Posted on 10/07/2008 10:14:18 PM PDT by Arkinsaw
Down 722 - 7% and falling so far.
Asian stock markets plunged Wednesday as recent steps by the world's major economies to fortify credit markets failed to stem escalating fears that the spreading financial crisis could spawn a global recession.
(Excerpt) Read more at finance.yahoo.com ...
Everytime I read about the global markets and such over the past few weeks, a certain statement comes to mind:
"So you think that money is the root of all evil?" said Francisco d'Anconia. "Have you ever asked what is the root of money? Money is a tool of exchange, which can't exist unless there are goods produced and men able to produce them. Money is the material shape of the principle that men who wish to deal with one another must deal by trade and give value for value. Money is not the tool of the moochers, who claim your product by tears, or of the looters, who take it from you by force. Money is made possible only by the men who produce. Is this what you consider evil?
"When you accept money in payment for your effort, you do so only on the conviction that you will exchange it for the product of the effort of others. It is not the moochers or the looters who give value to money. Not an ocean of tears not all the guns in the world can transform those pieces of paper in your wallet into the bread you will need to survive tomorrow. Those pieces of paper, which should have been gold, are a token of honor--your claim upon the energy of the men who produce. Your wallet is your statement of hope that somewhere in the world around you there are men who will not default on that moral principle which is the root of money, Is this what you consider evil? Atlas Shrugged.
But what has happened? We've given money to the ocean of tears an unheard of amount which will be pumped into the market system for which it holds no value at this point.
Upon the energy of the men who produce, we still know this to be true. America is the place where money can be made and we see the way forward in the form of energy development. Money, homes, credit cannot be given to those who are unproductive it devalues us all. The Rescue package will fail, it was bound to fail it cannot save a market(s) whose core does not meet the standard of production. Money was given to non-producers in the form of toxic paper bundled together with production.
When you see that trading is done, not by consent, but by compulsion--when you see that in order to produce, you need to obtain permission from men who produce nothing--when you see that money is flowing to those who deal, not in goods, but in favors--when you see that men get richer by graft and by pull than by work, and your laws don't protect you against them, but protect them against you--when you see corruption being rewarded and honesty becoming a self-sacrifice--you may know that your society is doomed.
What is the Paulson plan but a codification of getting "richer by graft and by pull than by work"??
Your charts support what big brokers tell me about all this bottoming out around 8500 on the Dow Jones.
However, markets under pressure traditionally overshoot, then correct and stabilize. 7500 is not unreasonable, and 5000 isn’t out of the question.
I’d rather see the pyramid come down now, while I’m still young and have a little bit of say over mine and my kids’ future, instead of patching it up for another few years and an even bigger crash.
I will buy that. Yen 85 to 90 to the Dollar, for weeks or months on end. Very possible.
I agree. However, I also posted several times on FR that I thought markets would go up like a rocket for a week or so after the bailout passed, so rest assured I've been sufficiently humbled to avoid making any predictions!!
Most have lost touch with the value of their money. Listen to the liberal yoke of fairness and wealth redistribution to those who cry that ocean of tears. It is time to reeducate the masses about their monetary value.
As long as we as a nation turn to government to solve this crisis through printing more money, which devalues all of us, we will continue down the road to a market crash.
What a wonderful time for the creation of the North American Union and our *new money*, the AMERO.
I don't think all of them do by a long shot.
Leftist redistribution and command/control are evils to be sure.
But let's not forget that the left is winning over the public today as a result of a decade of reckless financial manipulation and the creation of entities "too big to fail", some of which is still being supported by many Freepers.
Read this board (any topic) and you'll see why. It's the herd instinct. Stampede -- even though there's no reason to. React rather than think.
Read about the people who are seeing their retirement funds evaporate.
well my income and the college fund for my grandson is dead. the trust fund i hold for another is in the tank and the broker wont return my calls. lol.
mc cain is such a liberal i dont think it matters.
The rate cut is coordinated to produce results elsewhere first and some hours later, here
Asian Markets dumping?
On what? The Obama/McCain debate?
Besides, the “analysts” have been telling us for months, if not longer, how the Asian Markets would decouple from the US Market.
No?
Funny, huh ?
Now the Fed wants to do what banks can’t/won’t/shouldn’t. Of course we the taxpayers have the Fed’s back.
Moral hazard, anyone ?
God I hate those people.
When even Conan OBrien gets it, you have to wonder how stupid or how venal Paulson and Co are to proceed.
Why are people freaking out when there is no reason to freak out ?
They think America is poised to elect a marxist to the Presidency.
The unwinding of derviative cannot happen all at once.....it will take time.
But anyone with an MBA, heck, a BA, should have seen this coming a mile away.
Anyone CEO who put all of their company’s eggs in the derivatives basket should be at the very least, stripped of all assets to help pay for this mess. But I would argue they should be hung.
The problem is that the banks are over-leveraged and under-capitalized: and the money market funds are so unsure of what toxic mess is out there that they will NOT buy anything with the slightest degree of risk lest they "break the dollar" (technical term referring to return of principal, not exchange rates of currencies).
So nobody is buying commercial paper, which means businesses who rely on short-term borrowing to handle day-to-day cash-flow management get no funding.
No funding, no growth, and soon, no paychecks.
Paulson's plan will leave these businesses afloat, but also will get the other commercial entities used to the idea that "the government will buy the short-term paper" leaving the businesses dependent on the government.
Beautiful move for a socialist /communist to take advantage of because to most laypeople IT DOESN'T EXIST, they don't know what it is.
So anytime a Dem or Communist (but I repeat myself) wants to cause a MAJOR financial/economic disruption to screw a republican, they can just *announce* (not even have to follow through) that they will cut back on the Treasury's (or whoever Paulson is doing it through) purchase of the short-term corporate debt, and cut 10-15% off the stock market overnight.
Many of the top Dems and executives of Fannie/Freddie should be in Leavenworth as we speak.
Cheers!
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