Financial Armageddon

SGaynor

SGaynor

Well-known member
Dec 6, 2006
7,148
162
52
Bristol, TN
Wow, Dow is down 550 and counting (I think we could hit -1000 today), credit markets are locked up, Europe is in disarray on monetary policy...:eek:

So much is going bad. Anyone see a way out? Will this be a bad recession or do we break out the d-word?

Things to ponder and discuss....glad to have DWEB back.
 
landrovered

landrovered

Well-known member
Nov 28, 2006
4,289
0
back to the barter economy, glad I still have horses so we can plow fields and get to town!
 
gugubica

gugubica

Well-known member
Dec 8, 2006
641
0
Middle O' Missouri
All this is an inevitable market self correction. We are not going to be any worse for the wear when the dust settles. This had to happen eventually. It could not have remained falsely inflated for ever.

The Dow is down, it is getting closer to a sustainable level.

Credit is not really locked up, it has just slowed. It was at a stupid high level. Not everyone needs to borrow money to buy a house, or a car or a plasma TV. This trend and dare I say "lifestyle" is part of the reason the markets inflated to the level they were (and now the reason they are deflating to the level they arguably should be).

The worst thing that is going to come of all this, IMHO, is the socialization of the debt created.
 
brianhoberg

brianhoberg

Well-known member
Apr 16, 2007
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San Antonio, TX
www.brianhoberg.com
Yeah, but that $700B was going to solve everything and get us back on track. Not considering that one week ago we had a $1.2T (yes, trillion) dollar loss on the market. Not considering now that the European markets are tanking and we're trading below 10,000 which is the worst since October, 2004.
I thought they had it all figured out...way to use your heads Congress, bailout or not, too much money was lent, spent, and now we're tanking faster than the Titanic...awesome job!
 
jmonsrvr

jmonsrvr

Well-known member
Apr 20, 2004
819
0
montara, ca & newport beach, ca
when times are tough and the market is down it's time to invest! this was bound to happen. but wait i thought we werent in a recession- isnt that what the current head of this country is telling us? LOL

if you can invest wisely then take advantage of the all time lows. GE is at an 11 year low today. time to buy especially with warren buffet dumping tons of cash into the stock!
 
brianhoberg

brianhoberg

Well-known member
Apr 16, 2007
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San Antonio, TX
www.brianhoberg.com
You are correct that right now is an excellent time to buy. Any investor worth his practice will tell you that much. The problem is that so many people don't have the money to invest at the moment due to the losses already felt in the 401K retirement accounts and pension funds.
 
A

apg

Well-known member
Dec 28, 2004
3,019
0
East Virginia
gugubica said:
The worst thing that is going to come of all this, IMHO, is the socialization of the debt created.
Click to expand...

And once again, we are in total agreement. But it really does seem like a 'new world order' is being created on the sly, with the assets of some of the biggest 'players' being acquired for .6 cents - that's $0.006 - on the dollar. Those that can afford to weather this financial storm are going to do well afterwards. I wonder if Haliburton has entered the securities market yet....

The socialization of risk and debt is mighty troubling and creating bad precedent: the enduring lesson of this administration is that there is no consequence for failure. No accountability. Drive your company into a hole and walk away with millions in a golden parachute. Cheat the stockholders blind - and get a bonus. Now the taxpayers of this nation are on the hook.... One of the frequent posters here criticizes FDR for his New Deal 'socialistic' tendencies. But at least we as a nation got something out of that era - not just a mountain of debt with nothing to show for it.
 
az_max

az_max

1
Apr 22, 2005
7,463
2
I kick myself for not having an account I could buy stock with. Wachovia was down to $.01 last week. Had a high of $6.50 by the end of the week. I could have made a killing by investing $50 of my money! argh! :banghead:
 
gugubica

gugubica

Well-known member
Dec 8, 2006
641
0
Middle O' Missouri
apg said:
And once again, we are in total agreement. But it really does seem like a 'new world order' is being created on the sly, with the assets of some of the biggest 'players' being acquired for .6 cents - that's $0.006 - on the dollar. Those that can afford to weather this financial storm are going to do well afterwards. I wonder if Haliburton has entered the securities market yet....

The socialization of risk and debt is mighty troubling and creating bad precedent: the enduring lesson of this administration is that there is no consequence for failure. No accountability. Drive your company into a hole and walk away with millions in a golden parachute. Cheat the stockholders blind - and get a bonus. Now the taxpayers of this nation are on the hook.... One of the frequent posters here criticizes FDR for his New Deal 'socialistic' tendencies. But at least we as a nation got something out of that era - not just a mountain of debt with nothing to show for it.
Click to expand...
With you 100%, I don't like it one bit. We are going to look back and regret this...

eta: Bush, the so called "conservative" just killed the free market. Government will not give up this opportunity to control things.

"It is our money, so you have to do what we say."
 
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Lake_Bueller

Lake_Bueller

Well-known member
Aug 11, 2004
2,105
59
56
Beloit, WI
A quick few reasons this is "corrections" and not a recession/depression.

1) Energey (oil) is also dropping in price.
2) The dollar is up in the international markets.

In all past recessions, those are two areas that have done the opposite while the markets tanked.
 
noee

noee

Well-known member
Apr 20, 2004
1,887
0
Free Union, VA
I've been saying it all year: cash is king. If you've prepped appropriately, you might experience the buying opportunity of a lifetime. If you have continued to live paycheck-to-paycheck, given the warning signs since early last year, then you will reap what you sow.

There have been many analysts "showing the way" and many have pointed fingers and called them nasty names. There was plenty of warning on this and it will be tough on the retiring boomers.

Over 70% of this economy is based on personal consumer expenditures (or it was) and now that base is essentially being wiped out. Filling that gap will be the challenge, there does not appear to be another debt-bubble to inflate to hide this weakness any longer.

Brother, can you spare a dime?

;)
 
DiscoJen

DiscoJen

Well-known member
Aug 27, 2004
3,652
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54
The Lou!
Dammit, it's so tempting to go out and invest right now. I've never invested before so the fear of the unknown is holding me back. I've got a decent stash and I'm a "cash-only" type of girl, but terrified to make the jump.

But even more fearful is the socialistic can of worms that have been opened.
 
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