Dow Closes Down 504.48

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[illiac]

Bad day for Wall Street

[kesg]

Won't this change minds of the public with the new wave of Bush bashing and blaming economy on him? How can the GOP as better for economy message get out?

By focusing on the solution to the problem, which will involve nothing less than overhauling the entire cozy relationship between Wall Street and the federal government. This relationship is how, until today, we the taxpayer have been getting stuck with the ultimate price tag for incredibly irresponsible lending practices by politically well-connected Wall Street firms, with the aide of their friends in Congress (more on the Democratic side) and the Treasury Department. This is what McCain and Palin mean when they talk about the need to reform Washington -- a message that both of them got out earlier today. I am sick of paying for these knuckleheads' disastrous business decisions. Enough is enough.

[The Duke]

Does character count yet?

[TChris]

TRILLIONS UPON TRILLIONS OF BAD LOANS is what’s causing all this... created by simple undeniable unfettered greed.

I understand you were going for effect here... but do you even know what a "trillion" is? ...and that there are only ~350 million people (men, women and children) in the entire USA?

So, if we're to take your "trillions upon trillions" to mean at least 4 trillion loans, and that there are 350 million people living in the USA, then that would equate to more than 11,000 bad loans for each and every living soul in the United States.

That, my friend, is over the top in a big way.

[jwparkerjr]

Thanks!

[brydic1]

“TRILLIONS UPON TRILLIONS OF BAD LOANS is what’s causing all this.. “

Indeed that is correct and those loans were made as a result of the massive vote buying by both parties. Give every American and non-american the funds to buy a home regardless of their ability to pay it off. Democrats call it “fairness” and republicans call it “compassionate conservatism.” Also contributing to the problem was the Fed Reserve constant efforts to keep the interest rates unduly low. Since capital was paid so little for saving and investment, those with capital turned to what has turned out to be extremely risky investments in order to make a buck. Politicians responsible for the entire fiasco. We desperately need an entire new political system, one that does not depend on massive vote buying at the expense of the working American.

[GOPJ]

At least the Fed Govt didn't bail anyone out.

That's why it's not down 900...

[RobRoy]

>>Wachovia is not in serious trouble, it’s Washington Mutual. Please don’t spread rumors.<<

Actually I would put it this way:

Wamu is a “dead bank walking”
Wachovia is in dire straights.

Just a few months ago:
http://articles.moneycentral.msn.com/Investing/CompanyFocus/WachoviaWaMuStillInBigTrouble.aspx
http://wcpowertechfund.blogspot.com/2008/06/more-trouble-brewing-at-wachovia-after.html
http://www.bizjournals.com/charlotte/stories/2008/03/03/newscolumn1.html?ana=from_rss

And More recently:
http://business.smh.com.au/business/so-long-and-thanks-for-the-bonuses-20080915-4gse.html
http://business.smh.com.au/business/so-long-and-thanks-for-the-bonuses-20080915-4gse.html
http://www.theaustralian.news.com.au/story/0,25197,24347694-36418,00.html

[GOPJ]

I think he meant TRILLIONS UPON TRILLIONS “of dollars worth” of BAD LOANS

[wolfcreek]

“Oil is at $94.23 right now.”

With the price of gas going UP, it ought to make for a pretty good quarter.

[dashing doofus]

TRILLIONS UPON TRILLIONS OF BAD LOANS is what’s causing all this... created by simple undeniable unfettered greed.

Exactly. Trillions of bogus triple A rated paper created by Wall Street and the rating agencies, who get paid fees to rate the bonds. That was the money factory.

Then, add in the tremendous greed of the real estate brokers, appraisers, mortgage brokers, etc. all ready and willing to cut corners and make loans from the money the factory created.

Add in the greed of the flip this house crowd, who thought real estate would forever go up, and many took unaffordable mortgages.

Now, banks and large brokerages around the world have trillions of assets on their books, and no one can value them. So, you have a credit crisis and firms stop lending to one another.

Greed, and hubris.

[se_ohio_young_conservative]

I want justice. I would like to see the morons that ran these banks into the ground thrown in jail. If a normal citizen handled our finances the way they do, we would be in the big house.

I hate to say this. But we need more regulation. for ethics.

[RobRoy]

This is ugly.
http://www.fool.com/investing/dividends-income/2008/09/11/is-washington-mutual-about-to-explode.aspx

[Mashood]

Hey, leave HamJ alone, he’s on a roll.

[AxelPaulsenJr]

For the record, this is not about Bush, IMO, but it is bad and will get MUCH worse.

As in 1929 style crash, and resultant depression?

[RobRoy]

Just YIKES:

http://www.indiadaily.com/editorial/20059.asp

[monkeyshine]

Did you see this:

SNIP

"They have a huge problem with the mortgage and housing market story, and everyone is missing it," says a Republican political media consultant with ties to the Obama campaign due to the bipartisan nature of the firm he does work with.

"You look at Obama's economic advisers, the guys he has counted on from day one and who have raised him a ton -- and I mean a ton -- of money: Franklin Raines and Jim Johnson, both of them are waist to neck deep in the mortgage debacle."

Both Raines and Johnson have served as CEO of Fannie Mae, with Raines taking over from Johnson. Both are key political and economic advisers to Obama.

"How can Obama go out with a straight face and saw it was Republicans who made this mess, when it is his key advisers who ran the agencies that made the big mess what it is?" says a Democrat House member who supported Sen. Hillary Rodham Clinton. "It's his people who are responsible for what may well be the single largest government bailout in history. And every single one of them made millions off the collapse that are lining Obama's campaign coffers. If the McCain campaign lets this one go, they deserve to lose."

SNIP

Fanny, Freddie, and Obama [The American Spectator, Sept 8, 2008]

[Boardwalk]

In the late 90’s my cat Sammy Davis Junior received a credit card offer in the mail with a pretty good line of credit. Davis Jr declined.

[RobRoy]

>>As in 1929 style crash, and resultant depression?<<

Yup. Maybe worse. We have been in deflation for a while now.

And remember what the depression got us in the 1939-1945 timeframe. People just don’t realize how serious this thing can get.

[wolfcreek]

I prefer to blame this situation on these fellas.

http://www.conspiracyarchive.com/NWO/Council_Foreign_Relations.htm

[AxelPaulsenJr]

So I take it you are looking for the end of times?