Black Friday?

[PapaG]

Wow, Wall Street is taking a huge dive again today. Will panic set in as the major investors start to sell off this afternoon?

 

[maxiep]

It's gotten so bad, even President Clinton has commented that President Obama needs to stop talking down the economy. Part of me wonders if it isn't intentional.

 

[PapaG]

It's gotten so bad, even President Clinton has commented that President Obama needs to stop talking down the economy. Part of me wonders if it isn't intentional.

Seems at least somewhat intentional to me.

http://www.abcnews.go.com/print?id=6915526

No Confidence: Dow Closes At Six-Year Low
Wall Street Drops 800 Points on Heels of Obama's Plan to Save Economy
By DAVID MUIR
Feb. 19, 2009—


President Obama has said that turning the economy around will not be easy, or quick -- and it appears Wall Street agrees. The Dow Jones Industrial Average lost nearly 90 points today and 800 points, or 9.7 percent, in the 10 days since the Obama administration announced major reforms to stimulate the economy, keep banks afloat and save millions of homeowners from foreclosure.

But since the banking reforms were unveiled Feb. 10, the Dow has reached a new bear market low -- the lowest since Oct. 9, 2002.

 

[PapaG]

I can't wait for the inflation that is sure to start surfacing later this year.

 

[BLAZER PROPHET]

I wonder if any of this is tied to the current non stop bailout schemes designed to help those who don't really need it.

 

[PapaG]

I wonder if any of this is tied to the current non stop bailout schemes designed to help those who don't really need it.

I wonder what will happen after this mortgage scam is passed. Nothing like paying other peoples' bills when you can barely pay your own. Obama needs to step up and start leading. Talking down the economy has people in a panic; great leaders don't use panic as a motivating tool.

 

[maxiep]

I can't wait for the inflation that is sure to start surfacing later this year.

Anyone that has an ARM or any kind of floating rate debt, please do yourself a favor and get it into a fixed rate product.

 

[PapaG]

Anyone that has an ARM or any kind of floating rate debt, please do yourself a favor and get it into a fixed rate product.

We were on an ARM in 2000 on our first home. When we upgraded in 2005, we locked in on a 30-year fixed at 5.25%. It's the best decision I have made in my adult life.

 

[AgentDrazenPetrovic]

Anyone that has an ARM or any kind of floating rate debt, please do yourself a favor and get it into a fixed rate product.

Isn't Obama going to save all those people by adjusting their mortgages for them into traditional loans?

 

[PapaG]

Isn't Obama going to save all those people by adjusting their mortgages for them into traditional loans?

Obama isn't going to to jack squat. He won't have "skin in the game". WE will be paying for these losers. The one thing Obama seems to excel at is spending other people's money. The guy has already doubled the WW2 high of the deficit/GDP ratio.

We are going to enter a depression. I just don't see how it can be avoided because China and other backers of our capital are going to start pulling out once inflation sets in and the dollar becomes worthless.

 

[PapaG]

Market quickly down another 80 points in 30 minutes. -177 and falling.

Perhaps this is the afternoon panic sell I was talking about in the initial post.

 

[AgentDrazenPetrovic]

market took a bigger hit the other day, didn't it? after the mortgage rescue plan was announced?

 

[PapaG]

market took a bigger hit the other day, didn't it? after the mortgage rescue plan was announced?

It's losing every day Obama proposes more silly spending programs. I just wonder if we'll see a true panic sell. Now that the 7500 barrier has been broken, faith in the market could be going fast.

 

[Shooter]

I wonder if any of this is tied to the current non stop bailout schemes designed to help those who don't really need it.

Bingo! We have a winner.

Wall Street knows that Obama's "stimulus" bill is a load of crap, and they're reacting accordingly.

 

[PapaG]

DJIA should be down -200 in a matter of a half-hour or so. Push the panic button and sell!

 

[PapaG]

DJIA should be down -200 in a matter of a half-hour or so. Push the panic button and sell!

Or in 3 freaking minutes! WOW!!!!!!!!!

-204 and sinking. I need a drink.

 

[Shooter]

Or in 3 freaking minutes! WOW!!!!!!!!!

-204 and sinking. I need a drink.

Take your money out of the market and put it into land. That's what I did last summer, and I'm not sorry.

 

[PapaG]

Why isn't the President trying to calm the fears of investors? He's been silent all week as it is crashing.

 

[AgentDrazenPetrovic]

Why isn't the President trying to calm the fears of investors? He's been silent all week as it is crashing.

because the more it crashes, the more unlimited power he will position himself for. more spending measures, more people giving up to "save" this economy...thanks to the government.

 

[Masbee]

Market quickly down another 80 points in 30 minutes. -177 and falling.

Perhaps this is the afternoon panic sell I was talking about in the initial post.

The indexes last week smashed through their long established technical support levels. For the Dow as an example, the next strong support level is not until around 7200.

The previous worst two post war stock market slides (73 & 02) shaved nearly half off the market, which this time would take us near....., you guessed it, 7000. Didn't happen last week. Avoided or just delayed?

Even assuming the government rescue and reforms to the financial system work reasonably well, that will do nothing to prevent a recession, it will only prevent immediate systemic collapse and deep depression. Best case, the economy is in store for some tough months ahead as we go into a recession, which will crush corporate earnings, which will drive the market back down.

And just because the government finally started pushing the right buttons, do you trust them to not make some mis-steps on the way?

And in bear makets, there are always bear market rallys, and retesting lows.

Just my worthless opinion, but I would guess there will be oportunities in the future to be purchasing stocks at today's prices, if not lower, possibly a lot lower.

So, without knowing what the government policies would be, and back in October, it was pretty clear that the stock market would have some relief rallies and would eventually retest the lows, if not smash through them.

Since that was the case, I think that argues for government policy being less important in the short and mid-term than many would think.

This thing has to play out. Not much anybody could have done about it.

Is this retesting of previous lows concerning? Not really. Not yet. Has to fall a lot further to signal complete disaster.<!-- / message -->

 

[WarriorFan]

Does anyone have any idea what will happen if the banks do end up becoming nationalized? A good portion of my holdings are in the financial sector and I keep thinking there's more good buys out there. Will Gov ownership infuse new cash and help them rebound or are the shares going to be worthless?

 

[Masbee]

Does anyone have any idea what will happen if the banks do end up becoming nationalized? A good portion of my holdings are in the financial sector and I keep thinking there's more good buys out there. Will Gov ownership infuse new cash and help them rebound or are the shares going to be worthless?

Nobody knows, but a good bet would be that sharholders interests would be compromised.

In a pure nationalization, the govt admits that the bank(s) is bankrupt, but, instead of going to a bankruptcy court, the govt takes over the bank to keep the system functioning. In a bankruptcy, the shareholders are wiped out. Thus, it becomes politically difficult to give the shareholders any relief in that process.

 

[Rozza5]

I agree, this is all Barack Obama's fault.

 

[The_Lillard_King]

I can't wait for the inflation that is sure to start surfacing later this year.

Why can't you wait for this . . .are you enjoying the state of the economy?

 

[The_Lillard_King]

Or in 3 freaking minutes! WOW!!!!!!!!!

-204 and sinking. I need a drink.

Why report all this and not report the end of the day results . . . dow down 100 points. I think you are enjoying bad news.

Me, I could care less, just like the the home buyers who got themselves in trouble, if you gave all your money to those fellow on wall street . . . well, accept that these things happen on wallstreet. I don't trust the whole lot of them.

I like shooter's idea, pull your money out and find somewhere else to invest.

 

[PapaG]

Why report all this and not report the end of the day results . . . dow down 100 points. I think you are enjoying bad news.

Me, I could care less, just like the the home buyers who got themselves in trouble, if you gave all your money to those fellow on wall street . . . well, accept that these things happen on wallstreet. I don't trust the whole lot of them.

I like shooter's idea, pull your money out and find somewhere else to invest.

Is being down 100 points and 600 since the signing of the bill good news?

Also, investing money isn't going to mean much once the inevitable inflation starts to hit us. Unless you start investing in canned food, I suppose.

 

[PapaG]

Why can't you wait for this . . .are you enjoying the state of the economy?

I was being facetious. I'm not the one who admits blind trust in a politician, am I?

 

[The_Lillard_King]

I was being facetious. I'm not the one who admits blind trust in a politician, am I?

I'm not the one who pretends to know more about the economy than the president and his advisers, am I?

 

[The_Lillard_King]

Is being down 100 points and 600 since the signing of the bill good news?

Also, investing money isn't going to mean much once the inevitable inflation starts to hit us. Unless you start investing in canned food, I suppose.

I was wondering why you kept posting how the dow was going lower and then you stopped when the dow started going up again.

And you are saying teh president needs to be more positive, but you are being extremely negative about the future. Are you suggesting the president should lie to us . . . because the Bush days are over.

 

[PapaG]

I'm not the one who pretends to know more about the economy than the president and his advisers, am I?

Where did I say I knew more about the economy? Although is Obama's doing a nice job following the Alinsky model, and that has nothing to do with reviving the economy. I'm amazed at how quickly things are happening.