Dow drops below 10k

[callmetaternuts]

Re: Dow drops below 10k

That always seems to be their M.O. I'd wonder what was going on if the media wasn't inducing panic, or blowing something way out of proportion, every day. This situation is obviously bad but instead of reporting something like taternuts posted originally, it's much easier to say the sky is falling and we are doomed.

Its a combo of what you and MN say. Its ratings driven. We are just as guilty as the media in blowing things up (think of how many times you tell someone its the best this, or worst that, or i had the best burger in the world), its blowing it out of proportion so people will understand and focus on what you are saying.

Back to this whole "market sucks, Dow down" concept. We've said it before. This wasnt overnight. It takes these failures and scandals to show us bigger problems in the system. Remember Enron? Cooking the books, before then, it was unheard of, now there are tighter accounting rules. Bear raids, driving prices down, cooking the books, insider trading, speculation on new issues, all of these things opened our (read: the gov't's) eyes and made us realize we need more regulations. This has been going on since the 1920's. There is a problem, its not noticed until it causes issues (companies failing, economy suffering), when its noticed, companies fail, regulations are passed and we re-build. Then 20-25 years later, we have another issue come out. All of these problems that we know so much about now (insider trading, cooking the books) werent seen as issues or as prevalent before the 87 crash and Enron scandal respectively

So now, we have a new problem. Sub-prime, over-leveraging the monies available. We will now tighten regulation and proceed to re-build. And in a few years, we will have a new issue. But dont be fooled, this isnt the first or last we've seen here.

[nyisles16]

Re: Dow drops below 10k

It's not only about stock prices that fall, how about the lives of people being affected? The worst part of the falling stock prices is that now many companies need to shutter employees -- try finding a job in this environment -- not good at all.

What is scaring me is reading about people being out of work for months and months.

So there is just more to the story than just "media portrayals" -- this is very real, and the economy is in bad shape.

While Gecko thought "greed is good", greed is exactly what brought us to this point.

[callmetaternuts]

Re: Dow drops below 10k

I completely agree, this isnt an issue just centered on Wall Street, but everywhere. Jobs are surely affected, as our living standards. When the economy is in trouble it hits everyone, not equally, but it does affect us all. Prices rising affect us all, the illiquidity of the dollar, and the funds beign tied up affects us all, all you can do as an individual is be smart with your money. Cutting back, being frugal, saving, these arent bad things. Makes you think twice about that $4.50 cup of coffee from Starbucks or the $12.00 movie ticket. Im not saying to go dig a hole in the ground and bury you and your money in there, or to sit at home with all the lights off, but just be smart. This will cycle through and things will pick back up.

Where you see the most impact is the market, thats a daily item, heck a living organizsm that is tracked by the trade and you can see the results there, but it has made its way to all of us. You cant measure (accurately) the affect it has on Mr And Mrs Smith, but you can see how it affects the national and global economy and individual stocks.

We are in the process of sorting this out, and as in the past, the bad companies, the crooked companies and individuals will fall, their assets will be bought and the circle of economic life will continue.

[dave374]

Re: Dow drops below 10k

We are in the process of sorting this out, and as in the past, the bad companies, the crooked companies and individuals will fall, their assets will be bought and the circle of economic life will continue.

That's the issue IMO. The companies may have fallen, but the individuals got huge buyouts and got rich. Some of these guys should be in prison, not in a gated community living off their buyouts.
I have yet to read one story where the government wants to go after the top executives of these scum companies. Not one.

The people feeling the most pain, as usual, from this are the middle and lower class.

[fistofrage]

Re: Dow drops below 10k

I can speak from first-hand experience here. I am a newspaper editor.
I can tell you honestly - we don't run stories to scare people. We run stories we think they'll read. Period.
I can never remember telling a reporter - not even once - to slant a story for sex or disaster appeal. 99% of the stories you read, honestly, are just a reflection of what's happening out there.
I know a lot of people see the media as liberal, but you'd be shocked at how surprisingly balanced many newspaper staffs are. Hell, my co-worker is a conservative Christian. She believes in end times ... and thinks this is it.

Feel free to ask me questions about your perceptions of the media.

Yeah, I understand that you report on what people will read. Its no suprise that people read about stuff that might effect them physically. But the media decides what people can read. You can't read it if its not printed.

But any mainstream newspaper could have starting warning people of this impending correction and the possible looming disaster of the sub prime lending boom long before it happened. But they chose not to. We all read the papers, front page stories are about tragedy and pending tragedy. Thats what people like to read. But instead of reporting on the markets and making that front page news a year ago, the "bird flu" got the front page.

Its not your fault, your job is to sell papers. Its the publics fault. But now the media is running with it so so they can keep Joe Public all up in a lather and scared about their financial future.

[dave374]

Re: Dow drops below 10k

But the media decides what people can read. You can't read it if its not printed.
True, but it's mostly you the reader who decides. Trust me, when I put together an entertainment page - the last thing I wanna read about is damn American Idol. But it's what readers want, so I get an airplane bag, make a deposit, then put the story in.


But any mainstream newspaper could have starting warning people of this impending correction and the possible looming disaster of the sub prime lending boom long before it happened.
I suspect most were in the dark, like many investors.

See above...

[callmetaternuts]

Re: Dow drops below 10k

That's the issue IMO. The companies may have fallen, but the individuals got huge buyouts and got rich. Some of these guys should be in prison, not in a gated community living off their buyouts.
I have yet to read one story where the government wants to go after the top executives of these scum companies. Not one.

The people feeling the most pain, as usual, from this are the middle and lower class.

I agree, but we as a society have allowed it to get there. They sign contracts, and are given performance based payouts based on results or re-hire, not based on future issues. I think it def needs to be toned down, and jail time as well as garnishing of wages needs to take place. I in no way am advocating these guys getting that kind of money, but i am advocating prudence and diligence on our (middle class) part

[stewaat]

Re: Dow drops below 10k

After youtubing a lot of political and economical statement videos and seeing the amount of money many members of the House and other big wigs got, I feel sick to my stomach.

Life isn't fair...but it is terrible to see how people can be rewarded for there mistakes.

In one video the Freddie Mac CEO called houses "riskless".

ARE YOU KIDDING ME!

[fistofrage]

Re: Dow drops below 10k

See above...

Yeah, but you say most mainstream newspapers were in the dark a year ago about this. I agree, but isn't it their job to find relevant stories, research and report. There were plenty of well respected indiviulas who saw this coming and wrote on it in less mainstream journals. The thing I don't understand is that if someone mumbled the black plague may break out again it would be front page news, but when it was financial black plague, they missed the boat until it already happened, now they are relishing in it.

Because they certainly go overboard reporting when something like the "bird flu" or "Mad Cow" or tainted tomatoes or Anthrax comes along. They go out and find people who have credibility and can predict the worst case scenario. Why wasn't this done with the pending crisis?

[superjames1992]

Re: Dow drops below 10k

The Euro continues to drop like a rock compared to us as does the Pound. In another month or so, if this keeps up, the Dollar will pass the Euro! I suppose that this has a lot to do with the financial downturn occurring in Europe now.

It's nice to know that when you're economy goes down, the rest of the world's does too! China's economy falters because we are not buying as many goods from them. Our economy is deeply interwoven with the economies of Europe and Asia, so they suffer as well. And when the price of oil and other commodities drops, Russia's economy, which is dependent on commodities (which are all going way, way down; natural gas has dropped for over $12 to $6.50, oil is almost half the price it once was, ect.), is now going into massive turmoil.

[BunnyHardaway]

Re: Dow drops below 10k

You know it's weird, when I had Economics last year my teacher told us that in this current time period it's near impossible to find a job, because not only are employers cutting back, but if they hire anyone it'll be a full-time adult who needs it and not a part-time student. In the last 6 months I've applied to 10 different places (some multiple times) who are STILL hiring and I've gotten a total of 2 interviews.

On another note, I'm tempted to invest a small amount of money in stock...they have nowhere to go but up.

[Cebby]

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.

[OSUFan_88]

Re: Dow drops below 10k

my insight is unparalleled.

But is your style impetuous?
Is your defense impregnable?

[sportsdude]

Re: Dow drops below 10k

Yeah, but you say most mainstream newspapers were in the dark a year ago about this. I agree, but isn't it their job to find relevant stories, research and report. There were plenty of well respected indiviulas who saw this coming and wrote on it in less mainstream journals. The thing I don't understand is that if someone mumbled the black plague may break out again it would be front page news, but when it was financial black plague, they missed the boat until it already happened, now they are relishing in it.

Because they certainly go overboard reporting when something like the "bird flu" or "Mad Cow" or tainted tomatoes or Anthrax comes along. They go out and find people who have credibility and can predict the worst case scenario. Why wasn't this done with the pending crisis?

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.

[BunnyHardaway]

Re: Dow drops below 10k

But is your style impetuous?
Is your defense impregnable?

His essay will probably fade straight into Bolivia.