Posted on 03/07/2009 9:52:29 PM PST by 2ndDivisionVet
With stocks mired in multi-year lows and the fate of General Motors and banks hanging in the balance, investors are unlikely to curb their flight from risk next week, putting Wall Street on track for another brutal sell-off.
One focal point will be a meeting between the US auto task force and GM, Chrysler and officials from the United Auto Workers in Detroit next week after auditors raised doubts about GM’s ability to survive outside bankruptcy.
Uncertainty over the plan to salvage banks will also hang over the struggling sector until more concrete details from Washington are revealed, leaving investors to fret that companies that were once pillars of the financial system will have to be nationalised.
The weak economy will likely be confirmed by a handful of economic reports, including a government report on February retail sales and a survey of consumer sentiment.
“There are, unfortunately, no guideposts to a lot of the market to allow investors to get a better sense of direction of where the market is going, where corporate America is going,” said Jack Ablin, chief investment officer at Harris Private Bank in Chicago.
“Short of that, we’re going to likely have to rely on Washington. Unfortunately, it just seems like Washington’s relationship with the stock market is strained.”
“PAINFUL” MARKET
With the Dow and S&P trading at 12-year lows, and the Nasdaq sliding to 6-year lows, market watchers will be looking for signs of whether a bottom has been found, or if indexes still have another leg down to go.
This week was the fourth week of declines for all three major US stock indexes, as the Dow Jones industrial average dropped 6.2 percent and the Nasdaq composite index fell 6.1 percent. The Standard & Poor’s 500 slid 7 percent, its worst week since November.
(Excerpt) Read more at thepeninsulaqatar.com ...
“Such people are easy to rule.”
They would say: “So the people will realize that serving a greater cause than themselves is the noblest endeavor.”
Communism has always started with a soft, kind tone and feel.
It has always ended in suffering, stagnation and the death of millions.
Sounds about right.
A dead cat bounce is quite likely. We’ve witnessed several on our way into Obama’s pit. Then the rush will be on to collect short term gains and the collapse will continue. Obama has not given investors any reason to believe that their money will be safe while he is president and the Democrats control Congress. On the contrary.
When I got our 1st labor contract about 1960 that included Health and welfare plus pension I vowed to never go near the stock market.
It was obvious that it would become a ponzi scheme from then on.
I just watch it to be able to estimate the bottom of the real estate market.
“Obama doesn’t seem to have a plan. He’s neither smart nor clever enough to have a well-thought out plan, in my estimation.”
But he is ELECTED. HE is in the White House. Smart, as you say, or not, HE is a very useful tool for the hard-left, if nothing else.
IF what I suspect is true, that is.
Dow futures for Monday's market won't begin posting until late Sunday afternoon. The +43 you're looking at means nothing.
Yes, but some Americans have "affordable housing".
"Who has so much money right now that they could basically bankroll the world?
Who has so much money that in the real world dollars it can’t be truly counted?
This economic tsunami has pretty much gone global. Except for the oil rich middle east nations that have Sharia law built into their economic systems. They have all the funds they need to put in place any system they desire and to hire the people to make the system run. It is all about power and they are leveraging the world to be the top player with all the power. And they have an ally in the White House more than happy to accommodate them and certainly seems to be orchestrating the monetary collapse.
The world will need to be stabilized. To do that, someone with huge assets; enough solid assets to stabilize the world’s economies will need to step up. This will enable him to buy the world’s debt and re-establishing tangible assets and a sound economic system.
Out of all the kingdoms in the world, WHO else has the monetary assets that can "right-up" again a toppled world backed by a true asset and not a fiat currency? The fact is that it is the Middle East and the asset is oil and associated with that is Sharia banking.
We are being manipulated by unseen forces that will produce a peace wielding 'moderate' Islamic world leader with all the answers and the capitol behind him. Every nation will have to yield. We are beginning to see how it can happen. The collapse is very near. So let's see who steps up to the empty plate and presents the cornucopia of solutions. You think Islam is in your face now? Just wait until we have to go begging to the new overlords. I believe the Bible calls him the Anti-Christ... Amadinejad calls him the Madhi.
That's how he got there.
Good posts BTW.
Nicely written, and I agree 100%.
http://www.freerepublic.com/focus/f-news/929392/posts
An excerpt:
To the revolutionary mind the American vista must have been almost as incredible as Genghis Khan's first view of China so rich, so soft, so unaware. No politically adult people could ever have been so Little conscious of revolution. There was here no revolutionary tradition, as in Europe, but in place of it the strongest tradition of subject government that had ever been evolved that is, government subject to the will of the people, not its people but the people. Why should anyone fear government?
In the na’ive American mind the word revolution had never grown up.......Well, certainly nothing like that was going to happen here. That it probably could not happen, and that everybody was so sure it couldn't made everything easier for what did happen.
....There was a prodigious literature of revolutionary thought concealed only by the respectability of its dress.
Americans generally associated dangerous doctrine with bad printing, rude grammar, and stealthy distribution. Here was revolutionary doctrine in well printed and well written books, alongside of beat sellers at your bookstore or in competition with detectives on your news-dealer’s counter. .....
To the revolutionary this same dreary stuff was the most exciting reading in the world. It was knowledge that gave him a sense of power. One who mastered the subject to the point of excellence could be fairly sure of a livelihood by teaching and writing [Ayers???!!!], that is, by imparting it to others, and meanwhile dream of passing at a single leap from this mean obscurity to the prestige of one who assists in the manipulation of great happenings; while one who mastered it [Obama!!!?????] to the point of genius that one might dream of becoming himself the next Lenin.
There was an awful jobs report on Friday, but the Dow closed up a bit anyway. Next week might well bring an over-sold rally.
Yeah, but those historical bottoms were all made under presidents who knew what the hell P/E meant. Every day between now and 1/20/2013 is uncharted territory.
YOU WILL GIVE IN.
YOU WILL DO ANYTHING THEY TELL YOU.
_____________
Please don’t assume everyone is like you. The US isn’t the only place in the world you know? We can leave if this happens and our plans are already done. All we have to do is pack a bag and go. The house is ready, even have clothes, canned good and a stocked medicine cabinet. If nothing happens it will be a vacation home which is what is was intended to be in the first place.
How about those of us who saw this coming and pled with people to vote for McCain no matter how much they disliked the man and were told “we have to tear down the GOP and rebuild and it won’t matter if Obama is POTUS for four years?”
Tomorrow strikes me as a very bad day for the markets.
*
Profits-to-earnings ratios (P/Es) are nothing but speculation right now. Anybody who says P/Es are low is delusional. Earnings are cratering and nobody knows what earnings will be 6 months from now.
I’m rather doubtful that “many stocks are now trading at unheard of historical P/Es”. The P/E for the entiere S&P 500 is at 16. At major bottoms, the P/E is 5 to 8. That means we are going down 50% to 70% from here.
Many stocks may be priced low by 1980s standards, but they are still going much lower. Much, much, much lower. Falling knives and all that rot.
I hope people are watching their 401k’s and so forth....
Dead Socialist Bounce?
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