The solution then was to extend Bank Credit Facilities thats how Alan Greenspan Ronald Reagan and robert rubin the plunge Protection Team or that working group on finance the president S Working Group on finance decided that they would solve this problem by not punishing or reforming but expanding the credit line of these banks so they did exactly what they were doing but on a bigger scale and then we have of course another major move down in 1989 we had a bomb crash more or less 9093 we had the dot com crash in 2000 we had the 2008 subprime crash and each one of these crashes were caused by the exact same thing over indebtedness too much leverage and no accountability no than foresman of regulations by the f. C. C. And then send in others and each and every time the policy from the Central Banks is to expand credit line and say do it again but do it bigger and now in 2020 we. Of now some more thing happening all over again its entirely predictable entirely preventable but as restraine
Joe, whats this about what do you think is going on in the market, joe . I think this is an asbestos luts perfect technical correction that were experiencing and we have been experiencing from the beginning of the month i talked about it with you i dont think the time is now to be stepping in and thinking that its over. I agree with your opening. Tlp is further weakness that lies ahead for the market. Lets keep in mind theres significant weakness in germany. I know jim talked about apple being higher for the day as a good positive indicator. Apple should be higher wasnt able to sustain that its in a bear market. As long as apple remains under some pressure, you have to believe the overall market will have a bit of its own problem, dont you think. Possibly. First of all, we needed a correction whether its because the case, the daily case in europe are now ahead of the u. S. Or the debates next weekend or the election coming up we needed the sell off this is great thing. Investors have t
Less. The 30 year yield is interesting, it had a six basis point move earlier, probably the largest we have seen in any part of the curve recently. I want to point to the European Bank stocks index. It isn 6. 3 index down 6. 3 on the news of how banks are money laundering. An agency coming out saying this all proceeded their 2017 deferred agreement. We see how it progresses through the month. One stock to point to is universal health services, just an example of how Health Care Insurance and hospitals in particular are selling off today. Lets bring in Bloomberg Intelligence chief equity ategist jason Martin Adams Gina martin adams. Gina, if that had been your contention, how do you add in the death of Justice Ruth Bader ginsburg and how that will play out in the coming weeks and months into this market . Gina i think we already have a market that is pretty nervous about what is going on in washington with respect to the upcoming election upcoming election. Ago, we wereonth really prici
Election story, and whether the market is saying we want to seek some safety and the dollar is the place to do that. The yen was trading lower against the dollar a little bit earlier on, but eurodollar now trading with a 1. 17 handle. What youre seeing in germany, u. K. , canada, and the United States is quite a sharp curve flattening, pivoting around the tens. The 30s are down quite hard in terms of the yield, so a big bid at the back end of the bond market. Alix all part of that is the virus story you were discussing, so lets get to that. U. K. Chief scientific advisor warning of 50,000 new cases a day by midoctober if urgent measures are not taken. Cases are increasing. Hospitalizations are falling. Deaths unfortunately will follow that, and there is the potential for this to move very fast. At the moment, we think that the roughly is doubling every seven days. If we dont do enough, the virus will take off. If we do not change course, we are going to find ourselves in a very difficu
Happened. The bears breathe a sigh of relief. But is it all over as soon as it started . The cash trade is just an hour away so lets see if this has legs. Here are your top headlines. With thes a big blow nasdaq down almost 5 . The s p severs it steepest drop since june. And suffers its deepest drop since june. Bill ackman tells market jitters the National Bank to challenge santander. So, a lot going on today, as well as german factory orders. They are now out. Ofth over month, the gain 2. 8 not nearly as much as a survey, which was 5 . Over the prior number, which was 27. 9 . Yearoveryear, its a drop of 7. 3 , which is worse than the survey drop of 6. 0 . And a slight improvement from 11. 3 on the prior numbers. So during factory orders german factory orders not shining light on this. Just under an hour away from the start of cash equity trading. Futures are down in europe. And remember, yesterday we were looking at gains on the dax of more than 1 . Then we closed losses of more than