Tasmanian Times

The individual has always had to struggle to keep from being overwhelmed by the tribe. If you try it, you will be lonely often, and sometimes frightened. No price is too high for the privilege of owning yourself. ~ Friedrich Nietzsche

The individual has always had to struggle to keep from being overwhelmed by the tribe. If you try it, you will be lonely often, and sometimes frightened. No price is too high for the privilege of owning yourself. ~ Friedrich Nietzsche

Economy

The Oracle’s Market Update (Morning)

Dow Jones down 500 points. The tech-heavy Nasdaq index fared even worse, slumping 5 per cent. These numbers constitute what brokers generally call a bad day on the market.

Heavy trade across the board saw no one sector spared, with margin selling fuelling the crash. And it wasn’t an exercise in switching to safe havens either – oil fell 5 per cent, gold and silver hardly budged, and with 10 year treasuries well under 3 per cent, there’s not a lot of enthusiasm for switching to bonds.

No single catalyst sparked the trouble. The usual culprits (Euro debt, soft employment numbers) played a part, but there’s a real sense of doom plaguing Wall Street.

Back home, margin lenders will be on the phone already, with the big banks, BHP and some of the other ASX100 members likely to be smashed on opening. As trade progresses, we’ll find out whether this is a serious bear market, or just an overreaction.

Bargain hunters could save the day in afternoon trade, but we should still see another 100 point loss on the All Ords. Bad news from anywhere would push that out to 200.

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2 Comments

2 Comments

  1. Peter Smith

    August 4, 2011 at 2:40 pm

    How convenient for Gunns to suspend trading on the day of a blood bath on the ASX. I hope that the reasons for this are valid or the company can expect to be liquidated next week.

  2. Steve Biddulph

    August 4, 2011 at 1:56 pm

    http://www.businessday.com.au/business/this-time-its-serious-20110805-1ie4t.html?rand=1312495362432

    Read any of the world’s press this morning and its the same story. The crash that I was writing about a couple of weeks back, as looming in 2012, is starting now.

    Community self reliance is going to explode upon us, as we figure out how to feed, house, clothe, heal and teach our children, and the skills of saving a third world country will be needed to save our own. I’d urge you to get your super and savings into safe options. But more than that, we need to work together to really think about how this will play out.

    We need to get talking, and working on a sustainable island without cash from elsewhere. If we do it right, can be an island of hope and refuge in a world in chaos.

    The forest industry is dead, Gunns are dead, Riotinto and others may soon follow. The retail sector will dwindle severely down to things people actually need. Take a walk in a shopping centre and you will notice how little there actually is that fits that category. Farmers markets are about to explode into prominence. Food security is the most pressing issue, along with keeping poor and vulnerable people warm and housed. Forget the Labor party conference, (in fact, forget the Labor party) we need a people’s conference.
    Save us Peter Cundall !!

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