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Dow plummets


BLZFAN4LIFE

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Come on man. 14 years ago, the Dow was at 3,700 or so. Get a grip on the facts.

 

http://finance.google.com/finance?client=o...;q=INDEXDJX:DJI

 

But hey, keep fanning the panic.

 

The 700B bailout hasn't done anything yet. It will relieve a credit crunch. It will take a long time for credit relief to be reflected in the market. The two are related but there are many things that will influence a market comeback. Not the least of which is when all the people who have pulled their money out of the market in the last year start pouring it back in.

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Come on man. 14 years ago, the Dow was at 3,700 or so. Get a grip on the facts.

 

http://finance.google.com/finance?client=o...;q=INDEXDJX:DJI

 

But hey, keep fanning the panic.

 

The 700B bailout hasn't done anything yet. It will relieve a credit crunch. It will take a long time for credit relief to be reflected in the market. The two are related but there are many things that will influence a market comeback. Not the least of which is when all the people who have pulled their money out of the market in the last year start pouring it back in.

Of course by the time the effects of that 700B impact the credit market, it will also be screwing with prices. How much will be people be investing when gas goes up another few bucks?

 

I'm guessing that over the next 3-6 months, the dow goes up again, but over the next 1-2 years, it all comes tumbling down.

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Oh look, now Bernanke says he might lower the interest rate to help things out! :D

 

http://www.cnbc.com/id/27070225

 

It's almost like they are trying to detroy everything.

 

Something I'd like to draw attention to:

Recent economic data and financial developments show that the outlook for growth has worsened and downside risks to growth have gained, Bernanke said in remarks to the National Association for Business Economics. The outlook for inflation, while still uncertain, has improved somewhat as oil and other commodity prices have eased, he said

 

While inflation has been elevated, prices for oil and other commodities prices have tumbled from recent peaks and import prices have fallen, Bernanke said.

Further, expectations of future inflation had eased, he said, which would lessen any chance of a wage-price spiral from igniting.

"Inflation" does not mean a rise in prices. A rise in prices is the RESULT of inflation. Mr. Bernanke knows this of course, but the wording is designed to draw attention away from what is actually happening. Inflation refers to the increase in the money supply. By printing more and more money (by way of tax rebate checks, 700B bailouts, and hundreds of billions used in bailing out Fannie/Freddie/AIG), you inflate the dollar and cause an increase in prices as the economy adjusts. Not only does this raise prices, but it does not raise them uniformly, which means the everyday citizen is hurt by this more than governements and banks are.

Fortunately for guys like Bernanke, it takes time for all of this to happen. A few months, maybe a year, so that when the prices start to skyrocket, the blame can be pointed elsewhere.

 

I don't know much about the stockmarket; I was never interested in it. But I do know about economics, and let me tell everyone something....be worried. These guys aren't even trying to be sneaky about this stuff anymore.

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Welcome to the real result of the Clinton "economy".

Give me a break. This has nothing to do with politics. This is American Economy, plain and simple. The decisions that have brought us here have been being made for decades, and no sitting president or majority congress had done anything but make things worse.

 

The problem with bringing politics into this is that people keep looking to blame someone. It's the republicans fault? We'll vote them out, and everything will be better. Same argument for democrats. It's all bull. Nothing but a complete overhaul of our economic system, starting with the Federal Reserve and Bernanke himself, will do anything to get us out of the hole we are currently falling down.

Edited by Faustus
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Could somebody PM me when it's time to start buying?

 

Do what you want. I'm buying plenty. Nice high dividend stocks that are taking hits now. There are a lot of companies sitting on a lot of cash just like there are a lot of people now with a lot of cash they've pulled out of the market. Don't expect investors to prefer their mattresses to the market for long. When the money starts flowing back in, it will flow back in big time.

 

But also expect recession. As a country, we won't be out of the dark for a while. The good news is that all the current actions should put us WAY ahead of what's about to happen to the world economy. If you're planning a trip abroad, next year is looking good--the dollar should be kicking a lot of currency tail by then in spite of all the funny money we're printing.

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Do what you want. I'm buying plenty. Nice high dividend stocks that are taking hits now. There are a lot of companies sitting on a lot of cash just like there are a lot of people now with a lot of cash they've pulled out of the market. Don't expect investors to prefer their mattresses to the market for long. When the money starts flowing back in, it will flow back in big time.

 

But also expect recession. As a country, we won't be out of the dark for a while. The good news is that all the current actions should put us WAY ahead of what's about to happen to the world economy. If you're planning a trip abroad, next year is looking good--the dollar should be kicking a lot of currency tail by then in spite of all the funny money we're printing.

 

Can I have some examples? I wasn't being a smart ass before.

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Welcome to the real result of the Clinton "economy".

Awwww Snookums... didn't anyone tell you? The game of 'pin the tail on the donkey' was over YEARS ago.

 

Edit: I removed a somewhat warranted gold star reference to replace it with an actual, possibly constructive, non-rote thought. Though I do personally believe Clinton should shoulder some of the blame(sub-prime lending practices began during his tenure TTBOMK), there is no way - even a person in the dark 20 hours a day - can look past the deregulation of our financial industries as a major impetus. Corruption and abuse fueled by a lack of oversight are, I can see no way around it, the primary causes of this mess.

 

Too bad we didn't privatize Social Security while the markets were HOT!

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