The market is crashing, why hasn't the government stopped this? - cougarguard.com — unofficial BYU Cougars / LDS sports, football, basketball forum and message board

UtahDan · 10-09-2008, 08:45 PM

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.

Tex · 10-09-2008, 08:46 PM

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.

BlueHair · 10-09-2008, 08:51 PM

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.

MikeWaters · 10-09-2008, 08:53 PM

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.

Tex · 10-09-2008, 08:59 PM

Quote:

Originally Posted by MikeWaters

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.

The failure of a few multi-billion dollar firms might have played a tiny role too.

BlueHair · 10-09-2008, 09:00 PM

Quote:

Originally Posted by MikeWaters

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.

He is a smart bastard. There was a huge transfer of power to the government. He has done more for government power than any ruler since Hitler. Domestic spying, central police force, market control. He also got Congress on board. The man is a genius.

The next few months will be fun with conspiracy theorists. I predict the "Amero" crowd will be out in full force.

Cali Coug · 10-09-2008, 09:40 PM

I think today was the 2nd largest percentage drop in history (although nowhere near first place).

Tex · 10-09-2008, 10:11 PM

Quote:

Originally Posted by Cali Coug

I think today was the 2nd largest percentage drop in history (although nowhere near first place).

Mmmm, not sure that's accurate. If memory serves, 1929 and 1987 both were roughly 20% in one day.

pelagius · 10-09-2008, 10:25 PM

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:

Code:

19291028 -11.170
19291029 -11.858
19291106  -9.605
19321005  -7.210
19330720  -8.457
19330721  -9.423
19371018  -8.078
19400514  -7.172
19871019 -17.135
19871026  -8.259

TripletDaddy · 10-09-2008, 10:28 PM

Quote:

Originally Posted by pelagius

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:

Code:

19291028 -11.170
19291029 -11.858
19291106  -9.605
19321005  -7.210
19330720  -8.457
19330721  -9.423
19340726  -7.079
19371018  -8.078
19400514  -7.172
19871019 -17.135
19871026  -8.259

That was a bad week, back in 29.

10-09-2008, 08:45 PM	#1
UtahDan Senior Member Join Date: Aug 2005 Location: The Bluth Home Posts: 3,877	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. __________________ The Bible tells us how to go to heaven, not how the heavens go. -Galileo

10-09-2008, 08:46 PM	#2
Tex Senior Member Join Date: Dec 2006 Posts: 8,596	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. __________________ "Have we been commanded not to call a prophet an insular racist? Link?" "And yes, [2010] is a very good year to be a Democrat. Perhaps the best year in decades ..." - Cali Coug "Oh dear, granny, what a long tail our puss has got." - Brigham Young

10-09-2008, 10:25 PM	#9
pelagius Senior Member Join Date: Nov 2006 Posts: 1,431	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: Code: 19291028 -11.170 19291029 -11.858 19291106 -9.605 19321005 -7.210 19330720 -8.457 19330721 -9.423 19371018 -8.078 19400514 -7.172 19871019 -17.135 19871026 -8.259 Last edited by pelagius; 10-09-2008 at 10:44 PM.

10-09-2008, 08:51 PM	#3
BlueHair Senior Member Join Date: Nov 2006 Location: Utah Posts: 1,148	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.

10-09-2008, 08:53 PM	#4
MikeWaters Demiurge Join Date: Aug 2005 Posts: 36,365	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.

10-09-2008, 09:40 PM	#7
Cali Coug Senior Member Join Date: Dec 2005 Posts: 5,996	I think today was the 2nd largest percentage drop in history (although nowhere near first place).