Skip to comments.Panic: S&P down over 6%, Dow down over 5%
Posted on 10/06/2008 7:45:09 AM PDT by Thane_Banquo
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Good information and thanks. Do you have any thoughts on who would be among the first to issue stock buy-backs?
We should have no restrictions whatsoever.
Just back up a pick-up truck to your nearest Federal Reserve Bank branch and we'll fill it with a back-hoe shovel full of twenty dollar bills...no questions asked!
Call it the "Santa-arrives-early-this-year" stimulus package.
Everyone needs a bail-out! Why even bother with the details?
McCain voted for the bailout. He's neck deep in this cr@p now.
What do you bet the down rises sharply in the Spring of 2009.
Who has any money left to bet?
Still getting offers in the mail, too. Every account statement I get has these “USE THEM NOW” checks to write against my account. My credit cards still work. I guess I’m just an ordinary Main Street schmuck who doesn’t understand all this crap.
“pin the blame squarely on the Democrats”
This should be only part of the reform he has promised us, haven’t seen any of it during this financial crisis. He has also promised us prosperity, I would like for him to convince me that he knows how the fudge to do that. He has also promised us peace, I had much rather be promised security against our enemies (foreign and domestic) and know that he realizes that peace is gained through strength. By the way, a strong military has to be financed by a strong economy. I don’t need a reason to vote against Democrats, I need a reason to vote for Republicans.
Unfortunately all the stock buybacks have been done already. Microsoft just announced a new one last week and it did nothing. Credit meltdown or hyperinflation, take your pick (Mises was right!)
And Down we go.
See you at 7700
Yes but weren’t they always dangerous? I think this credit and housing bubble has been a travesty not only against the very core of what it means to be an American but against common decency. Between the greed in Washington and Wallstreet we have a perfect storm. Not the failure of capitalism but the failure of Socialism.
We need a drop of 1000 points to equal Europe’s pain. Can we do it? Will we do it?
-- President Ronald ReaganRight then, and right now.
Hedge funds, “funds of funds,” investment banks, commodity funds, etc — they have bought positions in stocks, bonds, debt securities, commodities, etc with borrowed money.
When you buy positions with borrowed money, if your position goes down, you can get a “margin call” — you either have to put up more money to cover the position, or you have to sell off out of the position to re-establish your margin limits.
With the markets going down as hard as they are, hedge funds all over the world are having to sell assets to get out from under margin loan calls from banks. The banks want their money back and they want it back *now*.
When this is over, banks aren’t going to be lending money for margin again soon. The valuations (eg, price:earnings on stocks) of assets won’t be going back up in a hurry. In housing, for example, banks won’t write 100% mortgages any more - they’ll require 10% to 20% down payments. This will cause more people to quit paying too much for a house, and house prices will come down.
“De-leveraging” is going to reduce the valuations of all sorts of things - aka “deflate” the values.
Will they work in Costa Rica? If Obama gets elected I may just max them out while living in Costa Rica for the next 4 years.
Nah, its cool. McCain, Obama, Lieberman, Pelosi, Reid, Dodd, etc. all came to our rescue. Im sure the fruits of their heroic 8 a.m. labor are going to be along any minute now.....Nah, didn't you hear Pelosi? The bailout they passed was only the best they could do given what the Administration gave them to work with. If only Obamessiah was President, they would have been able to craft a much better bill - one that would have prevented this meltdown </sarcasm>
Do you think inflation-linked bonds would be a good investment over the next 4~5 years vs stocks? Or should I just go shopping for a big old mattress to hold all my money. ;-)
I speculated here on FR last week that if a big country in the EU (like Germany or France) pulled Ireland’s stunt, that it could spell the end of the Euro.
I had not thought it would happen this quickly. I honestly thought that it would take at least another week.
Well thank goodness the former CEO of Goldman Sachs, Mr Paulson gave us the $700 billion bailout and that congress added on $112 of pork! That solved the problem. /s
The markets could have done this without the taxpayers being stuck with the added debt!
Manufactured crisis to promote an agenda predicted by Yuri Brezmenov that has gotten out of control for the Marxists. And because we are the greatest nation on earth and have such impact, it has affected the world in general. Thanks Democrats!
WHY the hell are blaming McCain or Bush.
Congress is controlled by the Democrats and Obama !
The bailout was there package but they intended to craog it for weeks to get Obama elected !
Why are you spreading these LIES ???
What is your agenda ?
To get Obama elected ?
That puts things into perspective and thanks.
Major kudos for correct usage!
Maybe the dems at Fannie and Freddie made McCain's "luck"...
> This is an orchestrated collapse.
George Soros was able to crash the Russian economy in 1999, and the French economy in 2002. There is a warrant outstanding for him in Russia, and he was sentenced to a large fine in France.
It was only a matter of time before he set his sights on the US economy.
His timing, however, is politically motivated.
Bush was all for increasing home ownership for the marginal. Too bad it took him a year or two to figure out what it meant when Freddy and Fanny went insane and bought every mortgage in sight.
Why didn’t McCain stand up to the porksters?
I don’t want to think about an Obama presidency, but the facts are stubborn and persistent.
Agreed. I think McCain’s vote will cost him (and us) the election.
It may take a 'deus ex machina' event to change the political paradigm.
No one pushed harder and more publicly for this bill than your Republican President.
“Democrats control the house. They could have passed Paulsons first egg he laid.”
That is something that needs to be driven home! Twelve Democrat members of Barney Franks own committee could have passed the bill. This is a game wih Americans lives and games get out of control!!
I get those e-mails too about retiring to Costa Rica. I don’t know, what are their laws regarding ownership of property by foreign nationals? I’ve heard Mexico prohibits it.
Just wait till Obama takes over.
Me too, but then I remembered how much all those countries hate each other.
It was a Paulson / Dem set up.
Bush sadly fell for it and let Paulson go out and scream the sky is falling .The Wachovia fire sale to the Clinton operative and JP Morgan attack on Lehman Bros were all
a nice set up.
Bush put the Rep in Congress in a corner .
ping for Chuck Baldwin! The only conservative left in this race...
You're absolutely right about that. Didn't he destroy the British Bank a few years back (after declaring he could!)? I wouldn't be at all surprised to find out his nefarious hands are pulling the strings on this!
Sure would be interesting to find out HIS LINKS to this mess!
lol...yeah, you’d think that even empty-headed libs could do a little self-check on reality and see “if $850 billion can’t make a dent in it, maybe we should look a little deeper for a solution.”
You’d think...and you’d be wrong!
I disagree. Nearly 80% of the incoming calls and emails from the constituents of both parties were against the bailout, a signal that the general public has lost its last shred of trust in both the US government and Wall Street.
The decision to pass the bailout has caused a stampede among Joe and Mary Shareholder, for everyone with even a limited education in economics understands it will; A) drive inflation (which affects every consumer); B) lower the value of the dollar (which affects every consumer); and C) reward the bad guys, and shows that no matter how badly you run your company, the government will bail you out (which angers every consumer).
Confidence in the market and the government is down, as it should be. Both parties have tried to paint themselves as The Guys Who Will Fix All Your Problems... and the unintended consequence of that platform is that when you fail, you fail across the board.
Face it folks, this $700B was just to get us through the next election cycle in November. These ass clowns have one thing on their small minds- keeping their elite status, albeit as the governing body of a soon-to-be third world country.
Here too.. Just got 10 checks from Discover card saying “Here we have raised your cash limit. Please use these checks...”
It definitely signaled his decline in the opinion polls.
And Obama does??! That's not your implication, is it?
I doubt if the man could balance a checkbook. An economist he ain't.
Stealing from Main Street, giving to Wall Street.
What, removing capital from, and moving risk to the blameless didn't work?
Who ya gonna steal from next, Paulson?
I think this may be the year that the world learns the dangers of deficit spending and run-away credit.
McCain and especially Bush wanted this. If Bush didn’t want it, he has the veto pen (well, we think he does anyway). He should have vetoed it and allowed them to attempt an override. Yes, Congress (both houses) is controlled by the Dems, but McCain went in hook, line and sinker as did Barak Hussein Obama.
S&P 500 has broken support at 1080 level and going down. Next stop is 960 level. I would like to see it stop there but good chance it goes to 770 level where it bottomed in 2002.
It’s so ironic.
Is this the actual headline?
McCain clearly is out of his depth on this issue and just hasnt a clue how to respond.
And Obama does??! That’s not your implication, is it?
I doubt if the man could balance a checkbook. An economist he ain’t.
McCain, right or wrong, has the burden of demonstrating that Obama will be worse for the economy than he would be.