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 ...
Fox News panel thinks a 60 seat Democrat senate is likely. Very scary.
Only if they’re T-Bonds. Most people look at a “bond” fund and think it means treasuries. A “bond” fund is typically jammed with commercial paper - you know - that market which basically stopped working last week.
T-bonds are the safest bonds because they have the full faith and guarantee of the U.S. gov’t.
Can the Fed default on T-bonds? Theoretically. If they do, however, we’ll all have much bigger problems to deal with.
This explains a lot:
http://www.ft.com/cms/s/0/c9933e0c-9629-11dd-9dce-000077b07658.html?nclick_check=1
They will consolidate power and pass new laws that will make it virtually impossible to ever unseat them.
By 2010, our journey down the path to Socialism will most likely be complete.
Actually, the fact is that Government Spending has foreclosed on private spending...or said differently (same effect) Government Borrowing has foreclosed on Private Borrowing. If the federal government can ‘cut itself in half’ we have a chance. If McCain actually ‘wants’ to win, he’ll up the ante on his Government Spending Freeze.
Right after the election, well before the inaguration. That way it doesn't benefit McCain, who is stonger on national security, and it can still blamed on the Republicans, who will likely then suffer the same sort of time in the wilderness after Herbert Hoover, or more likely go the way of the Whigs. Possibly more like the Mensheviks and the Trudoviks. IOW, into the Gulag.
39%
Nah. it is not too late. This has gotten very technical in equities. We are at 12x on the S&P earnings. Normal is 15x. People worry earnings could get a 20% haircut. So we are at 15x. A big investment tax credit puts us at say 10x or better. Creates uncertainty for the sellers.
Well I was thinking of a wheelbarrow to carry your grocery money in. But you'll probably right, nobody carries cash, and with debt cards, that won't change..I don't think, there will just be a lot more digits on the receipt. But don't forget gun and ammunition makers. And maybe makers of fine hemp rope.
“Buying opportunities galore”
Not just yet. This isn’t done by a longshot.
“Perhaps it’s less of a “crash” that we’re seeing, than it is a “return to the baseline”
Yes I wish everybody would read Thomas Sowell to understand the difference between value and price.
But you concept of reversion to the mean is correct.
http://online.wsj.com/article/SB122351051370717359.html?mod=djemEditorialPage
I don’t like the article too much but the chart is damn good. It should be logarithmic instead of linear on the vertical axis.
This is just preparing the battlefield. The attack comes later.
Ah, if you bone up on your stats or chart reading you would see we are in an oversold condition. We could get more oversold and until we inflate or lower business taxes we are likely to.
I'd call it more a form of Economic Fascism with our current emphasis on maintenance of Corporatism. The Bush-Paulson Plan keeps the political and corporate elites in place and sends them off to spas rather than firing squads.
No reason it can't be both. Plus Putin is awash in PetroEuros.
“Cramer is a FOOL”
Succinct and accurate.
I meant debit, but that may have been a Freudian slip.
The real problem for Ford and GM is that I bought a new truck a few months ago and looking for a new car now and would not own one. Toyota all the way.
By 2010, our journey down the path to Socialism will most likely be complete.
"Sons of Anarchy" might not just be the title of a TV show.
“Why is it that the devastating effects of a fiat currency and a central bank is never discussed?”
A few reasons. First, it’s a somewhat complex concept and doesn’t lend itself to quick understanding. Second, the people who oppose it by and large come from a conspiracy theory perspective. They haven’t understood that it turns people off and screams “fruitloops!” Finally, the primary solution offered (a switch to a gold standard or commodity based currency) is neither an effective way to oppose the existing system nor a practical alternative.
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