

Ask HN: Dow down over 300 pts. - reechaurd

http:&#x2F;&#x2F;www.cnbc.com&#x2F;<p>Are public markets finally breathing?<p>Major market around the world down with Chinese number, Argentina Pesos&#x2F;USD spread.<p>Where do you guys think the market will go from here?
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hacknat
Nah...

It has long been in everyone's mind that China has to eventually unwind its
currency from being pegged to T-bills.

It serves China's interest (as well as everyone else's) to do this extremely
slowly (decades). Bumpiness will always be a factor though, and apparently
someone, somewhere, knows something the rest of us don't.

When the Yen and Yuan correct by going up against the dollar, even slightly,
it results in reduced quarterly earnings for most Western companies who have
contracts spelled out in foreign currency but have to file their reports in
dollars. Most solid businesses don't mind too much though, because it usually
means increased earnings in a year.

Wall Street is a pricing machine for "right-at-this-moment" though, so they
will recede whenever a round of Q-reports is set to be reduced. My suspicion
is that even if there is relatively brutal correction this weekend that it
won't result in anything other than a short term halabaloo about nothing. 2014
is set to be a great year economically, even Krugman thinks so. However, these
things do have a history of getting ugly quick for no-good-reasons; if a big
enough heavy-weight starts to panic it could get bad.

This is why Reserve Banks do these things on the weekend.

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aBcDf
a version of Jacky Ryan: Shadow Recruit?

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hacknat
???

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rajacombinator
i haven't been following markets much over the past year, but most likely this
is a bit of a "managed crisis" that will be used to justify the next round of
QE or whatever. this bubble still has a few years to go. look for a timed
crisis near the next presidential cycle.

