Why the FUCK are markets so fragile that a simple virus totally wrecks them...

why the FUCK are markets so fragile that a simple virus totally wrecks them? Is this an inherent flaw in the free market system?

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Because 40% of our GDP is financial trickery.
Otherwise, it would be fairly stable.

What’s wrecking the markets is international shipping is fucked and all the boomers have dumped their 401ks out of stocks and into bonds.

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They were going to get wrecked even without the virus because debts are off the charts.

The virus is just the pin prick. Now you get a chain reaction of companies going bankrupt due to too much debt and several months with no earnings.

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Is Trump gonna bail them out?

Hope not, bail out just kicks the can down the road.

He would have to bail out China and Europe too. They have even more debt. We're going to have to ride this out I'm afraid. I'm just worried ti might be a depression.

>Free market

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Markets were already due for a crash this decade, the virus just help speed things up immensely.

free market doesnt work
this has been already proven by karl marx

i was right and you mother fuckers better have some gold

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It's because the virus was made by the Chinese.
China is totally fucked their banks are going bankrupt and money is leaving that country fast as hell. The markets don't give a shit about the virus it gives a shit about the collapse of China and their cheap labor.

Its almost like having almost all manufacturing done in one country is a bad idea

It's not some magical "markets", it's bunch of idiots who have no understanding of anything else than economics and investing.
When media is dumping out unlimited amount of virus news, these idiots think that world is ending and it's safer to take their investments out.

It's when you realise that "markets" are just bunch idiots trying to understand world and current events, you can make millions.

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This fucker is a scammer. Gold is bullshit. Anything should have value with inflation.

Its supercomputers making 90billion trades per second. Its not some dudes investing anymore its highly optimized software driven on high perfomance hardware grinding money out of the virtual market.

Look it up all major banks and hedge funds have this A.I investment system because its highly profitable.

You are wrong its software doing a huge amount of trades per second on options and everything else all the time. A physical person investing is a minimal part of the financial world. You are living in the 1980s

ok. so why are the supercomputers crashing the markets?

>Gold is bullshit.
up 44 dollars today

>This fucker is a scammer.
he's right, just don't buy mining stocks from him

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They are taking out profit now. The market has been hugely bloated now the software is sensing a downturn in company profits and is selling assets before they hit loss. Its banks and hedge funds competing to sell high.

Primitive. Treat viruses as real, !

I have been developing one of those, so called "trading softwares" and I can assure you that those bots/softwares are just following curve and trying to predict according to hyperparameters generated from that curve.

There is no understanding of world events or anything else deeper behind those softwares. There is of course constant sentiment analysis and bunch of other crap like that, but it's all about human stupidity and following overall course changes created by huge trades.

For an investor the big question now is when is this capital that is being taken out of the market going to be coming back. Its a fine balance. The money is not going away and the software is itching to put it into stock and options but its too volatile now. They have no other option than putting the money in at some point because financial investment is the only thing that gives solid profit now.

>he fell for the nothingburger user
See you on the other side, user.

No you haven't you are full of shit. Its a highly specialized and also a secretive field. Mostly based in the financial capital of the world aka. the Us of the A.

Anything you say my friend.

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I remember this news story from a few years back where a software genius found a way to "read" the way these systems operated by the financial giants function and made a program that invested accordingly.

He was prosecuted and penalized for market manipulation all the while the big players do the exact same thing all of the time. Its a monopoly.

The market is gambling, and is run on confidence. Low conficence caused by panicing causes markets to loose value.

The Corona Virus is ~10x more deadly than the regular flu (debatable), but is nowhere as deadly as the Spanish Flu was.

The response to Covid-19 is a test-run for the inevitible outbreak of Spanish Flu 2.0. If we can't stop Covid from spreading, we are fucked when a real flu comes about.

It is this large proactive reaction to COVID that makes peopel nervous, panic, and destabilises the market.

This is a flaw wtih free markets. The invisible hand is sometimes a wanker.

Boomer 401ks and IRAs control the market. Your algo traders work off the moves boomers make to scalp pennies. Boomers are dumping stocks hard.

Because "globalization" and "free market capitalism" are buzzwords that end up meaning "let's centralize all our critical and essential manufacturing in china".

Yeah the latest is these etf fund idiots that buy the etf that has a selected amount of stock. Those stocks end up being overpriced as shit and making a bubble in the market. ETF is marketed as an easy way to invest and "risk free" but that is just the marketing. The scheme will hold as long as there are normie idiots pumping money into these things. ITS THE NEW SAVINGS ACCOUNT!

>free market system
Please explain how the world has a free market system
Thanks in advance

This is what happens when you allow private individuals to decide these things.

Because they are already overinflated by financial assets due to central bank keynsian retardation.

All that's missing is the parentheses around private individuals and you are totally correct

A technocracy would be much worse. Professionals and engineers are not decision makers they are drones.

High efficiency means there is no slack.

Thanks rabbi your thoughts are noted

But its true. An engineer deciding on things leads to bankruptcy and non efficient hierarchy.

>This is what happens when you allow jews and women to decide these things.
I fixed it for you. If you ever wondered how empires fall.

This. If the quarantines last a month or two more, SMEs across China will go bankrupt. Banks will try to stem the flow but the money is in the OBOR initiative. A ton of countries arent even expected to pay back or can only trade land. Their liquidity is toast

The market has been overvalued for years! Institutional investors have been going crazy with cheap credit and fed money for awhile.

This is just getting started. I expect most of the big retail stocks, banks, etc. to fall more in this correction. That being said... there are still some winners... look out for oil and gold

That being said... I've been making money all week *shrug*

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The volatility right now is because the market had expected China to get fucking rekt but China is already recovering. And now the US looks like it's about to get rekt which the market wasn't expecting. So those are the world's two biggest economies that are at risk and everyone was wrong about.

Yeah GM went from strength to strength when the beancounters over-ruled the engineers

desperate pathetic poor fag here... is it worth looking into trying to make money from all of this with a starting investment of say, £50? i highly suspect i should be investing at least £1000 to be honest

Because most of the market is run by bots and ai.

I hope companies like Apple and Amazon get hit hard and all the scumbags making all their electronics for cheap in China but selling at high price in the west.

>Why is the market so fragile
>Literally 10 Threads how corona will kill everybody
People are scared and try to sell their shit.

what if they're lying about recovering and are actually freefalling into economic collapse?

Oil is going down for a while now but the rebound is going to be huge. Be on the lookout for smaller companies that have good profitable fields. Their stocks are tanking now in the panic modus so the rebound will be glorius when people realize that demand is not going permanently down in any major manner.

Because it’s not about the virus. It’s about orange man incompetent. The only way to derail Trump is to tank the economy.

Fucking Fed needs to burn.

An "engineer" deciding on "things". Very specific... A technocracy is not about engineers leading everything, it's about giving power to people with actual expertise on the field they're making decisions on, which is pretty reasonable I might say... but nope, not in this backwards democracy hell

Soon. Wait for the bottom and buy. Then the money will be made.

But we are not there yet!

Also flight companies that survive this turmoil are going to be super strong in the upturn.

Fucking based. The global economy is a sham.

will be looking toward micro-investments in oil and gas over the next weeks, ty

A professional can be anything. Its like people with a really narrow perspective operating on the premise of only knowing something about on thing. Leaders need to be visionaries who see a bigger picture and combining many different approaches. Engineers and scientist are rarely capable of this. This is why we have leaders they know how to lead.

its a feature, not a bug

>free market system
Fucking hell, you typed that like you actually believe it.
What part of this phoney economy was ever, and I mean EVER based on free markets?! Oh, let me guess, interest rates based on a monopolistic grant by government instead of, oh I dunno, the MARKET rate based on SAVINGS, is somehow indicative of a free market system?
Fuck this board. Just full of morons on top of morons

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Yes, yes, the "market" is totally dictated by natural effects and it wasn't all some plotted shit since day 1. Good goy.

He was warning people about the housing market crash at mortgage banker conventions but they didn’t listen.

They didn't update antivirus database .... what a mistake !!

Shipments are moving again so while they might be fudging how quickly they're restoring production they're at least partially back online already. Compare that to the US where we've decided in SF to start shutting down offices and working from home for the foreseeable future. It's being done on a Friday to lessen the impact of the news cycle.

Did you know the General Systems Theory was originated in biology and it's now used in economics?
Not every field is about micromanagement.

Also Angela Merkel is a chemist, Xi Jinping is a chemical engineer, Margaret Thatcher was a chemist too... so much for being "rarely capable"

We've literally been bailing out the economy since 2009 with the brief exception of a few months about a year ago

>Angela Merkel
Great example of how engineers should never be allowed to manage anything as they'll fucking ruin it.

All of the people you mention are outliers not the epitome. So your argument is self defeating. Those people lead because they have the abilities to do so its not typical for a "professional".

So comfy to claim things in retrospect. Back when economy was booming noone said shit.

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Way to cancel an argument without addressing the main proposition.

But he actually is. He had no reaction to the virus and kept saying it was ascam but he was only worried about his masters' stock markets.

No it isn’t. It’s doing what must be done.

>why the FUCK are markets so fragile that when the place where all of our cheap shit gets made essentially shuts down for months totally wrecks them?
we need to return to isolationism.
the bandaid has been ripped off and the market crashed; there's no downside now.

Good, we need something to wake people up.

If they were good at their field of study they wouldn't have gone into politics

I can see your point, though. A person in which power is concentrated must be able to know a little bit about everything and understand their social and economic reality.
Some would argue that Sociology and Economics should give you that expertise, but then again, particularily sociology faces a lot of critizism, because no system is perfect.

I do get your point, and I somewhat share it. I still think technocracy is the way to go, but we need to reform our education to that end, for starters.