Insider

Mr. Market Melting Down

Thursday, May 20, 2010, 7:58 AM
Enroll NowFor enrolled members only. Enroll or Sign in to read the full article.

Here we are, about an hour from the market open in the US, and European markets are down hard, while US stock futures point to a miserable open.

I'm opening this thread to follow the day's activities.

As I write this, S&P futures are down -23.50 and Dow futures are down -156.

Gold is down a further -$15 to $1179/oz, and oil is down a full -$2.17 to $67.70.

Sometimes, history rhymes, and sometimes it does more than that.  This is almost exactly a repeat of what happened in Fall 2008, right down to the last detail, including a widening TED spread.  I warned of this recently in the currency swap thread, and I am feeling confirmed that there is a generalized loss of liquidity somewhere, probably in the European banking system.

Something is broken.  We don't yet know what, but it doesn't really matter what it is.  We are in the midst of another credit crisis.  You'd better buckle up.

 

Enroll Now
Or Sign In with your enrolled account.
Endorsed Financial Adviser Endorsed Financial Adviser

Looking for a financial adviser who sees the world through a similar lens as we do? Free consultation available.

Learn More »
Read Our New Book "Prosper!"Read Our New Book

Prosper! is a "how to" guide for living well no matter what the future brings.

Learn More »

 

Related content

80 Comments on Mr. Market Melting Down

Enroll now or Sign In to read all member comments.