Posted on 01/21/2008 5:40:44 AM PST by Dukes Travels
If “The Economy” were a movie, the movie critics would conclude that “we have seen this movie before”. With exaggerated fears of an immediate recession being proclaimed by the media, the players are the same, the movie plots are the same, the lines are the same, the chase scene near the end will be the same, and unfortunately, the end of the movie will be the same.
Here are just some of the promotional headlines appearing on media marquees last week to entice you to pay the $7.50 to go to the movie or order it on pay-per-view.
“DOW takes a 300-point dive” “New housing starts down 25 percent for 2007” “Inflation rate is worst in 17 years” “Only 18,000 new jobs created in December 2007” “Job picture gloomy, recession feared.” And . . . “Media nearly unanimous: Recession inevitable.”
(Excerpt) Read more at northstarwriters.com ...
http://www.marketwatch.com/
Expect the DOW to drop 350 points when the market opens Tuesday.
Could this crisis be another manufactured crisis that “allows” government to come to our rescue once again?
After all, government is so efficient at abating crisis after crisis. All it takes is some more money to buy off the critics of failure.
If Ben does not drop interest rates before open on Tuesday, he needs to be taking out and shot (not literally). I can't believe that Ben has sat on his hands this long. Our economy is not healthy enough to survive both a housing collapse and a stock market collapse at the same time.
“Could this crisis be another manufactured crisis that “allows” government to come to our rescue once again?”
No, not really. But this could be “another manufactured crisis” to justify the government sending out cash during an election year. Vote buying?
I like recessions, my salary doesn’t go down, but prices do. Sweeett. :-)
Well, the market is full of realist, the more they hear about Hillary’s “economic plan”, and more they see as her winning the white house, the more likely it is seen that our economy falls apart.
But it will be for “the common good” of course.....
Definitely vote buying.
Extortion with our own money!
He already said they're going to drop 1/2 pt. at next Fed meeting (Jan 29 or 30).
DOW futures all already down 360 now. Asian markets are in a tailspin today, off 6% on average. Not pretty.
He has? All I have heard is vague talk about the fed is ready to act. Besides 1/2 point cut at the meeting is too little too late. Ben needs to cut 1/2 point now, and another 1/2 point at the meeting.
9.5 trillion in federal government debt.
That number was 3.5 4-5 years ago.
3 trillion in sub-prime doo-do.
What do you honestly think has and is going to happen?
A week's not going to make that much difference.
Hey, hey, hey....don’t knock Hillary’s intentions. She knows that in order to help you, it’ll be necessary to take things away from you. Why? Well, it’s for the children, or for the environment, or...well, just because it’s GOOD to take things away from rich people. /s
Considering EVERY day this year has been a huge drop (except one flat day) and foreign markets are down another 3-5% overnight, swift action could save TRILLIONS of dollars in stock value. The markets have already lost about 10% this year, more than wiping out last years gains. Another week, will be another 5-10% decline, minimum. The Fed needs to act NOW.
Instead, at least these two things will happen: banks and investment houses will use their debt derivatives as collateral and get lower rates, which will ease the liquidation pressures. Second, speculation and malinvestment will continue and ultimately accelerate as the lower and lower rates will allow greater and greater carry trade opportunities. In general that will do nothing for sustained economic growth.
Day to day fluctuations in stock price are of little effect in the longer term though they can make your hair fall out if you watch your stock ticker every minute.
OPEC profit dollars do not want to see deflation now, neither.
OPEC will probably raise output 1-1.5% (maybe max output levels?) to avert the severity of the upcoming global economic recession. This all parallels with the election cycle except for the sub-prime mess and there's speculation that US debt holding countries will dump another .5 trillion to ease out their own economies and domestic frustrations of their populaces.
Cheaper oil is a sure help in the near future without a doubt.
The large hedge fund managers that have the means to alleviate the pain are being contacted now too all in a coordinated effort. However, re-regulation is needed on the US part to avert another such exposure to the sub-prime circus shell game.
As money changing hands defines an economy, basically, so does debt exchanging hands to some degree.
I seriously doubt though however any one group will be left holding the bag with all the debt. We all (globally) will have to cough up some as the debt cycles through enough hands in the near future so it at least looks like it has disappeared. After all, this is what big business (banking, exchanges, government) does.
Unfortunately, America and the world has to standby as the actual rulers have to choose our President and how they get her into office at the Davos meetings this week...
Carbon credits = market losses.
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