Whoops.
This is your economy on Dubya. Sorry to all the investors who are suffering through this one. I am trying to learn more about this strange world, and have been thinking that the only sensible thing to do right now is to buy precious metals, such as gold, but then I see gold is down a bit too. Not like the 10% the Dow has lost in the past couple weeks, but still- it's inconsistent with my understanding. I think the attempted bailout/stabilization efforts from the Fed and other central banks may have something to do with it, but at the same time- what was the total dollar numbers injected last week? I'd heard $168 Billion from the Fed alone, and then other sources on top of that. That money is gone AND the Dow is down 10%. Also interesting to note is the consistent bleed of value. If the market drops enough, trading is halted (I think it's 500 points from the Dow, but I don't know for sure). If I'm right on that, this means that if this loss were accelerated just a little, the market would have closed twice, and been threatening a third shutdown.
Yeah, and if a frog had wings... I know. I don't expect that we're anywhere near the bottom of this slide.
Labels: Finance
posted by Stucco at 10:43 AM
10 Comments:
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Jaysus. Talk to O.
What goes up, must come down. We love to forget that.
Oh, and lending money to people who lack the ability to repay it is bad too.
Can't we go back to talking about socks not stocks?
My family is doing a lot better now than under the Clinton tech boom..even with less income.
I don't think the Pres has much to do with this one.
I'm more concerned about his lack of regard for civil liberties.
The economy has to breath like an accordian.
As much amusement as people get pinning everything on the hapless one, one could have expected this downturn the way one would expect rain in Seattle.
If you have the cash, the best investment would be in distressed properties and the rental scene.
Lots of people are heading toward becoming renters again, and there are properties to be had cheaply because of the flooding defaults.
You have to love being a landlord, though.
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Spending hundreds of billions in iraq and afghanistan certainly can't be helping matters. We're bleeding money. The amount they're putting back in is hardly enough to make a dent. And, of course, the markets are run entirely by people who have the emotional maturity of puppies. With the way this administration has been running things it's no surprise that confidence in the US is so low.
As for doing worse under clinton, i find that hard to believe. Maybe taxes were a little higher but everything else was going pretty well, including a budget that was in the black. Remember when NYC declared bankruptcy? I wonder how long before it's a national thing.
Stucco, what exactly happens if they suspend trading?
Lazaro - ¡Gracias por tu visita!
Lex - all too well.
Pants - I did. Wow.
Meno - everything that goes up must come down? Does that apply to the level off bullshit around here?
TTQ - Bend my arm! Schmoopie and I were talking about how we need to setup anonymous porn blogs under different names, as so many of our ideas for blogging are wildly inappropriate. I'm inclined to just be inappropriate here. I don't think anyone who knows me would be surprised by ANYTHING I post, and I don't have that concern about offending people.
Hammer - To be sure, I pin this one as much on Greenspan as Dubya, but I don't exonerate Chimpy. This fools errand in the middle east and his spendy ways are at least PART of the problem. Glad to hear you and yours are not feeling the pinch.
Scott - If your view is macro enough, then you are absolutely right, as was evidenced by the Panic of 1857, and Market Crash of October 29, 1929. That doesn't mean that there wasn't a WHOLE lot of pain and misery for a lengthy spell after those events.
Generalissima - When trading is suspended they close early or don't open at all, like what happened 9/12/2001. No changes and almost no activity.
Maybe it's time to take my cash out of the bank and hide it in my mattress.
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