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Dow drops 778

Discussion in 'U.S. Politics' started by Libsmasher, Sep 29, 2008.

  1. Libsmasher

    Libsmasher New Member

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    An all-time record drop as the house votes down the "bailout" package 228-205. Pissant egomaniacs are arguing how to arrange the deck chairs on the Titanic as the ship goes. down. Also, I wonder if all the average joe imbeciles who've protested the attempt to add desperately needed liquidity to the credit markests, what the lib media calls a "bailout", are beginning to get a clue??
     
  2. Pandora

    Pandora Well-Known Member

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    They said if we didnt have a bail out by friday our whole economy would collaps, then they said if it doesnt happen by monday it would, now they are saying wed.

    I think they are lying and I think we should insist on NOT bailing out any of them. Let them borrow the money from china all by their self.
     
  3. Pidgey

    Pidgey Well-Known Member

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    Just found this from an economist:

    "Short-term-funding markets remain under significant stress despite news that a bailout compromise was reached over the weekend," MKM Partners Chief Economist Michael Darda wrote in a note. "We don't see how the plan will work unless Treasury begins to buy distressed assets for above market prices (which would help the banks raise capital). Buying assets at distressed values will only trigger more write-downs and thus won't ease banking strains. Either way, the best we can likely hope for is that the plan stops a further escalation down; it almost surely won't catalyze a quick snap-back in activity and we think it's a mistake for politicians to sell it that way."

    From here:

    http://articles.moneycentral.msn.co...rket-dispatches-092908.aspx?icid=money_080929
     
  4. Vyddo

    Vyddo New Member

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    The "average Joe imbeciles" as you put it, probably understand the situation far better than what many think. The only real difference, the "average Joe imbeciles" are used to having to deal with there mistakes, used to suffering from the greed of politicians and corporate america.. and yes, they understand the situation will affect them.. but there willing to confront it now and deal with the consequences instead of inserting a quick fix that doesn't fix anything at all, simply pushes the problem down the road a bit and makes it bigger.

    There are alternatives to the bailout and even if there weren't.. it's better to get it over with if it's going to happen, in the end, perhaps some ppl will make some wiser decisions. Otherwise, the alternative is a socialistic system, where the govt. acts as the diaper for the misgivings of bad business.
     
  5. foggedinn

    foggedinn New Member

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    Arranging deck chairs on the Titanic. Accurrate imagery.

    A republican administration proposal that didn't(wouldn't) pass without a clear majority of republicans voting for it. No one in either party likes the plan or knows for sure if it will make the situation better or worse.

    The democrats served notice early on that they were not going to be the ones holding the bag all by their lonesome if the proposal didn't accomplish the desired results.

    It will actually take an arithmetic majority of both parties voting for the proposal for it to pass. That most rare of things in recent Washington political history; by-partisonship on a contentious and controversial piece of major legislation.

    Maybe if we all hold our breath until we turn blue.
     
  6. BigRob

    BigRob Well-Known Member

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    Asian markets are taking a beating as we speak.
     
  7. Pandora

    Pandora Well-Known Member

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    The Russian market closed for 2 days that I know of. I assume they went back up but they were down for two days to try and stop the bleeding.


    this seems world wide
     
  8. BigRob

    BigRob Well-Known Member

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    Yea they are going to follow our market, right into the gutter.

    On an interesting side note, McDonalds found themselves unable to get a loan given the current credit squeeze.
     
  9. Pandora

    Pandora Well-Known Member

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    Do you think things will just get better or do you think there will be a world wide shake up and change the way we do $$ things?
     
  10. BigRob

    BigRob Well-Known Member

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    Well, I think that eventually the market will correct itself.

    The problem is not that the DOW dropped 778 points, that is not that huge of a deal. The problem is that the credit market is at a 4 year low. This is a huge problem because it has basically put us in a credit freeze. Corporations will struggle to raise capital from investors in this market, and the problem here is that short term capital they raise usually is used to cover day to day operations and to meet their payroll.

    The problem will not be if the market can correct itself, because it can, the problem is how long will it take, and how many jobs will it destroy in the process.

    That is my take anyway, I am sure there is some economist that agrees with me. =)
     
  11. Pandora

    Pandora Well-Known Member

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    If banks having money for credit is the problem then the most American and patriotic thing we can do is to pay off our credit cards. Does that seem right?

    I think a lot of Americans would like to know, what can I do to help.
     
  12. BigRob

    BigRob Well-Known Member

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    Well, I am not sure that would really have any impact. It does not really get the underlying problem of all of the bad debt that is still out there.
     
  13. Libsmasher

    Libsmasher New Member

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    An ALL TIME RECORD ONE DAY DROP is not a big deal?? Just what the hell WOULD be a big deal?? On false news from the congress about a deal, the DOW rose 300 points. When they failed, the DOW went down further than any day during the Great Depression! Not a big deal??!! :eek: I personally lost $12,000 in paper losses in one day with my very conservative portfolio! Are you folks not in the market?? Umpteen people depend on the market for retirement, and lots of people who are already retired, and institutions like union pension funds.

    Not a big deal. :(

    Try to get a loan now, and tell me how big a deal it is. Will it be a big deal when companies throw workers on the street, because they can't arrange credit?? What would you do if you were on the titanic half sunk - sit there and sing "don't worry - be happy"????????????? :rolleyes:
     
  14. BigRob

    BigRob Well-Known Member

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    Its a big deal, but relatively it is not. The market can recover 700 points by Wednesday.

    Well, again, its a short term big deal, but relatively 700 points is not a devastating loss.

    I'd would be happy if all I lost today was $12,000. I lost a lot more than that.

    I have sympathy for people who dumped all of their money into the market in a retirement fund, but really that should have been thought of before now. Why anyone thinks you can put money into the market and just expect it to grow with no risk is beyond me.

    Well, as I stated, the credit market is at a 4 year low, and that is a major problem. But the general drop of the DOW 700 points is not end of the world. I expect it to drop well below 10,000 before the end of the year. (Assuming no action).
     
  15. Libsmasher

    Libsmasher New Member

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    You lost more than $12,000 in ONE DAY?
     
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