Skip to main content

tv   Boom Bust  RT  January 25, 2022 1:30pm-2:01pm EST

1:30 pm
date, suppose the brand been bus. next, we check in with the crew for all the latest goings all from the business were i'll say close, this is art. ah mm. with bring you the very latest every out the day. this is all now snow from everyone here with her, all those driven by dreamers shaped of those with
1:31 pm
there's sinks, we dare to ask for may. oh yeah, we should all be may or may we should all be angry because of what's going on. right. can't understand united states history and the role that slavery play was already very formal institution. at a time, united states became a nation. it actually find the nation, the rise of capitalism clearly on the backs of slate. and it's laid down. if you have a great extent, you can't believe that really having the still stands and make no,
1:32 pm
i'm from the south. everybody know know what they're saying. to some extent, i would argue that we're still fighting the civil war in the south is winning with benefit room, but the one visit show you can't order minutes on bridge a board. and i'm rachel blevins in washington. coming up, the client started to bounce back after hitting a 6 month low. as the latest fell off head crypto market across the board will take
1:33 pm
a look at what's behind the latest losses and if they are expected to continue. and it's not just crypto us market, they're also struggling with the us. and he logging if worst week the pandemic began. and the nasdaq falling deeper into correction territory, we'll discuss it on that. then the united kingdom, economic rebound is in jeopardy, as it seeing if growth plummet to with lowest level in nearly a year. got a lot to get to look at started. and we lead the program with the latest from the world of crypto following a very rough few days for markets. it's the kind of news that has left crypto holders with massive anxiety since the week at the crypto currency market had a route, had lost around a $130000000000.00 of its value over 24 hours as the multi day sell off of major digital coins accelerated now bitcoin and a theory and are sitting about 40 percent and 50 percent from their respective all time eyes. and on monday,
1:34 pm
bitcoin drop below 33000 briefly its lowest point since july, according to coin metrics. but if there is any good news here on monday, bitcoin also finally seemed to stabilize around $36000.00. so what is happening and how much farther might coin another all coins fall? well, joining us now discuss our analysts and boom, boom, co host christy i and men, swan christie. let's start with you here. now we know it was a pretty rough 24 hours. so can you explain to us what happened? yeah, so crypto has been under pressure since the fed reserve looked to raise interest rates and the sell off in big tech stocks is prompting traders to go risk off, which included a lot of crypto names. and given the massive year that we've had in crypto with the quinn, adoption going mainstream to wall street, that is now playing out like a double edge sword. while having wall street hedge funds getting into bit quinn and others for great for the rally. they're not long term hardliners, and so crypto fell as hedge funds all over began to quickly reduce leverage and
1:35 pm
cover future margin calls. so a lot of volatility in big coin is nothing new. for long term traders, we've had 4050, even 60 percent broad as before. and while they are paying for is just a certainty with the quite as it is the only free market asset. there are no circuit breakers and cook demarcus. no market freezes because it crash too much in a day. no fed swooping in to save the day, but big coin is a direct reflection of the true supply and demand, which is what makes it so great. and that was just the case on friday. we saw market maker dow had they had a $600000000.00 liquidation on friday, but it was saved at the last minute by another whale who was willing to swoop in and buy a big chunk at a discount. so a $600000000.00 liquidation would have been a huge impact on the market if it did go through. but fortunately, the 7 siblings came in and bought a chunk of 338. so there was a lot of delivered in going on funds moving over to cash and all,
1:36 pm
but this was basically a much needed re balancing and the crypto market. because while no one wanted the rally to end, they quite did have a big gap to fill left over from july of 2021, which it did, which allow the technical chart to basically resolve itself. absolutely love to keep in mind there. when we talk about this, people do get spooked when they hear about these giant draw downs. now. bad bitcoin obviously the world's most valuable crypto currency. it plummeted. 20 percent since the beginning of the year in november. it was trading at a record high of $68990.00, but it's peers of actually fared much worse. isn't that correct? yeah, they actually have a mean the theory of 12, what 12 percent over the weekend. so that's a pretty tough 24 hours you were talking about the 24 hour period. but, but the reality is that slippers were watching this take place. if you went back to last november, remember it was all the sunshine and lollipops was all going to be great and it was to the moon. and the problem is, of course there's been correction in the market as christy rightly said. but that
1:37 pm
doesn't mean that if you're in big coin a, you're any theory him or you're in solano or careno, or whatever all coin you're in, that you need to panic. and i don't think the panic, by the way, is actually coming from people who believe in these technologies or who are really invested in them from the early point. i think what we're going to see are more and more people who are new comers to this phase. they know, know what's happening, it's all a scam and falling apart on me. and what we're also going to hear is how regulators need to step in and fix this. christy is absolutely right when she says that this is the free market is the only true free market that's left is in this space. and so right now, because it is a free market, you have players who get in and then they get spoked, or they don't like this news or they decide they're going to get out whatever the reason might be. and the market has volatility to it. that can be a bad thing. yes. when it starts to drop it, it's a very good thing when it rises very quickly and the, the reason for the volatility or the, the cause of the volatility has made a whole lot of people awfully wealthy. just like it makes some people awfully poor
1:38 pm
. even hit to the wrong time, so you gotta hold on and you and you can't freak out just because you're watching the market kind of go up and down. it will probably continue to drop a little bit. and christy to beds point there. you mentioned on the show actually last week that much of the sell up is coming from new purchasers. not the so called hollers. why is that point so important? it's important because a lot of a small hotel any is caused by the short term trade or the speculators. the new traders, the hedge funds a foam on trader those who are only in it for the fred, rather than what been said. people are holding it as an investment because they believe in the technology. because sure. given the last 24 hours a good chunk you can say, came from some long term crypto trade is operate on leverage to. but the cell was actually not fast enough to be a de leveraging domino effect that we've seen before. otherwise, we will see a cascade of orders, walls of oars. bitcoin fell and kept hitting new stop losses and triggering more margin calls. but that was not the case. we saw the funding rates are normal,
1:39 pm
not too high. so this wasn't like, traders were blown out of the markets. so this was a methodical unwinding of positions from funds, institutional clearing balance sheet for the new year. people who are freaking out all of the news. so it's unfortunate that this is a side effect of having a lot of flippers whole bitcoin. meanwhile, the proportion of big coin supply that has remain stationary for a year or more hit level not seen during the previous capitulation events. so that proportion is now about 60 percent, which is higher than after the march 2020 covert crash. higher than that, the end of the 2016 bear market. and higher than that of the end of the 2001900 barrel market when big point hit a low of 3100. so the current resolve among long term investors is still unshaken and hardly just continue to add to their position and glass note also confirm the presence of active haulers growing. so that is a nice thing to rely on despite these big impact that the institutional have every single time itself. it's just going to keep on going back into the hands of the real crypto community. yeah,
1:40 pm
that's definitely something that is good to keep in mind. now been, we've got about 30 seconds here. i want to touch on a point you made, which is that the cell off may not be over. how far do you think that will see bitcoin vol? well, it might not be over, right? we might actually see a test around the $30000.00 mark we might even get into the twenty's or all the way down to $20000.00. it absolutely could happen. but the point, the christie made about the flippers, the people who are in this for the money flip are the ones who are going to get hurt, but they're always the ones who are going to get hurt. they're doing it for the wrong reasons, is of their strategy isn't sound the one good thing about the, the price of all these coins going down is that if you want to get in and invest not so when you want to do with your money. but now is a good time to invest when you buy that depth because you hold it for 10 years and then see where you're sitting. now will certainly continue to keep an eye on it. boom bus, bent on and christy, i thank you both for your insight and give and us markets continued their downward spiral,
1:41 pm
spiral to kick off the week on monday with each of the 3 main indices, diving at least 3 percentage points throughout the day. and we're hearing a lot of talk about a dreaded market correction. now it should be noted after a turbulent start to the day, equities regain much of their losses, but issues still remain now coming off its worst weeks since the onset of the pandemic in march of 2020. the s and p 500 had officially fell by 10 percent since highs reached the beginning of the year. but it did re gain some losses mid day. at the same time, the tech having nasdaq is more than 15 percent below its recent highs in november, and the doubt is inching toward correction territory having fallen roughly 8 percent off its recent high. now the sell off comes as the leaders of the federal reserve are set to hold their 1st meeting of the year to talk about future policy with inflation in the u. s. rising, had its fastest pace in 40 years. now, all analysts are projecting for interest rate hikes. this year,
1:42 pm
the fed is not expected to move until march, and it should be pointed out that inflation issue. well, it's not a uniquely american phenomenon, as economy is worldwide are feeling pricing pressures. in fact, december 7 percent inflation may seem kind of paltry compared to huge numbers in a country like turkey, which is 36 point one percent inflation rate in december. as the lira has fall to record lows and incredibly easy monetary policy from the nation central bank in argentina, prices rose 50.9 percent year over year in december. the highest among g. 20 nations has price controls have not been having the intended in back. meanwhile, brazil has seen an inflation rate of 10.7 percent year over year as it faced the severe drought and a weakening re out outside of g 20 nations venezuela saw the world's worst inflation coming in at 686.4 percent in 2021, but since december, the month to month, numbers have remained in single digit. so joining us now to discuss is best selling
1:43 pm
author and founder of the bear traps report. lawrence mcdonald, laurie the pleasure to have you on the show today. i want to start with what's happening in u. s. markets because as we discussed they were down at 1.3 percent, and then a rally to kind of close out the day actually brought the doubt back into the green territory even after falling $1000.00 points. now we've heard analysts say their pricing in an interest rate hike and the fad is moving to an easy monetary policy. and that's why we're seeing all this action. what do you think in markets right now? well, thanks. it's great to be on the program. i mean, i've enjoyed the job, you know, doing all the job we run a bloomberg chat with about 650 institutional investors in 2003 countries. and it's all by side. so your hedge funds are mutual funds or pension funds. and we measure capitulation, and i'll tell you what this all started right around thanksgiving. the fed leaked to goldman sachs 3 hikes instead, a 2. and then maybe about,
1:44 pm
for another 2 weeks ago, there was another leak out of the bed to goldman again, for hikes instead of 3. so the fed is basically floating these balloons in terms of their withdrawal of accommodation in the markets has been pricing in a very, very hefty pullback of accommodation. and that's what's caused this capitulation sell up. but i will tell you that financial conditions behind the scenes are tightening far faster than you can imagine in so the fed is really playing with the serpent here. there's a real serpent in the market. financial conditions of beast in the market, and they're biting off more than they can chew. they're going to have to walk it back a little bit. so all the indicators we see in terms of new lows and the nasdaq in terms of, of put call ratio. we have about, you know, 20 indicators of will. capitulation, i think the lows are either in today or tomorrow of her tradeable bouts, especially in the tertiary names. you're your biotech, your ark names of those,
1:45 pm
those, those names really came out of the whole today. and we see a counter trend rally here starting today tomorrow, which will last several weeks. well, that really is notable, especially as we've learned that you know, chairman j. powell has worked so hard over the last year to keep everything steady with the markets to let them know that he is going to communicate. so it's interesting to kind of see that uneasiness. now at the same time, this is all happening during earning season, and you would expect this sell off to be indicative of poor results, but so far, nearly 75 percent of s and p $500.00 companies that have reported actually beat their estimates. so why is that not helping to relieve this volatility right now? you know, it's, it's so sad. the earnings mean absolutely nothing. in the 4th quarter of 2018, we had the best earnings corner we've had in probably 3 years. in the foot, the fed was promising full rate hikes in $2194.00 and they were promising also
1:46 pm
quantitative typing, which means reducing the balance, not just a brief reducing it. so the fed in the 4th quarter of 2018 was promising for rate hikes the next year, plus another 3 hikes in terms of quantity. exciting. so $78.00 hikes in the beasts in the market sold off stocks. the earnings absolutely middle incredible earnings results that quarter in we sold off 20 percent. the similar thing is happening right now. it just, unfortunately with the combination and with the game in terms of what, how much fiscal and monetary juice they put into the system of things like earnings are really backward looking and you have to look for the bottom line is the for when the fed over the last 3 peaks took it up to 4 rate hikes for $20.22. and they took it up into the they brought quantitative tie the on the table again. so this almost the same thing for 2080 if they walk that back to 2 likes, it may be a quantitative 20 out further in the future, not this year. ok, that's enough for
1:47 pm
a big, big rally. and i guess i know you're saying that we're going to see a bounce. we could see a rally, but there's no concern that this bubble is bursting here. and i got about 45 seconds. i do apologize. lar, true. well, the exactly the we have a counter trend rally the good last a couple weeks, but i think you wanna, for now, you want to sell the rallies in raise cash. and we could be in over the next 6 months for some with so much more difficult time. so enjoy the rally. love arthur. battle of the bear traps report. rev abby back. i appreciate your now so that was great today. thank you so much. thanks. and as tenses continue to build between the nato alliance of russia, the u. k is reportedly signaling that if a military conflict does break out between russia and ukraine, it would support sanctions that could include blocking the north stream to pipeline . and suspending mosque out from the swift international payment system. and this actually would not be the 1st time the u. k. has made such a proposal, in fact,
1:48 pm
back in 2014, following a u. s. supported government overthrown ukraine. the u. k. also reportedly plan to push the e u to block russia the use of swift, and then attempt to cut the nation off completely from the international payment system. now, rachel, it seems like, you know, we've heard a lot of this talk and what could happen in there's economic sanctions on the table . but if they were to cut off the swift bank, and of course the, nor seem to pipelines, does the west really have more leverage? and i mean, is this even likely to happen? you know, at the moment it seems like they are trying to come up with a number of consequences to kind of put in front of russia, even though russia has time and time again that they're not planning to invade. but at the same time, when you think of those consequences, we also have to remember what it would do to european nations and of the u. k, especially when it comes to cutting off the north stream to pipeline which they desperately need. and at the same time, if they were to cut russia off from swift altogether, it would teach russia to be even more independent, which is exactly what we have seen them do. with this entire continued campaign
1:49 pm
from the u. s. to try to isolate them. we've seen them turn away from the u. s. dollar go more towards gold, and that is exactly what's likely to happen. very interesting in time now for a quick break. but when we come back, the united kingdom has seen a drug flow to a near one year as low as the nation is struggling to balance back. we'll dig into those details as we're gonna break here. the number, the quote, the me ah, horace champs all down through here, calling this the larry over here. so your camps are always
1:50 pm
a little nicer than this. this is evidence of absolute poverty, despair. people in our city and other cities all across america are living like this, where at the original need and village that opened up in 2018 right now. there's 31 homes on the property. it's a little over 4 acres with $31.00 homes. and a community center, unfortunately, a lot of people don't make it out of edition more homelessness and i'm just really happy. it made it her dad you with join me every thursday on the alex simon, sure. i'll be speaking to guess in the world of politics, sport, business, i'm show business. i'll see you then.
1:51 pm
the air welcome back, while inflation and supply chain shortage to continue to take a toll, an increase in cobit 19 cases. also hit consumer services sector in the u. k, so any of your kind of growth to an 11 month low in january, the us market index came in at $53.00. now we will always note that anything above 50 represents growth, but it is still the lowest. the index has fallen since the u. k began lifting restrictions last year. now meanwhile, tensions with the you continue more than one year after breaks it was finalized. what are the main points of contention has been the northern island ireland protocol. now the top officials from both sides met and brussels on monday, following a week of talk between their teams. the u. k. has requested significant changes to the deal, noting that as it stands now, the required border checks for northern ireland treated as though it is no longer
1:52 pm
a part of u. k. in response, the use chief for exit negotiators said he is highlighting the importance of the current deal because it was the only agreement they have been able to come to so far. and ultimately, it is about ensuring stability, predictability and prosperity in no denial. and bearing in mind that the protocol represents the one and only solution found jointly in lights of rags it to protect against of the peace process and avoid to hard border on the island of island. joining us now to discuss is hillary ford, which president of straw mark business development consultants and board member with the british american business association. now, hillary, what do you make of these talks? i mean, is there hope for some kind of deal that would address the concerns of the u. k. has presented. well, rachel, pleasure to be back with you. and as always hope. yeah, this brings up
1:53 pm
a few things here. i'm. i actually would agree though with our raoul group role, he's the former advisor to the prime minister on europe. and you said that as a definite softening and a better tone, an atmosphere between list trust the current foreign minister am mariah. so today and actually they came out with a joint statement. awful. last meeting. yes. they messed met him, brussels to day after meeting in kent. so a couple of things. one thing he came out and said he has said after that meeting at the end of the day that he will not work to an artificial deadline, he will not be forced into an artificial deadline. although he's going to act with a sense of urgency. so i think what you're seeing is that you know that the b u doesn't really want to barge on. this is far more political than anything else. because northern ireland, of course, is a very political issue that yes oh, and yes, there seems to be somewhat of a softening and a better there than there's ever be her. i mean, obviously we've talked about this issue quite a bit on the show with you and you've noted that that you doesn't really want to
1:54 pm
make it easy for anyone to leave a but have that actually been the driving force behind this conflict. as far as keeping the northern ireland protocol in place or is that you actually happy with the protocol as it is? well i called speak to the you and i or anybody would say anybody's actually quite happy with the situation. ah go right, brent in that of course. like why would the e you want to country to leap? how does it make them look good? it's like when someone leaves your club, when someone leaves you, when someone does us, you know, it doesn't make the, you look good. and they're also concerned about all the nations, if all the nations see that this is not fraught with any kind of distress that other nations might lead to. what's interesting is married so cubic has also said that if there isn't some kind of sucking on on either side, that he will suspend discussions or breaks it at the end of the month at the end of february, before march to basically he and the, ironically he's actually said he wrote, set of fools deadline or artificial deadline, and yet he sort of setting it himself by saying the end of march. what was
1:55 pm
interesting also was he said that there were a less, i think it was, i think not just protocols than any other food country that they've made. so he basically is saying, you know, you have a great deal, britain of the u. k. you know, you should take this or else we're gonna stop speaking. so he is actually basically laying down a deadline and you're saying you, it may thinking that that you would be encouraging country is to stay, not encouraging them to just not leave, right? but when it comes to all of this, i mean, i also want to bring up the u. k. economy because it did record. it's a lowest growth in nearly a year with inflation at 30 year highs. and the bank of england is expected to raise interest rates again next month. so what do you see as the main economic concerns for the nation right now, and is it on a path to stability despite the latest data? well, i do think rachel, actually, ironically, despite the data, i do think it is on upward trend, a long term upward trend. and i think
1:56 pm
a few people to read me. adam holding. he is the chief economist over there at capital economics. and what he said is he called this up over the good actually he called it the own withdrawn hangover. and i thought that was a good way to basically position this don't get the u. k was hit rather hard heart of the most of the european nations with on the cross. so you have staff shortages and economic shortages in economic pressure in terms of all of the goods. the supply chain obviously was suffered far greater in the u. k than anywhere else. if there weren't the goods and some of the shows were empty, the consumer couldn't go out and buy them. also consumer confidence was hit drastically hard by omicron pot. if you go back to adams, quote, this is the only one hangover. he says, he thinks there will be a very swift recovery at the by the end of q one that's now going into the rest of 20 to the end of this quarter. and i tend to agree with him because all the underpinning fundamentals are good. manufacturing is up in the u. k. what was really hot yet was the services industry,
1:57 pm
the leisure industry in the hospitality industry, but of course, as we know, the u. k. is doing a lot of deals around the world and that bodes well for the future. yeah, i certainly a lot of moving parts there. hillary ford, which of straw mark development consultants. thank you so much for bringing us up to speed. pleasure. and finally, months after a russian actress and her crew became the 1st to film a movie in the outer space. well, tom cruise is now looking to join that exclusive club with a production of his own. the new project is being launched by the u. k. base space, entertainment enterprise and it aims to build a studio that would be attached to the international space station. well, that module referred to as c one is currently being developed by axiom a company based in houston, texas. when completed, it could be the world 1st content and entertainment studios and multi purpose arena in space. right now, the date for launches and until december of 2024 and tom cruise is expected to be one of the 1st major actors involved after nasa confirmed they were working with
1:58 pm
him on some sort of space film. but we still don't know much about it, including what their budget might be for a space launch. i bet it's going to be large. now they called you and they said, hey we, we want you to come up to our arena in space. would you, you of course, i've told you at times rachel, i'm ready for space. i'm here for it. well, as long as we can send a tv with you and you can talk to us down here, i will stay happily here. honor. i like the word space arena. it makes me think we might be looking at space olympics sometimes do home goodness. i think the regular olympics figured out then maybe maybe that's in the future, and that's it for the time you get blue bus on demand on the portable tv app available at portable dot tv. and it will see you next me ah, rather driven by remove shaped by person, those in
1:59 pm
me for dare's sinks. we dare to ask in a, is the earth still large enough to satisfy the ambitions of jeff bezos? you know, it's got its tentacles in so many aspects of the economy. there's nothing that amazon isn't trying to get into to step by step. the amazon empire has extended its group on the world that walks like a dog in choir like a dog dog. so amazon looks like monopoly trades like a monopoly makes money like monopoly behaves like monopoly. amazon essentially controls the market place. it's not really a market, it's a private arena,
2:00 pm
a world where a single company controls the distribution of all day. the products and the infrastructure of our economy. is this the world? according to amazon, a president of croatia, claims his country will withdraw from nate. so if there's a conflict between russia and ukraine, it comes as the west crying stamp, its military presence in the region where a legit blum's buying moscow to invade its neighbor. ah, tear gas 2nd class is where police in the ukrainian capital as people take to the streets of kiev to demand economic reforms. so ahead with solution.


info Stream Only

Uploaded by TV Archive on