Absolute Carnage on the FT-SE 100 expected later today.

Doctor_Gloom

It looks like meltdown is on the cards for the UK stockmarket later today (Friday) . I hope you all took Asheron's advice and fully converted your portfolios to Gold to avert the oncoming financial catastrophe.

Good luck everyone, we're all in this together, tin hats at the ready!

Masomnia

Erm, yeah, but markets fell dramatically yesterday/today/20th and so to an extent did gold, so there may not be as much correlation as you're suggesting.

Sovereign debt on the other hand did well.

Doctor_Gloom

Masomnia wrote: »

Erm, yeah, but markets fell dramatically yesterday/today/20th and so to an extent did gold, so there may not be as much correlation as you're suggesting.

Sovereign debt on the other hand did well.

Oh how I admire the British Bulldog spirit when confronted with overwhelming adversity.

I fear this financial meltdown will infect the UK housing market very shortly. The 2nd stage of the housing crash can only be just around the corner.

Doctor_Gloom

Hi, does anyone know how much more the FT-SE 100 index has to plunge in one day before panic ensues and the index is suspended to avoid civil strife and one almighty bloodbath on the streets?
I believe the figure in the USA is a daily plunge of 10% in the Dow Jones, is there any equivalent figure for the UK?

Doctor_Gloom

On a scale of 1 to 10 just how worried is everyone about:

1. plummeting stockmarkets around around the globe that decimate the value of our pension funds and savings
2. the intense rumblings of hyperinflation
3. artificially low interest rates which will have to go up soon and at which at their present level still fail to promote a sustainable economic recovery.
4. an increasingly worthless Sterling currency which is nothing better than monopoly money.
5. colossal job losses, savage spending cuts and massive tax hikes.

I'm certainly worried. It seems that the alleged recovery has been one big fake.

Generali

There is no actual rule as such but the LSE will suspend trading in a share or in the market as a whole to maintain an orderly market. Most likely would be that if spreads (the difference between the buying and selling prices) widened too much across a lot of stocks the FTSE would suspend trading for a few minutes.

The impact of this would be to cancel all outstanding orders so people would have to input new ones. That would stop people who had orders to buy at very low prices buying when they perhaps didn't want to do so.

They'd then open the market again. If it again fell very quickly, other measures would be put in place to try to maintain an orderly market, for example banning some sorts of electronic trading.

If that didn't work then presumably the market would close for the day or even longer. The thing to remember is, all the LSE would be trying to do is maintain an orderly market, not to actually prevent the values of assets from falling. Ultimately if people will only pay a quid for something and someone is prepared to sell for a quid then that's all that item is worth regardless of what else you do to prop up the market.

Numpty_Monkey

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pjread

2 and 3 are concerning, 5 is necessary, 1's only really an issue to those directly holding affected equities (ok, a fair few...) who can't just hold them for 5+ more years, and ditto pensions affected only for those approaching retirement.

4 is a bit overstated, but should help exports so actually have some beneficial effects.

I concur with the sentiment though, nothing's recovered, it's been artificially propped up at too great a cost in my opinion.

RDB

Doctor_Gloom wrote: »

On a scale of 1 to 10 just how worried is everyone about:

1. plummeting stockmarkets around around the globe that decimate the value of our pension funds and savings
2. the intense rumblings of hyperinflation
3. artificially low interest rates which will have to go up soon and at which at their present level still fail to promote a sustainable economic recovery.
4. an increasingly worthless Sterling currency which is nothing better than monopoly money.
5. colossal job losses, savage spending cuts and massive tax hikes.

I'm certainly worried. It seems that the alleged recovery has been one big fake.

Number 4. an increasingly worthless Sterling currency which is nothing better than monopoly money.
Well all currencies are going down as well.
All major currencies have the printing presses in overdrive. The world is flooding with paper currencies. All this extra currency money has to be soaked up like a sponge soaking up water. It means higher prices for everything.

It means lower standard of living. Less purchasing power for the currency we hold.

What can you do? Buy silver bullion, then watch it go up to meet all that extra currency being created out of thin air.

borntobefree

Terrified:eek::eek::eek: Keep you hands in the car - here comes the second dip:eek: