Bail out #1 fails on 9/29, #2 passes Senate 10/1, House and signed 10/3. 
Posted on 10/09/2008 12:59:03 PM PDT by Red Badger
The Dow Jones industrials fell under 9,000 this afternoon for the first time since the summer of 2003 as investor confidence that markets would stabilize appeared to collapse. At 3:40 p.m. ET, the blue chips were down 641 points, or 6.9%, to 8,617. The Standard & Poor's 500 Index was off 74 points, or 7.5% to 911. The Nasdaq Composite Index was down 94 points, or 5.4%, to 1,646. The S&P fell under a closely monitored support level of 960. A support level is important because it is supposed to trigger new buying. At those levels, the crash of 2008 has left the Dow 39% below its record close of 14,164.53 and the S&P 500 down 41% from its record close of 1,565.15. Ironically, both records were set exactly one year ago today.
(Excerpt) Read more at articles.moneycentral.msn.com ...
I “borrowed” it from another FReeper, but now I will have to make into a video.
We didn’t get into this mess in 2 weeks and we aren’t going to get out of it in 2 weeks. Kind of like you don’t get fat overnight....you aren’t going to lose it overnight. Be patient.
I think you make an excellent point....one I wish the republicans would make.
Intriguing thought. Thanks for the post, I will keep this in mind through the coming days.
This is what is referred to as 'whistling past the graveyard'. What people need to understand is that there are two component pieces to what is happening in the market: nominal & real events.
The nominal event is the short-term liquidity crisis, which, as you suggest, will begin to free up once the CDOs start to unwind and Treas begins making its asset purchases.
However, the much bigger concern is the "real" economy. While this has been fueled for 20+ years primarily by credit expansion, the party is now coming to an end. The only thing that will get it going is true growth, in the form of some new good/service that will stimulate demand. This is what the markets understand: it will take at least 3-5 years for whatever new gizmo is out there to drive the economy.
There is where McC, for all his supposed lack of economic knowledge, has perhaps inadvertently stumbled upon a solution with his promotion of nuclear energy. Not only would the short-term construction activity help, but more importantly, we would have new, extremely important sources of electrical power that would in itself stimulate all sorts of demand for electrical goods (like cars).
Anyway, the point is that throughout US history, sustainable growth came about due to technical revolution. With gov't out of the way, the pursuit of wealth stirred our best & brightest to come up with a better mousetrap.
The good 'ole days of having a house suddenly become worth 3-5x what one paid for it and acting like an ATM to fuel consumer spending is over. Now we need to focus on real productivity improvements.
Hey where is Mitt Romney when you need him? He was the only candidate that had a clue on the economy.
He is a Morman, he flip flopped on too many issues. Can’t have him...Nooooo
Mitt still hooked on that Staged Moon Landing “Smoot-Hawley caused the Great Depression” myth...and Dobbs countered with David Ricardo’s “comparative worth” [sic] discussion on Free Trade. Romney got out-economiced
I like Mitt and he would have made a better candidate, but his economics are part of the problem, not the solution, for this current crisis (and I am not referring just to the Mass. Health Care Socialist health plan)
There are actually rules in place for when and why for can stop trading. Also, typically you see money managers trading in the late afternoon so that is when you see more action and big upswing or downturn. Really has nothing to do with the politicians say. Sometimes it reacts to what the feds say or a big announcement like AIG but rarely does it react to Washington.
And you could buy em today at these prices and next week they'll be $1 and $2, respectively. Falling knife and all that.
OTOH, in 5 years they could also be $30. Depends on your outlook and how lucky you feel lol.
How many more years before you can retire? Hopefully the markets will bounce back so you won't be left without anything.
For years I've been trying to get my oldest son (in his early 40's), to invest in a retirement fund. Maybe it's good that he didn't...at least at this point in time. But, long term, he should have something put away for himself. He's never been married and lives with his long-time girlfriend. My youngest son had been putting some money into stocks until he lost his job last year. He's been back to work, but isn't to the point yet that he can start investing again.
When I retired in 2003, I took a reduction in my pension so that some of it was set aside for my kids. Of course I have to die within 15 years from my retirement date in order for them to benefit. Longevity doesn't run in my family, and so I took the reduced pension so that if I did die early, the state wouldn't get their hands on the 33 years of mandatory contributions I made to them for my retirement.
According to the article, exactly one year ago today.
Well the market reacted when *ickhead harry reid came out and announced that a major insurance company was going to declare bankruptcy. Insurance stocks to a big hit the next day. I don’t know if its the exception, but it happened. And look what the price of oil and gas does when the secretary of energy opens his mouth. A politician just the same. JMT!
Bail out #1 fails on 9/29, #2 passes Senate 10/1, House and signed 10/3.
According to the article, exactly one year ago today.
The DOW close exactly one year ago today was 14,164.
“We will still be in the depression or in a civil war then. (Probably both)”
Well, in that case it really won’t matter if you dumped your stock now or not. Just curious. Who’s going to be fighting each other in this civil war?
What do you think the drastic lowering of interest rates, and the massive infusions of borrowed money (by governments) is going to cause?
Better by a wheelbarrow while you can.
Doesn't it usually start in South Carolina?
Is there a way McCain can try and do an ad based on that? It might help McCain's numbers. Especially if his numbers rise and we see the market rise at the same time.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.