Posted on 08/14/2007 12:10:24 PM PDT by Post-Neolithic
NEW YORK (MarketWatch) -- U.S. stocks fell after Wal-Mart Stores Inc., the world's largest retailer, lowered its earnings forecast and a futures broker moved to stop withdrawals, exacerbating worries about a credit squeeze. "It is a problem in the asset-backed commercial paper market that is causing the new concern now - that is the new leg to drop," said Peter Bookvar, equity strategist at Miller Tabak.
(Excerpt) Read more at marketwatch.com ...
Now the question is, are the FEDs going to throw more taxpayer’s money into the market to bail out the bankers?
I hope not.
I will either be seen as brilliant or stupid for turning 80% of my ROTH into cash last Friday....
Gotta remember, the guys calling you today and telling you to sell are the same guys that will call you in a few weeks and tell you to buy. They get paid both times.
Down 130.63 from 13235 is not exactly what I would call “falling sharply”.
Wal-Mart mentioned, even blamed? Cue the play pretend conservatives.......
Buying opportunities abound!
Stock market retreats are like mob wars, they have to happen once in a while just to keep everybody honest.
If there’s no good reason for the retreat, but it’s time nonetheless, they’ll make something up to justify it.
Since the Dow is denominated in dollars, a more effective chart must also take into account the strength of the dollar over that time frame.
The dollar is down about 40% over the last 5 years - the Dow would have to be up 66% over that time frame to stay even.
When can we start blaming the Democrat-controlled Congress? Can we, huh? Can we? Pleeezzzeee....
Oh Noes!
We’re all gonna die.
Pelosi’s fault.
That’s my take. I sold off a bunch of bond ETF’s today so I can buy more stocks tomorrow.
From the low point around September 2002 to today's value is about a 75% increase.
Tell me, do you even PRETEND to understand what you are talking about when it comes to the FED?
Well we can continue the Hoover style solution and keep tightening credit into a recession and lead us into a full scale depression. Real smart move. The Fed may act, but Bush certainly won't. It really is not related to bailing anybody out.
You're quick! LOL
Effectively, the market is up about 15% over the last 5 years. That isn't too bad, but it's not stellar either. I feel bad for someone who has not been in the market over that time and seen the real value of the assets fall.
I would really like to see some fiscal responsibility return to Washington but that might be too much to ask. While I don't consider the current economy a house of cards, it is being propped up in large measure by cheap illegal immigrant labor and a housing market that was overfueled by easy money.
The cheap illegal labor can't last forever as their real costs are just shuttled over to the state and local governments i.e, schools for their children, health care, prisons, etc.
I do like Bernanke and what he sees as the valid functions and goals of the Federal Reserve.
US Government money infusions into the market
In the case of last Friday’s "injection" the Fed did something a little unusual. Ordinarily the bonds it offers to buy or sell are good old U.S. Treasuries; the Fed has lots of them lying around. But because the current breakdown in the credit markets is caused by bonds backed by subprime mortgages, those are the bonds the Fed specifically went shopping for (some $38 billion worth, to be exact).
My point which you obviously find some fault with, is the the FED needs to keep the hell out of this subprime mess and let the markets take care of it. Or do you espouse government intervention in free market mechanics?
Basically the market is up in line with its historical trend. The stock market is not really the best gauge of the overall economy but unfortunately it appears to be the only one most people understand. I can remember back in October 1987 when a 200 point drop in one day really was a crisis. Of course people that were smart enough not to panic in the face of that crisis and instead continue to dollar-average in their investments in a broadly diversified market portfolio are doing much better than the ones who panicked and cashed out. Today a 200 point swing in either direction in one day is just the noise of market fluctuations. I do get a chuckle when I hear or read some buffon characterizing a daily drop of 100 to 200 points as a “sharp decline” or “falling sharply”. It just shows the person to be an economic ignoramous.
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