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Tom Rinaldo

(23,191 posts)
3. It ultimately doesn't matter if yesterday was a leading indicator or just an omen
Tue Feb 6, 2018, 01:44 PM
Feb 2018

Unless the growing pervasive sense that we have left normal behind ends, not much separates us from drastic market instability and heavy losses. Under normal circumstances normal fundamentals would prevail. When normality is lost fear drives markets, and fear can erode any set of previously healthy fundamentals.

It is not only an actual loss of stability in American society and government that can take us over that brink. It just requires an erosion of confidence that American will remain stable that could set off that slide. It can take far less than wide scale social unrest to trigger that. A growing fear that the American government will blunder into another Korean War, a looming major league constitutional crisis should the American President defy a court subpoena to give testimony, a terrorist incident whether from the domestic right or external that is mismanaged and politicized, public disclosure that actual vote tallies have either been tampered with and/or can not be prevented from occurring with our current technology, many many destabilizing events can be potentially foreseen. When that those type fears grow individuals seek to cash out of the market and foreign governments either look for safer harbors or panic further grows if none can be identified.

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