Per Zero Hedge:
Moments ago, without any specific catalyst, US equity futures just plunged when in thin, illiquid tape, a seller took out about 30 consecutive bid levels and as of last check, the ES was down as much as -48 to just 1923, or 2.5%, after being down a modest -13 minutes ago.
It is unclear just what is going on, or whether some prop desk or hedge fund just got tapped out, and/or how the Fed will react but the last time we had action like this, the Fed confused a liquidating SocGen trader for an economic collapse, and cut rates by 75 bps in January of 2008. This time it does not have that luxury.
So while we await the Fed’s response we watch in stunned amazement at a meltdown the likes of which we have not seen in years. Alternatively, if the Fed has nothing up its sleeve, the good news is that limit down for ES is just about 1870, so only 60 points more.
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Update: just when it seemed that a BTFDer had emerged, even more focused selling took ES to new lows, and as of moments ago ES was down as low as 1913, down a whopping 58 points, and officially in 10% correction territory. Also, we are now down to about 50 points from limit down.
The index in question, ESU5, is composed of S&P 500 futures. The drop means people are devaluing the S&P 500 in the future. That means the present value is also lower. If this move holds until morning, expect a big drop in stocks when the market opens.
This week will be entertaining.
Depends on how long ‘the powers that shouldn’t be’ want to keep this Ponzi floating. If they’re not ready for a crash, they’ll do something to stop it. If they’re ready for a crash, this will be it. If they’ve lost control of it, hold on to your hats. It’s going to be a memorable ride.
“Black Monday” – Shanghai Composite Goes Red For The Year, Wiping Out 60% In Gains, 2000 Stocks Limit Down
Schiff sat down with Reason’s Matt Welch while at FreedomFest 2015 to discuss the dollar, his support of Rand Paul, and his argument that we are already living in another stock bubble.
“The mainstream—the investors, the government, central banks—they never see a crisis until after the fact. And then they go back and they say, ‘Well nobody could have possibly predicted this. This was a complete random occurrence that had nothing to do with our policy,'” says Schiff. “They never understood the cause of the bubble that burst in ’08. They didn’t understand the Fed’s role in creating it, so they don’t understand that the Fed is simply exacerbating all the problems that everybody believes they solved.”
SCHIFF INTERVIEW PUBLISHED ON JULY 20, 2015 HERE:
The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, is amultilateral development bank operated by the BRICS states (Brazil, Russia, India, China and South Africa) as an alternative to the existing American and European-dominated World Bank and International Monetary Fund. The goal of the bank is to “mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries”. The bank is headquartered in Shanghai, China. Each participant country holds an equal number of shares and equal voting rights, and none of the countries will have veto power. There will be 1 million shares with a value of USD 100 000 (initially USD 500 000 shares), 20% of which will have to be directly paid in to the bank in the first 7 years after entry into force. – SEE MORE
We provided you with a lot of information here. We hope this ride works out for your best interest.