loss. 28 percent

Signs of further manufacturing slowdown in China pressuring day 1 of new year global equity and commodity markets. Rocky start to 2019. . . . .

[ajl]

Shanghia SSE Composite Index decline

December loss. 9 percent
Entire 2018 loss. 28 percent

Signs of further manufacturing slowdown in China pressuring day 1 of new year global equity and commodity markets. Rocky start to 2019. . . . .

This is the BIG news story of today. China is in recession. What is the value of Canadian real estate now? Look out below.