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The market is crashing, why hasn't the government stopped this?
I was under the impression that the government could control the economy and fix whatever is wrong with it by pressing the right buttons. I was assured that the 700 billion dollar button that just got pushed would do the trick.
I'm starting to think that our government can't actually manipulate everything. First we can't seem to get Islamic extremists to do what we want and now the market doesn't respond when we snap our mighty fingers. Perplexing. |
I was just thinking this afternoon how ironic it is that the great market crash did not come while waiting for the bailout vote, even with the House voting down the first proposal.
Then the bill passes, and the market crashes. Amusing. |
This is all panic driven. Panic caused by the government tooting the "credit crisis" horn. I hadn't heard anything about a credit problem until the government stepped in. I'm not saying there wasn't a problem, but it seems their solution has caused a meltdown that may or may not have happened without their intervention.
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President Bush ramped up the fear when he argued for the bailout. Many have been critical of him for it. It becomes a self-fulfilling prophecy.
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The next few months will be fun with conspiracy theorists. I predict the "Amero" crowd will be out in full force. |
I think today was the 2nd largest percentage drop in history (although nowhere near first place).
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I don't now what the DJIA looks like, but here are the 10 worst days in terms of rate of return for the entire market (all U.S. equities as a value-weight portfolio) from 1926-2007:
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19291028 -11.170 |
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1896-2007 Code:
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I'm leaving this up to the experts, in terms of when to buy and sell.
But for what it's worth, my own gut feeling is it's going to fall a lot more. The problem is that all the prior means and methods of valuing these derivative contracts and securities are exposed as junk. These assets comprise a huge part of our companies' assets; hence, we don't know what anything is worth. The problem isn't that they're worthless. Somewhere somehow the underlying real estate is worth something to someone. The problem is nobody knows WHAT anything is worth. Everything was built on assumed valuations in which no one any longer believes. It's like a worlwide loss of faith. A worldwide apostasy from our erstwhile pagan gods. We need something new to believe, new shiboleths, because scrolls have been found in a dusty corner of a museum that expose all our savings accounts as a huge collective fraud. This raises all kinds oof metaphysical questions amounting to, what is value? Questions that should have been asked all the while bankers were being paid eight figures. For what? Maybe Lenin was right. The only real value is created by laborers. |
Did I mention that my superhero husband pulled out of the market back when it peaked last spring? Is there anything this man can't do? I think I'll start a blog about him.
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I have lots of asian friends so I am clearly not racist. |
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I keep hearing people say, "Worst economic times since the Great Depression," including all the time from Obama.
This tagline really confuses me. Have we lost all sense of proportion? Have you seen photos, histories, stories about what times were like during the Great Depression? Does anyone remember the 1970s? Hello?? Of course current conditions are serious, and of course, it could potentially get a lot worse. But economic times are FAR off what the Great Depression was like. I've said elsewhere citing the GD is the equivalent of bring up Adolf Hitler in a debate. It's weak. It's a copout. Unemployment is at 6% for crying out loud. Six percent. That's a far cry from 25%. I get tired of this constant whiny, panicky pessimism that wants to turn every economic downturn into the "Worst Ever" (cue scary music). Bush is not the worst president in the history of the country. These are not the worst economic times since the Great Depression. Go pick up a history book and gain some perspective, folks. |
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I realize that doesn't pack the political punch of, "THESE ARE THE WORST" but it's just plainly not true. |
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