Dow drops below 10k

[fistofrage]

Re: Dow drops below 10k

newspapers can only write so many speculative stories. They report the news, not make it. As much as you're right that more mainstream papers should've been more focused on it, at the same time if they continued to hammer something that was still waiting happen like this, that newspaper would be crucified by its peers and rejected by its readers. Reporting on the examples you listed, such as bird flu and tainted tomatoes, was necessary because those were real issues that were already affecting certain communities in one way or another.

But still my point is, this mess started long ago, just like a few "bird flu" cases started that whole reporting trend. Banks started going down a while back they just seemed to ignore the tip of this iceberg, but wouldn't ignore the tip of the iceberg for things like tainted Chinese milk, etc.

But they report human interest stories, and I guess the fear of strange and obscure diseases outweighs the fear of financial crisis in the mainstream.

[stewaat]

Re: Dow drops below 10k

Another day with a triple digit loss in the market value. Hooray bailout! [/sarcasm]

[fishepa]

Re: Dow drops below 10k

If we didn't have the bailout Wall St would still be "scared" and the same thing would happen. I hate Wall St.

[boomhauertjs]

Re: Dow drops below 10k

Is it too late to cancel the "bailout"?

[mgoblue]

Re: Dow drops below 10k

If we didn't have the bailout Wall St would still be "scared" and the same thing would happen. I hate Wall St.

My thoughts are that we were gonna have this fall no matter what, and the bailout will enable things to start recovering sooner (less horrific a fall compared to no bailout). Things will still suck for a while though, there's no "quick fix" because the government and lenders were morons and let all these crap loans go through.

[theaub]

Re: Dow drops below 10k

I wrote a really good essay on the bailout today for my executive branch class. I wouldn't be surprised if you see me published in a year or two; my insight is unparalleled.

Did it blame Tony Franklin for the crisis?

[fistofrage]

Re: Dow drops below 10k

Did it blame Tony Franklin for the crisis?

The barefoot kicker?

[callmetaternuts]

Re: Dow drops below 10k

Just a fun fact. 7 trading sessions ago, the Dow was at 11,200, it currently sits at 9,400, a drop of approx 18%. Thats unbelievable. Stick it out, find those buy and hold opps and ride it back (when it happens)

[superjames1992]

Re: Dow drops below 10k

LOL, the bailout is really making a difference! 500 point drop today! Way to go Congress!!!

[/sarcasm]

[fistofrage]

Re: Dow drops below 10k

LOL, the bailout is really making a difference! 500 point drop today! Way to go Congress!!!

[/sarcasm]

People who are focusing on what the Dow is doing to determine the effectiveness of the bailout really need to spruce up on their economic knowledge. Do you understand what is happening in the world markets right now? Do you understand all the components that are driving the Dow?

[sportsdude]

Re: Dow drops below 10k

But still my point is, this mess started long ago, just like a few "bird flu" cases started that whole reporting trend. Banks started going down a while back they just seemed to ignore the tip of this iceberg, but wouldn't ignore the tip of the iceberg for things like tainted Chinese milk, etc.

But they report human interest stories, and I guess the fear of strange and obscure diseases outweighs the fear of financial crisis in the mainstream.

my point was that they can't sit around and write a bunch of stories speculating what might happen if the banks continued to go down. Nobody could've looked down that road way back then and said definitively what was going to happen, thus there is no need for a bunch of stories guessing what may or may not happen.

[superjames1992]

Re: Dow drops below 10k

People who are focusing on what the Dow is doing to determine the effectiveness of the bailout really need to spruce up on their economic knowledge. Do you understand what is happening in the world markets right now? Do you understand all the components that are driving the Dow?

I know the Dow is not a sure way to predict the economy and I know that economies around the world are falling, but Congress acted as if this would spruce up the stock market, which it hasn't.

I've heard from some experts before all of this began that the Dow was going to drop and settle around 8,500 or so and they may turn out to be correct.

The Dow often predicts what the economy will be like in six months, so I think the Dow may also be predicting a certain presidential candidate (not naming names...) winning which would probably be detrimental to the economy.

The point is that this bailout is absolutely stupid. As most socialist programs do, it rewards bad behavior (companies offering bad loans and people owning houses they can't afford) and punishes good behavior (the majority of Americans who are paying their mortgages on time).

[Hooe]

Re: Dow drops below 10k

I know the Dow is not a sure way to predict the economy and I know that economies around the world are falling, but Congress acted as if this would spruce up the stock market, which it hasn't.

I've heard from some experts before all of this began that the Dow was going to drop and settle around 8,500 or so and they may turn out to be correct.

The Dow often predicts what the economy will be like in six months, so I think the Dow may also be predicting a certain presidential candidate (not naming names...) winning which would probably be detrimental to the economy.

The point is that this bailout is absolutely stupid. As most socialist programs do, it rewards bad behavior (companies offering bad loans and people owning houses they can't afford) and punishes good behavior (the majority of Americans who are paying their mortgages on time).

Correct me if I'm wrong, but my understanding was that the bailout bill is mainly acting as a safety net from a major credit crisis. If credit had frozen, many businesses, large and small, wouldn't be able to buy inventory, pay employees, and so forth, which would have had, putting it nicely, dramatic and cascading effects on the national and international economies. On a smaller scale, consumer credit cards would also have ceased to work in a credit freeze.

To that point, and assuming my (admittedly shaky) understanding of the problem and legislation is correct, I think the bailout is fulfilling its intended purpose.

[mgoblue]

Re: Dow drops below 10k

Correct me if I'm wrong, but my understanding was that the bailout bill is mainly acting as a safety net from a major credit crisis. If credit had frozen, many businesses, large and small, wouldn't be able to buy inventory, pay employees, and so forth, which would have had, putting it nicely, dramatic and cascading effects on the national and international economies. On a smaller scale, consumer credit cards would also have ceased to work in a credit freeze.

To that point, and assuming my (admittedly shaky) understanding of the problem and legislation is correct, I think the bailout is fulfilling its intended purpose.

To my (also admittedly shaky) knowledge you're correct....Without a bailout a small business wouldn't have been able to get a loan to upgrade, pay staff, whatever, so people would eventually get laid off. This helps fix that, but there's no easy fix to the whole situation.

It's gonna be nasty, we're just hoping not great depression nasty.

[OSUFan_88]

Re: Dow drops below 10k

There was no miracle fix to this. The economy was going to go down either way, that's the way wall street is. They are the biggest over reactors in the world. But that is what they are payed to do.

If we didn't have the bailout, you would see banks, companies, and pretty much the entire economy go under. I want to make this clear, there was no magic fix to this situation, the bailout was to prevent the economy collapsing, the bailout is now going to prevent the fall of the economy, but it's going to get worse before it gets better.

You know what everyone should be doing right now? Buying more stock. Because when the market bounces back, you can make a huge profit out of it.

If this continues for the rest of the week and into next week, then you need to start to worry. Soon, though, I expect it to level off and it'll slowly climb back up.