0bama's fault!
Posted on 01/20/2009 4:02:07 PM PST by MindBender26
Cannot post due to sourcing issues, but the compendium of financial news wires is very specific. On a day when markets are usually up on hope and anticipation, they are down to record lows worldwide.
It will get MUCH worse.
...and you'd better believe it!!!
Yes, but as you recall, he said economics wasn't his "strong suit."
The market dropping had a lot more to do with banks blowing up (or not blowing up for spells) than anything else. Still is...look at BAC, RBS, Barclays, Citi, etc the last month. That’s not to say that the market like Barack. You’ll know his time for gov’t expansion is up when we have a bond market dislocation. Depending on how quickly Ireland/UK collapses and E. European countries depends on how quickly that happens here. I previously thought he’d get a full year of $2tril+ deficits in. I give is 6 months now.
Stocks are going a lot lower. Probably somewhere between 4k-6k. This ‘recession’ is not going to be over in 6 months. The credit bubble still has several more YEARS to unwind. Option ARMs/Alt As start resetting in mass at the end of this year and escalate until around the end of 2012.
Yep—the market comes back every time! Just ask those people who invested in the Nikkei in 1983 (back at the same level—non inflation adjusted)! Or those people who bought in at the DOW in 1929 or the Nasdaq in 99/00! We have several more years of this mess to sort out. Equities have at LEAST 30% more to drop—likely 50%. Heck, the S&P 500 is back to 1997 levels (non inflation adjusted) or a lot earlier if you adjust for inflation.
While Schiff might be right about the bond market—he’s been wrong on nearly everything. He said to be long asia/commodities/any currency but the US. If you actually listened to him you’d be down 60-80% in most cases. The only thing the guy got right was that the US was in trouble. Try listening to Roubini.
In that case, they should have left two months ago. Moving now will put you into deep taxes for an escape penalty.
Actually, dumb money was buying before today hoping for a big “Obama Rally.”
Smart money was selling or shorting. (Of course the smart money knew Obutthole is going to be inaugurated...)
The market will work thru that Obama hope buying from last week and then maybe get a bounce for some other reason, or flatline, or get hit again. But the “hope” buying was flushed out today (and in next few days).
I’m not saying corporate bonds aren’t risky, they are. If you can’t afford to risk capital loss, you should be sitting tight. But if you can afford the risk of investing in the private sector, bonds have better risk/return tradeoff than stocks which - I argue above - are still not cheap by historical standards and which are more vulnerable to panic. The majority of companies will not go bankrupt and will not default. Of course the trick is to find the ones that have good pospects for survival. But companies like Philip Morris (altria) and Coke and Pepsi paying 6% is a pretty good risk tradeoff for those who can take it.
I think I know who you’re talking about.
Very true. Jimmy Carter, and probably Herbert Hoover, deserve a great deal of credit for economic disaster during their times. Outside these cases, the best Presidents were the ones who got out of the way of the market.
LOL! Did you create this photo-shopped picture? If so, my compliments...
What do you mean, Obama is FDR, Lincoln, JFK all rolled into one and is going to save not only America but the world.
I know b/c a local Moonbat told me so....
She would have thrown in George Washington and Thomas Jefferson, too, if she had any idea who they are.....
“The market dropping had a lot more to do with banks”
That’s exactly what a very knowledgeable relative told me tonight. Bad news early Tuesday morning about the Bank of Scotland (?) sent the market dropping big time.
It had very little to do with Obama (though in my opinion, the country sank lower also with an abortion-loving president sworn in office—a sad day for sure).
If he’s as stupid and crooked as everyone thinks, he’ll hit the reset button for us, and we won’t have to worry about liberals for a long long time, except for burying their starved rotting corpses.
If he’s not as stupid and crooked as people think, they’re worrying for nothing.
Win-win.
Yep, by the end of this year we’ll see a breakthrough of the 6000 level.
Do you think it will take that long? IMHO I suspect an April or May time frame or sooner.
I agree with you, I just didn’t want to scare to many...
I bought SRS at 50 and FXP at 29.5, FXJFD at 13. I’ll ride
them down.
Thank you for your kind words, I can afford some risk, but I happen to be one of those dumb shits who got out early, in 2007. In nominal terms not that much but haven’t lost much! So I gotta “be right twice”. The averages aren’t with me on that.
Back in Sept. and Oct., somebody at work was talking about certain junk bonds that were paying 30 and 40 per cent! Then I read that McDs CDS are considered a better risk than say, England, and I decided to forget it.
This, I think, is the crux of the problem (for anyone who has money after a market rout) - people won’t spend if they are scared, which leads to bankruptcy, which increases fear, more jobs go away, tax revenue, etc. Banks won’t lend, everything stops. I didn’t know this!!
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