Stocks Wipe Out As Fears Grow

reply to post by pluckynoonez


I have become well aware of how people at this forum see it. Unfortunately for them, they don't understand economics. Sure I made a bad assessment yesterday about how the market would react to the Feds actions, but it was a short term negative reaction. Short term sellers are misrepresenting the market is all.

Anyone that is going to do long term investing, this is the time. I have a good feeling that JPmorgan is a company that will see good times in a year or two.

Also, the short term sell offs are nothing more than a result of speculative market. As a result, they could just as easily swing back 400-500 points with some good news. As for the long term market, this is just a moderate set back that we will get through.

I noticed they weren;'t saying don't panic today...

After taking a modertly decent econmics class, I say I have a fair assumption in general market predictions, with signifigant help from media outlets.

Yesterday, I was pretty confident that the Fed bailout of AIG would at least slow down the drop, but with today with the DOW dropping 449 points, were headed in to that dreaded downward spiral.

I was also thinking, all it takes is one firm or media outlets saying it might be worth-wild to take out your investments in currency. BAM! Bank run, were sitting on the proverbial fence. If the Feds do the right thing, were going to slowly gain our economy back, but looking now, were headed into the spiral.

All it takes is some more bad speculation. I'll wait and see, I'm hoping for the best considering I still have some college to pay for, and I am a avid investor and entrepreneur, opening up my own website for profit, which has paid for most of my tuition, I'm hoping that internet traffic won't be affect

reply to post by trek315


Define "gone." Do you mean gone as in filing for bankruptcy? Or would you consider WaMu "gone," if they were acquired?

Just want to gauge the depth of the negativity here.

reply to post by Night Watchman

Investors should really not be panicking. It would do us all good to recall the doom and gloom predictions following 9/11 attacks. By early the next year, the economy was bouncing back.

Yeah but the stock market took a hit after 9/11 because for one most people were fearing all out war or armageddon combined with the fact that wall street was closed for a while. Basically people had more important things to think about.

This new financial crisis is derived from the fact that the economy has been in serious trouble for the last couple of years. The problem here is caused by lack of insight and poor choices on behalf of investors and banks, not to mention severe corporate greed.

Basically alot of people f'd up and now we are seeing the end result.

Oh yeah i forgot to mention one of the causes: a pointless war against innocent people that is costing us all a fortune.

Originally posted by grimreaper797

Short term sellers are misrepresenting the market is all.

I don't mean to be rude, but I seriously think you're WAY off on that assessment.

The shorts aren't speculating because they know there isn't anything to speculate about. This is large companies trying to defray their bad positions where they completely hedged in CDS's while doing nothing else productive within their companies to earn money. They're out on a limb trying to persuade counterparties but there are none. The market is full of bonds, there's no capital, and no one filling the well either simply because they want to hold onto their cash. That's not speculation, that's just good business.

With the credit machine gone, the big boys have gone from risk to survival, that's also good business.

Our market COULD, at the time, handle all the shorts that could be thrown at it with a sound capitalization and funding machine, lacking that though, down she goes. I personally believe that the ONLY sure thing that will save us from oblivion, would probably be a miracle housing boom OR a removal of the American unions (which really made it inappropriate for AMERICANS to buy AMERICAN) in which we start actually making something again that has value. In our 'services' based economy, when there is little need for the services then there is little need to pay us.

Shorts won't make or break the solvency of Large Investment houses under normal conditions. Nevermind Insurance companies. Why exactly do you think AIG is failing in the first place?


Just my $.02,

AB1

I can see Jim Cramer on "Mad Money" saying, "markets down" Buy! Buy! Buy!!! with bulls flying across the screen in ten different directions and lots of mooing sound effects.

It really looks bad. All the craziness of these huge firms going belly up.

I was surprised the Fed didn't cut the main rate from 2% to 1.75 or 1.5. I'm sure several investors were disappointed. Apparently, Bernake did not want to delve into the "Greenspan" territory of 1% where the rate bottomed out a few years ago.

Scary but interesting times. No time to panic but definitely time to prepare.

Random note:

If I were not able to procure a gun, but had a nifty flashlight, woe to the person that came after me as i would definitely have my arms flailing trying to club them upside the head with my cool flashlight!

One might look at just what stocks were plastered...


were those stocks 'dividend' paying stocks
or were they the speculative & momentum stocks ?



& hey!.
i appreciate gold going "UP" an outrageous ammount today....
a much anticipated outcome...for several months now



but---- watch as the PPT takes all of us back down even further !

Right now im glad most of life savings is in cash and not in stocks. Now i just have to keep an eye on the dollar so that if it starts to fall i can quickly convert it to gold or another currency.

Originally posted by princeofpeace
Right now im glad most of life savings is in cash and not in stocks. Now i just have to keep an eye on the dollar so that if it starts to fall i can quickly convert it to gold or another currency.

i would convert it know. when the economy fails and everyone realizes there paper is not backed by gold there will be a mad rush for it. i think that the government will seize all gold much like it did in 1933. that will be the beggining of the end of this "free" country of ours

This would seem to be the most opportune time to be struck hard by the Extremists hell bent on destroying both American and British societies.

Check out this latest situation happening today in Yemen, it could be significant and if there was ever a time for the next terror attack it would be within the next couple of weeks.

"We will strike against all foreign interests, especially American and British interests, accurately and quickly," it said. After the attack, the group claimed responsibility and threatened to target the British, Saudi and Emirati missions in Sanaa

.

Islamic militants have launched a bomb and rocket-propelled grenade attack on a US embassy that killed 16 people in the Yemeni capital, Sanaa. The dead were six Yemeni soldiers, four civilians, one of whom was Indian, and six attackers - one wearing an explosives belt, the country's interior ministry said.

Situation update can be found here:
visz.rsoe.hu...



[edit on 17-9-2008 by antar]

reply to post by N. Tesla


spot on,

gold is useless because the government has the power to simply walk in, and take it. you have no claim to your gold. your merely giving the government money so you can hold it.

800pts in 2 days.

someone said it takes a 10% drop in a day to be a crash, is that true?

well we dropped 7-8% in 2 days.

Problem there is, our economy is functioning on a 1920's system. Its well beyond control or repair.

I think 10% in the 20's was significant, because of the smaller scale and scope of the economy.

I think 8% in 2 days is worse than 10% in 1 day of a 20's economy, because todays economy has so much reach, so much global dominance that it really is a major crash in itself.

yes i didn't not even take into consideration the fact that today everything revolves around the stocks. 10% in the 20s is probably very close to 7 or 8% now. if things get any worse tomorrow there will be no way to recover. it will just snowball until that snowball turns into a world wide depression. the stage is now officially set for the worlds second depression.


hold on to your hats it's gonna be a bumpy ride,

The situation is bad but I believe we will get through it (it may take a painful number of years). There are plenty of financial institutions that are financially sound to compensate for those that are not. The government, in my opinion, is not making things better by intervening and tacking more potential debt on the taxpayers (i.e., you and me).

I think that it is not quite right that the executive branch can perform bailouts putting billions maybe even trillions of taxpayer money at risk without so much as a vote from Congress? I am not sure the taxpayers want to be in the mortgage business, the insurance business or the car business. But that is where we are headed. Even though these are just "bridge loans" - they may very well be "a bridge too far."

We will see what happens...

Gold up 11% today! Pretty sure sign of panic, I think. But I'm a contrarian, so I take it as a sign stocks are near a bottom.

The fact that the Fed is about tapped out and is having the Treasury print more money tells you how far down the road we are. Our Lendors will not appreciate us devaluing their dollar holdings. Without that credit America will go the way of Lehman.

There isn't enough gold in the hands of private citizens anymore to make it worth confiscating.

The powers that be in this country are making a big do-do sandwich and we are all going to have to take a bite!

[edit on 17-9-2008 by sqid4life]

[edit on 17-9-2008 by sqid4life]

Originally posted by Distractions4Nothing
Gold up 11% today! Pretty sure sign of panic, I think. But I'm a contrarian, so I take it as a sign stocks are near a bottom.

good observation ,gold is the de facto go to investment when things are going badly.

considering gold rose by a record amount today one can assume that there has been a similiar amount of panic to cause that rise in price.

Morgan Stanley is beyond desperate and are now saying they won't make it without a merger!

www.tickerforum.org...

Now, understand as previously stated that the people on this forum understand the market extremely well. Several are expecting a rally early on Wall Street tomorrow with a fall late in the day.

The scary thing to me is that not only is the stock markey tanking, but commodities aren't doing too hot either. Im used to seeing people pull their money out of speculative investments into safer commodities when things look bad. This is starting to look like investment in general is starting to dry up to some degree.

Just to put that gold rally in perspective


Silver:


Oil: