what the hell is going on with our stock market

[luigisacs]

It also has to do with trust and something economist call a "Flight to quality" everybody and their mother is taking money out of stocks because they are afraid of failure and ultimately losing everything. So when they sell they take their money and put them into T-bills or other US treasuries becasue treasuries are safe. Its a shift to safer securities, which right now is only treasuries. This bailout wasn't intended to be an immediate fix. It took about 2 years for this to come to a head, its going to take 3x that to get out of it. But, after a year or two, when things have had time to settle and the bailout money is used properly, things will slowly begin to turn around.

Then . . .regulations must be put into place. Congress (not the president, he doesn't make laws) will have to put major regulation in to stop big business from doing what they did to screw everything up. Because the congressmen and senators who try to get allected in 2 years will bash corporations like its the end of the world. Mark my words on that one.

 

[dsgray16]

Hello bottom!

 

[dsgray16]

I hope...


what a roller coaster ride today

 

[joseney21]

"The inability for the federal government to act promptly knowing exactly what and how to do it drags everything down with them affecting everything and everybody"

do they really know what to do?? seems like nobody in the govt (except for a very select few) really has a clue as to how these problems came about and whats the best way to intervene...

seems to me like there was an overall bubble in wall street (judging by the tremendous rise in DJIA and the SP 500 since 95').most of the talk i've heard about the stock market, in my short adult life, seems like bubble talk. "you HAVE to invest in the stock market for retirement" or " you'll make a ton of money in the stock market" , "stocks always go up in the long run". this is all only true if more new money continues to come into the stock market, otherwise gains would be quite modest if not flat and stocks wouldn't be as popular as they are today. i've learned if it sounds to good to be true....

also, someone please correct me if i'm wrong but it seems like the biggest factor driving the price of a share up or down is demand, not innovation, productivity, profit or growth. reminds me a lot of the beanie babies. if this wasn't the case why would stocks fall so drastically in a short amount of time?

I've always personally thought the stock market was overrated and after this i expect many people will look to do other things with their money to keep it safe for the long run. any ideas??

 

[LeslieS]

increasing the FDIC to 250,000 surely gave people greater confidence in the banking system.

Yes, but this is false confidence. The more we FDIC insure deposits for the less accountability the banks have for keeping that money safe.

Has anyone read Tulipomania? It is a non fiction book about a craze for Tulips that made and lost fortunes. A tulip bubble. Pretty interesting.

 

[Pedro Nuno Ferreira]

Yes, but this is false confidence. The more we FDIC insure deposits for the less accountability the banks have for keeping that money safe.

Has anyone read Tulipomania? It is a non fiction book about a craze for Tulips that made and lost fortunes. A tulip bubble. Pretty interesting.

Hi LesliS ;-)
No I haven't, but found information about it here
Yes LeslieS it can be very much as you say and in addition to that I would no be surprised if this whole financial crisis is..."being prepared, orchestrated", which in brief means that the big financial powers know that the oil business is about to end as new technologies for energy and motion/communication/commuting are further and further being put forward, the climate change although part of the natural dynamics of this living planet in which we live, have a look here and here, is being sped up by the green house effect... (and I have a lot more to show about this and one day I'll be putting it in a thread dedicated to it so that people my know what "a" hell is going on with earth...etc...but for this thread its enough)...so this put together could be giving something like: the oil business financial powers want to stay in business but they have to change for another business, so since they have lots of money, they use it to cause financial imbalance and lead their aimed businesses to loose value, so that they are put to sell and for a low cost, so these Tycoons move in and buy everything and keep in business...
This may look Machiavellian but these people are very much attached to power and they do not hesitate to do anything to remain so, whatever nationality they have...its business as usual no matter what as long as they keep control.

Cheers ;-)
Pedro Nuno

 

[Aqua Pro Builder]

(4)The banks are foreclosing them and the government has no plan on helping those individual "poorly performed mortgage owners." That's what I have been critizing about the government bail out plan and the general media of magnifying the propaganda of the financial institute in putting the blame COMPLETELY on the mortgage owners. They do have responsibilities in this crisis but I think the financial big sharks carry more guilt. The financial tycoons are well educated, and licensed(licensed means they are supposed to know "what the hell is going on" in conducting their business), to know of the risks and they have been ripping the profits when the market is good. So, they continue the gamble. Both the "poorly performed mortgage owners" and the mortgage providers are running their business above their means and gambling. Why only help the rich and big institutes? The bail out plan could have been writen so that the mortage owners can get an emergency loan from the FED to pay the mortgage providers. However, this plan may take time to stablize the market so bailing out the big guys may be the quickest fix. But why not add some accountability build into the bill to make sure the financial tycoons are not running their business above their means, is what I have been questioning all along. Like France's chancellor, I have been yelling about "make the responsible be responsible." Finally, it's not that the private sector totally out of faith in the system but instead they are just waiting for the best chance to make even more money out of this mess. I don't blame them, they got no duty of that. They share no visions of saving the economy for the benefit of the public. Look at the recently preferred stocks sold by Goldman Sachs-private investor get preferred stocks while our government is not requiring the same in the bail out plans to buy ONLY preferred stocks of the failing companies. Why?

I have yet to hear any big shark being stripped of their license in misrepresenting their products, especially the structure ones which I am very against-I felt those products are gimmicks years back.

I bet, there are more tricks to save the economy and I will let the financial genius or tycoon chime in. LOL

To further illustrate my idea of point (4), please check out this latest report indicating that the failing financial giants FULLY(for 3 years) understand the risks of this bloom and continue to rip the profit out of a crisis they created by postponing and obstructing the regulations deemed necessary by some senators.