Posted on 09/15/2008 1:16:57 PM PDT by illiac
Bad day for Wall Street
(Excerpt) Read more at finance.google.com ...
>>It held pretty steady at 300 for most of the day and then took a dive before closing.<<
Yeah, and huge volume as prices plumetted towards the end. A lot of people trying to catch falling knives. This will not be over for quite a while. I’m betting another five years of this stuff.
Invest in ING - seems solid, not in with bad real estate loans.
DJIA 10,917.51 -504.48 -4.42%
yep, buy, may be record lows for new buyers too, but if you don’t have the risk tolerance, put your money in the freezer
I have seen 10,000 referenced, wonder if it goes as low at 7,500 if anyone will have any money to make any stock purchases?
And a callow Federal Reserve Chairman who thought that it was all a great thing as part of the new economics paradigm.
Not if McCain and Palin get out in front of this and outline some solutions. The economy should be what they are talking about on the campaign trail. Their biographies are already out there. They need to move and and get to the bottom line -- voter's pocketbooks. They must address this while we have the momentum on our side.
What it does is constantly subject our currency to intense deflationary pressures barely offset by inflation.
The rest of the world tries to buy its way into this vast wealth generator by investing in fundamental, large scale business sectors, e.g. housing. They buy mortgages. They know what they're doing.
Sometimes the investors screw up, like now, and find they've bought into a situation where the price of housing is declining.
Our 20 somethings need homes eh!
>>I wish someone could explain to me just what the H*ll is causing all of this...........<<
Is that some sort of joke?
Here ya go:
http://seekingalpha.com/author/michael-shedlock
http://seekingalpha.com/author/tim-iacono
http://seekingalpha.com/author/barry-ritholtz
Lots and LOTS of articles dating back YEARS talking about this. It is no surprise to most of us who have been following it.
For the record, this is not about Bush, IMO, but it is bad and will get MUCH worse.
I'm not so sure. I do think that chronic economic weakness would work work in their favor. But this is different. This is a situation that calls for an overhaul for how Wall Street interacts with the federal government so that we don't have a repeat of the current problems and we the taxpayers ultimately end up getting stuck paying for someone else's gross irresponsibility and disastrous business decisions. This plays straight into the reform theme of McCain-Palin, and unlike Obama and Biden they are proven reformers with a record of success (at least in Palin's case -- McCain has a record of being proven right in hindsight after often being a lone voice in the wilderness).
It is gonna be a long week. There are several reports waiting to be released this week. It could get alot uglier.
* Consumer price index (Aug. 2008): Tuesday 8:30 AM
* NAHB housing market index (Sep. 2008): Tuesday 1:00 PM
* FOMC interest rate decision (Sep. 2008): Tuesday 2:15 PM
* Housing starts (Aug. 2008): Wednesday 8:30 AM
* Leading economic indicators index (Aug. 2008): Thursday 10:00 AM
The fed will not be able to afford to bail them all out. I believe that is the reason they are not doing it.
Although I don’t want them to bail anyone out, their reason for not doing it is not very good news for the economy.
I hope y’all got a good garden and remember how to can food. ;)
So much of this boils down to one basic issue- Bad Loans!! Give it 9 months and things will look very different. The problem is we only have less than 2 months until election day, this brings me to my rant.
Someone needs to shut Greenspan up. He is part of the reason we’re in this position and his comments on McCain’s proposed tax cuts- what is the old saying, “With friends like this, who needs enemies”. Tell everyone you know Greenspan is part of the problem here!
“TRILLIONS UPON TRILLIONS OF BAD LOANS is what’s causing all this... created by simple undeniable unfettered greed.”
That pretty much sums it up. Operating outside the boundaries of common sense causes these scenarios.
“TURN THOSE MACHINES BACK ON!”
When Pelosi took control of Congress, DOW was at 12,400. Now it is under 11,000.
Nice going, Nan.
There’s plenty of good buys in the financial sector.
We’re seeing the traditional game being played out - bad risk is punished, good risk rewarded.
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