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Biggest stock point loss in history-What does it mean?

musicismylife78musicismylife78 Posts: 6,116
edited September 2008 in A Moving Train
Dow lost 777 points. Biggest point loss ever. What does it mean?

I think this is the beginning of the crash. I always thought the crash would happen in some armageddon type thing. Some riot or protest that forced the government to topple.

But it seems its toppling in on itself, without the push by radicals or revolutionaries.

I think whats happening now is natural to any system like capitalism where people buy buy buy, and the 7 trillion dollar national debt continues to pile up without anyone talking about making a dent in it.

This was inevitable, the surprise and shocking thing is how it came about.
Post edited by Unknown User on

Comments

  • teskeincteskeinc Posts: 1,784
    I think you will see it tomorrow also , maybe all week. The Dow is at 10,400. the 777 today equalled 1.2 trillion in lost value or around 7-8% drop. This happened in the Asian markets , Canadian market and Brazilian markets , Australian markets and many others. If you need your 401Ks soon youre gonna take a bath, if you got 10 years to ride it out you are OK. If you know where to find "bargains" and have cash to invest, you could potentially retire early when the market recovers.
  • spongersponger Posts: 3,159
    The thing to keep in mind is that although 777 point drop amounts to the greatest one day point drop, it represents 7% of total funds, which doesn't even rank in the top 10 of percentage drops.

    Furthermore, such a contrast between points and percentages indicates heavy inflation. That is, the dollar is being stretched too thin. In which case, market retractions are a step in the right direction.
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  • know1know1 Posts: 6,794
    radiohead33 wrote:
    Dow lost 777 points. Biggest point loss ever. What does it mean?

    I think this is the beginning of the crash. I always thought the crash would happen in some armageddon type thing. Some riot or protest that forced the government to topple.

    But it seems its toppling in on itself, without the push by radicals or revolutionaries.

    I think whats happening now is natural to any system like capitalism where people buy buy buy, and the 7 trillion dollar national debt continues to pile up without anyone talking about making a dent in it.

    This was inevitable, the surprise and shocking thing is how it came about.

    It was the biggest in terms of points, but nowhere close to the biggest in terms of percentage.

    What it means to me is that the money I'm putting into my 401K, IRA and Roth will be buying funds at a cheaper price. That means I'm buying more of them. Since I have a long way to go to retirement, at worst it's not much of an issue and at best it's a good thing.
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  • LikeAnOpeningBandForTheSunLikeAnOpeningBandForTheSun Posts: 6,097
    hopefully it means one day our entire economy won't be based on debt.
  • DriftingByTheStormDriftingByTheStorm Posts: 8,684
    sponger wrote:
    Furthermore, such a contrast between points and percentages indicates heavy inflation. That is, the dollar is being stretched too thin. In which case, market retractions are a step in the right direction.

    I'm not sure i follow, can you please expound on that?

    The colossal rise of the DOW over the years (particularly since WWII) seems heavily corollary with inflation.

    A retraction in prices in the markets COULD therefore represent a DEFLATION of the currency, but we all know that is NOT true.

    Certainly the loss of "value" being experienced right now IS deflationary, but fundamentaly REAL inflation (actual new liquidity being provided by The Fed) is rampant (inflation probably running higher than 13% right now) ...

    so i'm not sure i see the loss of value in the markets as a good sign (is that what you are suggesting? a representation of a deflating currency?) ... i simply see it as a mix if massive fear (money on the sideline and not in the market) and unfortuantely of wealth destruction\value loss\deleveraging.

    But get back to me, because i'm not a harvard economist.
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  • FiveB247xFiveB247x Posts: 2,330
    Too much of our "growth" and economic (and the dollars) status is/was based on faulty investments. Bad debt, poor investment and unstable areas which were bound to crumble. House of cards basically.
    CONservative governMENt

    Our government is the potent, the omnipresent teacher. For good or for ill, it teaches the whole people by its example. Crime is contagious. If the government becomes a law-breaker, it breeds contempt for law; it invites every man to become a law unto himself; it invites anarchy. - Louis Brandeis
  • brain of cbrain of c Posts: 5,213
    looks like i picked the wrong week to stop sniffing glue.
    d'oh!!!!!!

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