Thursday, October 09, 2008

The Stock Market Goes Into Free Fall

Welcome to the 2008 Depression

Wow! Remember a few days ago when Ex Goldman-Sachs former CEO and current Treasury Secretary Hank Pailson bullied our US Congress into "stabilizing the markets" with a $700 billion bailout fix? We already witnessed what happened to the stock market the very minute this little piece of socialist government intervention was interpreted by our so-called "free market economy". The chart below shows exactly to the very minute what happened when Congress passed the bailout bill:


Well... Look what's happened to the stock market since:


So much for government interventionist solutions.

Today was especially bad, of course, with a 679 point drop on the Dow, mainly in the last two hours of trading.

Is there anybody on the planet who actually believes "investor confidence" will be restored in America, so long as the same morons who brought about the "mortgage mess" about are STILL twiddling the dials and pulling the levers of U.S. economic policy?

This week's stock market crash is unprecedented, percentage wise... even compared to 1929:

The latest news we're hearing is that some government "leaders" are suggesting that the U.S. government should prop up the economy, by buying futures contracts.

Check your Mormon food supplies. You may need to use them very soon.

8 comments:

danny said...

Rudi,

The US government will buy futures contracts? Why then don't they just buy the whole country?

Better Idea: The incompetent Bush administration needs to STOP impressing their ideas on US policy!

I mentioned in the thread about IGA that people might want to think about selling SKF (it goes up when the market goes down and so has been going up), since it has gone up so much.

But since I said that the Dow Jones futures contract has fallen another 200 points! Maybe SKF should be kept a little longer.

What do I know? Holy Moses.

danny said...

. . . I remember a year ago I talked in terms of the great depression of 2008, and the market went up still higher . . .

Now that it is really happening, it is so sad. I think of all the innocent people who will suffer.

Folks, remember, this wasn't your fault. Help each other and remember, this too will pass in time.

RudiZink said...

Dang, Danny...

SKF?

Why didn't you tip us on this sooner?

We thought you were our pal!

We coulda made a bundle (wink).

DANG!

Curmudgeon said...

Signs of the times:

1. From today's long NYTimes piece on the crumbling reputation of Alan Greenspan and his role in engineering the current meltdown:

In recent months, as the financial crisis has gathered momentum, Mr. Greenspan’s public appearances have become less frequent.

No kidding. I don't think Phil Gramm is doing a lot of public speaking these days either. And I haven't heard the Republicans touting themselves as "the party of business" anytime recently. Imagine that....

2. From the Washington Post:

Debt Clock Out of Numbers

The national debt clock, which hangs on a wall in Times Square (right next to an IRS office, by the way), has been recording the national debt since 1989 and was the brainchild of late, puckish Manhattan developer Seymour Durst.

Now, the debt is so high, the clock has run out of numbers.

The clock has room for 13 digits, to record a national debt of up to $9,999,999,999,999. But when President Bush signed the $700 billion Wall Street rescue/bailout plan, it upped the national debt to more than $10 trillion, meaning a 14th digit was required on the clock.

told you so said...

President Bush is scheduled to speak to the nation Friday mid-morning.

This insures the market will fall after he speaks. The whole bunch should just shut up and fix the problem.

And now Nancy Pelosi wants to give out another round of checks to recharge the economy.

Neither party has a monopoly on stupidity when it comes to fixing the problem.

chop shop said...

checked my morman food supply cant find the beer im in trouble !!!!!

danny said...

I should mention that I unloaded SKF today. When it hit 200 I went to sell and by the time I did it was at 180.

The market hit a number of resistance levels today and bounced off.

The government may try some more and new types of rigging. The market could go up from here for awhile.

Perhaps it's good to be out of inverse funds and it's a nice break to be out of the market generally for awhile.

danny said...

Sheesh.

Perfect timing.

Just saw this.

After this week, I figured it was almost a sure bet the government would do:

1. The stupidest thing
2. The most wasteful thing
3. The thing most guaranteed to make things worse in the long run.
4. The thing most likely to jig up the market until after the election.

And that people would be stupid enough to buy into it.

And here it is.

So, here we go. Market goes up on Monday.

You can buy SKF again in the future for a lot less.

(That's one problem giving stock advice, by the time you give it, it's too late. Things move too fast.)

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