Today's stock market drop
JOEJOEJOE
Posts: 10,626
Wow, no one is saying much, not even the "overly-insightful thinkers" (aka conspiracy theorists!).
Lets hope some bargain hunters come-out tomorrow and raise the market.
I wonder if people are going to feel safer having their dough tied-up in stocks, as opposed to bank accounts!
Is anyone nervous about their banks?
Lets hope some bargain hunters come-out tomorrow and raise the market.
I wonder if people are going to feel safer having their dough tied-up in stocks, as opposed to bank accounts!
Is anyone nervous about their banks?
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Not worried about bank accounts, luckily we have the FDIC, so youre first hundred thousand is guaranteed by the government.
Market should rebound considering how morbid today was. If the fed decides to cut rates which they should, hopefully some ground will be gained back.
Would like to see some more clarity though. Goldman and i think Morgan Stanley report earnings tomorrow so the hammer could drop once again if the news is bad enough
yeah i am but DBTS has giving some good info on hi's thread ...
I would expect a modest\slight down day.
I don't think the market got all its rocks off in todays slide, despite how ugly it was.
I say maybe a slight dip in to positive territory, maybe around the build up to FOMC (noon to 2ish EST) and then a quick slide in to close.
But i'm not a clairvoyant, just what i see as most probable.
and as far as not saying much,
i guess at this point i sort of feel resigned, like i have said my piece time and time again. The market simply is what it is now, regardless of what i've been screaming. :(
The time to get out of the markets was months ago, not now.
Although, unfortunately i can still foresee the DOW hitting 7 to 8,000 as more of these banks crash. The fed has VERY few bullets left. Maybe another half point in its back pocket, and FEW hundred billion left to throw out in liquidity. A few more failures near in scope to Lehman, and we will simply be in one hell of a depressed market for quite some time.
I am also very anxious to see what next weeks new & existing home sales numbers have to say. That will be crucial, and the durable goods and initial unemployment claims will also be telling.
So i will sit relatively quiet through today's mess and tomorrows reaction, and wait to see what next week brings.
AIG also remains in imminent danger, i mean like 48 hour type danger.
Once that horrible event goes through the system (like lehman did today) we can better assess just how and where we stand.
If I opened it now would you not understand?
A lot of talk right now about whether that $100,000 FDIC insurance will hold up if this thing gets really nasty.
It won't.
It will need to be "replenished" by some sort of government action.
But like i said in another thread, for the government to give up on the FDIC outright, would be like the government saying it didn't have the money to pay out on Social Security. The government would be admitting its own insolvency, and that is (true or not, and it is mostly true as we speak) something the US Government has ZERO plans to do anytime soon if it can help it.
By hook or by crook, i imagine FDIC will be there for the peons.
PS - If you want to talk about government troubles, i would be more concerned about the mumblings we heard some months ago about the IMF\World Bank seeking to put the entire US financial system under FSAP (Financial Sector Assessment Program).
The result of this process could be something radical and totally unprecedented.
It could ultimately be the action that intitates the total loss of US Sovereignty.
I just wish there was more (current) information to be had regarding the progress of the investigation.
If I opened it now would you not understand?
...are those who've helped us.
Right 'round the corner could be bigger than ourselves.
Chart's Series Name: Total Borrowings of Depository Institutions from the Federal Reserve: Billions of Dollars: NSA
You can go below the chart and change the time frame to put the start back to 1919 (instead of 1990) and it looks exactly the same.
Think the banks are relatively fucked?
:(
If I opened it now would you not understand?
Apparently as of Fed Meeting today (currently in session), government "intervention"\"solution"\"bailout" of AIG is "back on the table".
:sigh:
I thought Lehman's failure would have been a "positive" precedent that screamed out "let the institutions fail", "let the market self-correct".
I guess AIG is another one of those "too big to fail" institutions?
:(
If I opened it now would you not understand?
A country that had intelligent leaders would recognize its dire straits, stop its gratuitous wars, and slash its massive military budget, which exceeds that of the rest of the world combined. But a country whose foreign policy goal is world hegemony will continue on the path to destruction until the rest of the world ceases to finance its existence.
Most Americans, including the presidential candidates and the media, are unaware that the US government today, now at this minute, is unable to finance its day-to-day operations and must rely on foreigners to purchase its bonds. The government pays the interest to foreigners by selling more bonds, and when the bonds come due, the government redeems the bonds by selling new bonds. The day the foreigners do not buy is the day the American people and their government are brought to reality.
The Fed HOLDS RATE UNCHANGED.
2.0% UNCHANGED.
UNANIMOUS DECISION.
Market drops 100 points in seconds.
Fed remarks mention inflation risks repeatedly, will remain on watch to economic risks, but inflation is "significant risk".
"Strains in financial market have increased significantly."
"Labor markets have weakened in recent months."
"Economic growth appears to have slowed recently."
"Inflation outlook does remain highly uncertain."
Markets not happy about no rate cut.
Bob Pisani at CNBC reporting ACTIVE, LOUD BOOING ON NYSE EXCHANGE FLOOR.
He said "unprecedented loud booing in the pit."
I actually AM happy.
This appears to be a "Dollar Before Markets" case, where the Fed, although unwilling to express the grave nature of its concerns, is actually freaked out about inflation, and simply feels it can not cut rates with out serious negative implications for the dollar. Treasuries and the dollar are very happy about this, despite the boos coming from Wall Street.
If I opened it now would you not understand?