Recession Fears Blanket Wall Street; Dow Plunges 300 Points

Originally posted by infinite
Interesting fact;

This is the worst start for the US markets since the 1920s

.... infinate, that really made me choke on my morning redbull...

I knew all along this was a false boom. You can't cut taxes and increase spending and wage two wars and rape the subprime market all at the same time.

Look out tomorrow. It might be another Black Friday. Heck, it might be a Black & Blue Friday.

Originally posted by JacKatMtn


Well this is not unexpected but where will the DOW bottom be 11,000, 10,000?

I don't know enough to predict the bottom but many of the members here understood that this recession was overdue.

Keep in mind that i know next to nothing about this stuff, but i do recall that immediately following sept 11 the DOW lost quite a bit i believe we hit 6,000 or 7,000 later on that year. Why wouldn't the bottom be 0 ?

Originally posted by JacKatMtn
where will the DOW bottom be 11,000, 10,000?

7,000

better hang on to your wallets

Please place your portfolios in the trash can position
and fasten your IRA belts and we thank you for flying
with Bush Airlines. Hope you'd had a wonderful flight.
now Please place your head between your legs and
kiss your a$$ goodbye.

and so the next big wealth transfer begins, lets see who the winners are this time, we already know who the losers are.

This is great! As all of the emotional buyers freak out and sell with huge losses, everyone else is making a killing off of shorting the market. Come on, lets go to dow 1000! Nothing like making easy money off of the stupid people who freak out over recessions. Its a fire sale opportunity every time we hit a cyclical recession. Lots of good deals on stocks. And when the emotional investors come back to buy (since they buy high and sell low), I'll be ready to sell their stocks back to them for a huge profit!

Originally posted by turbokid
and so the next big wealth transfer begins, lets see who the winners are this time, we already know who the losers are.

China will come in and start buying massive amounts of stock and big name companies /corporations and own more of the US than its citizens.

Bounce back today.

Futures show US is to open up up a 1%, hopefully we maintain this level throughout the day and it does not drop.

I don't think the full impact of sub prime crisis is known...it seems inflation is here(highest in 17 years I think headline said)..jobs are getting scarce. I've seen Citi cuts in 10s of thousands...there is no quick fix.

reply to post by BlackProjects


Of course,

no one knows the sub prime bill. The potential could be $1 trillion if all deals have gone bad, but Wall Street is predicting its currently $100 billion and about 50% write off could be the deal.

Originally posted by LightinDarkness
Nothing like making easy money off of the stupid people who freak out over recessions.

Well good for you, but outside of your world people are hurting, people are struggling to maintain their homes, pay the increased costs of living, and alot of these hard working people don't aspire to be filthy rich, and would definitely not be inclined to take advantage of others misfortunes. They only seek to be able to own a home and raise a family and try to put something away for themselves when they retire.

A good portion of these people don't invest in stocks individually, they have retirement funds, find a broker who takes care of their nest egg, they put trust in those people who tell them that their retirement accounts will be safe.

When the markets take this tumble based on BAD business decisions and greedy corporations and individuals, these so-called stupid people, the regular folks who wouldn't have anything to do with your world, are the one's who pay the price.

I know it doesn't bother you, I wouldn't expect it to.

reply to post by infinite


Is not stimulus package Infinite, this is nothing more than empty promises to keep the American people that have not clue how the economy in this nation works from panicking and stop paying their credit card debts and stop shopping in wal-mart to save a few bucks in case the need to come out with money for food and gas.

Our government is deceiving everybody and the Markets knows exactly what they are doing.

More food stamps, welfare checks and 600 dollar rebate income tax checks are not going to fix anything.

The markets know this we know this and the world knows what the American corporate rule government is doing.

This is nothing but a fake stimulus.

No a word about wealth builders, industries, stopping outsourcing and keeping jobs in American or bringing jobs in America

We are heading to become a nation of foods stamps and welfare checks to be able to eat.



[edit on 18-1-2008 by marg6043]

All the mid index are in bear mode now,

Russell 2000, FTSE 250 are examples of markets experiencing 20% declines. If I can, I like to share the FTSE AIM Index with you (it's made up of smaller companies)



As you can see, smaller companies have been hit hard by this credit crunch and are feeling the worse of it.

reply to post by marg6043


It's dead already.

Investors don't like the sound of it and it's too little, too late. Tax rebated are not going to solve this problem.

Anyone see this article on the front page of Yahoo, is this wishful thinking, positive spin or the real deal?


Stocks rebound after huge drop

Wall Street rose sharply Friday as a strong outlook from IBM encouraged investors to buy back into stocks after their huge drop this week. The Dow Jones industrial average rose more than 100 points in the first minutes of trading.
The market remains extremely skittish, however. The Dow, having suffered its worst three-day plunge in over five years, has fallen to levels not seen since last March.

yahoo link

reply to post by infinite


What's your take on this op/ed from today's WSJ:

No Stimulus Gimmicks, Please

Washington is abuzz these days with calls for economic stimulus. The presidential candidates are eager to "rescue" voters, and the administration doesn't want its final chapter to end on a sour note.

The current tax code -- designed to discourage capital accumulation and projected to collect rising levels of revenue in increasingly complex and distortionary ways -- does need serious reform. But what we're getting instead from politicians and economists are legislatively challenging, economically questionable and politically motivated policies to address a potential problem best handled by the Federal Reserve.

I tend to agree that the stimulus package isn't going to help, but what I get from this article is that the author's seem to want breaks for business, I also didn't like the portion when they said this:

Congress should explore public policy that will encourage those workers to find new jobs, acquire new skills or relocate to more prosperous locations. That too should be the focus of debate this year.

If they think a stimulus package will take months to implement can you imagine how long it would take for this type of planning to take place?

The way things are going alot of these people will be without jobs (find new jobs), which may include training in new skillsets (acquire new skills), and quite likely have to move somewhere to get these new jobs (relocate) all without the help of congress.

I don't think anyone has THE answer yet, and this piece makes sense for the people responsible for this crisis in the first place isn't it?

reply to post by JacKatMtn


New skills for what?
We lose the service sector and jobs go poof.
Are they going to teach us survival skills? Because those are the skills we will need.



(Sorry excuse my negativity, I am in a very bad mood because of the fat cats, nightmares all night about fat cats sitting on top of me trying to squeeze my last dime out of me like the wamu commercial:lol

reply to post by SEEWHATUDO


Have to wait and see, there has been activity like this recently after a big drop the previous day.

People jump in and when it moves up there has been a point during trading where profit taking happens and it dives down again.

We should get a better idea in the early afternoon if this gain will hold.

It could get a temporary spike after Bush's presser on the stimulus plan, I am sure they hope it will work that way.

And here, folks, you have our government's way of managing the economy. Commony referred to as the Katrina Economic Policy. Essentially what it says is: don't acknowledge the storm you see coming; when you do, characterize it as far less serious than it is; then, when it's just about too late, drive some ice around the country for several weeks and say you're doing something.

And these monkeys get to write books and give speeches at universities touting all their experience and knowledge. Unbelievable. And the sad part is, no one goes to jail (oh, sure, if you're Enron and you mislead your investors you go to jail but not if you're the government --- they just skate and amasse their person fortunes) and no one is held accountable. And most of the people are lining-up to elect yet another chucklehead who'll keep financing the wars, borrowing overseas and sustaining business as usual. Oh joy.

Ahh my friend lightindarkness I knew you would come but I posted this in december about the economy and how the government is hiding it
www.abovetopsecret.com...'

but with that being said once again cute dog and good post we are in a recession and there is no denying it. Well the government is...Bernanke goes on capital hill yesterday and insists that we are not in a recession when all americans with common sense knows we are...lightindarkness doesnt think we are but thats besides the point (My poke at light ) The government doesnt want us to know the truth because they know people will panic but the sad thing is the smart money is getting out hence all the selling in the market and for the people who rely on the government for their info when the government finally comes out and admits it it will be to late the normal people will go to sell and will have to sell for way less or if it can be sold at all...and when I say sell im talking stocks, currency, real estate, bonds, cars whatever any asset.