Dow: 6726

[Geoff_M]

Public opinion is making them go slow on it. After the stress tests we'll see if they go against public opinion.

Then that's public opinion driving things... not the GOP.

Are you saying the governement should do what the market wants no matter what the cost to the taxpayers?

No... but if the Dow's freefall contines, it will do so at the peril of the Obama Administration and the Congressional Democrats. There are a lot of people that wish that Obama, Nan, and Harry would put as much energy into the stabilization of the financial markets as they have to-date put into giving government provided health care to the children of families of 5 making $100K/yr, or the Porkulus bill, the eye-popping budget outlines, and setting the stage of the battle for nationalized health care. Their priorities are a little askew. As one person put it, it's it like a doctor that finally convinces a patient that he has cancer, but then tells them the best course of action is to go buy a new car!

This isn't to say that Obama and Tim the Enchanter haven't totally ignored the plight of our Financial Institutions, but clearly "The Great Society, New Deal, Camelot V2.0" seem to be getting the lion's share of attention.

 

[OctMtnWoods]

Tell that to an elderly or disabled person who has lost just about everything they had to live on.

Exactly.

 

[bicker]

6763 now

 

[mikehn]

Everyone get out of the market now. We need capitulation.

 

[Laugh O. Grams]

I don't want to get personal, but no financial advisor worth a cent would allow those who are close to retirement to stay heavily invested in equities. Only those with 20+ years left in the market should be invested in equities right now...

Churn and burn, baby...churn and burn...sad.

 

[DisneyMomOK]

6763 now

Corrected title.

 

[sbell111]

Tell that to an elderly or disabled person who has lost just about everything they had to live on.

A person who needs their money in the short term should not have it in the market.

The rest of us should certainly be investing as much as we can avoid. The market is on sale. It's time to buy big and enjoy the huge bump that will eventually happen.

 

[sbell111]

I heard talk this morning of a DOW at 3500 . I've been sticking with it so far but I think I've reached my limit. If it begins to go back up in the future then fine we'll jump back in but for now after loosing at least $40,000 I think were done

Hmmmm. It's important to remember that no loss is realized unless one caches out.

You owe X number of shares. During the period of ownership, the price may rise and fall any number of times. The only two prices that matter are the amount that you paid and the amount that you recieve when you sell.

If you sell your shares now, you lose money because the market is down. If you wait, the market will certainly rise. (History says that the market always rises eventually.) If you buy now, you know that you are buying low (for a long-term investment).

But you go ahead and sell all your stock at a loss, if you wish.

 

[sbell111]

I mean Average Joe working his minimum-wage job with no 401K and no money in the stock market. What does the stock market mean to him and his everyday life?

Nothing, although this would be a good time for him to invest any money that he can spare. Wall Street is on sale at bargain prices.

 

[Geoff_M]

CNBC's Jim Cramer is now talking about how to "Obama-proof" your stocks! Ouch!

 

[DisneyBamaFan]

Hmmmm. It's important to remember that no loss is realized unless one caches out.

You owe X number of shares. During the period of ownership, the price may rise and fall any number of times. The only two prices that matter are the amount that you paid and the amount that you recieve when you sell.

If you sell your shares now, you lose money because the market is down. If you wait, the market will certainly rise. (History says that the market always rises eventually.) If you buy now, you know that you are buying low (for a long-term investment).

But you go ahead and sell all your stock at a loss, if you wish.

How long did it take the market to recover from the crash of 1929?

Investors lost 86% of their investment in 813 days. It only started in 1929. It ended in July of 1932. Imagine you had $100k in investments at the beginning. In July of 1932, that would now be only $14k! It would take you 22 years to get that back to $100k again.

If this crash is as bad, we are only half way to the bottom, and the recovery to our totals of 2007 will not be seen again until 2030...

 

[ICF]

If this crash is as bad, we are only half way to the bottom, and the recovery to our totals of 2007 will not be seen again until 2030...

I think what your ignoring in that compare is what happened to the stocks that people have since bought at discount prices? If they make it up to there inflated 2007 values you probably have made a 50 - 70 % return on those shares even if your pre - 2007 shares have earned you 0% during 2007 - 2030.

 

[sbell111]

Which brings us to our options:

1. Cash out now. This would be a big mistake, since it guarantees your losses.
2. Stop contributing, but leave current investments 'in'. This mitigates your losses over the long term, but as DisneyBamaFan pointed out, you'd likely not make substantive gains from your pre-fall investments for many years.
3. Buy big. The market is on sale. This option gives big gains on the funds invested while the market is down.

I frankly don't understand what all the panic is about. All the big brains have said that it will likely be at least another year before the economy turns. Why are we shocked when it isn't suddenly better? The economy is not a sports car. It's a cruise ship. Sudden turns are bad. Gentle is good.

 

[TCPluto]

Nouriel Roubini says that the banks have to be fully nationalized. He seems to know what he's talking about, and he is well-respected among those in-the-know.

As for the market tanking, it is scary and I feel sorry for the people whose retirement savings have been reduced by as much as...50%?...60%? That's awful.

Personally, however, I could use a 6 month govt-paid vacation. If I get laid-off I wouldn't mind a bit.

Funny how we didn't have to do that ever before....

And that is a huge part of our problem, there are many just like you. Let the government take care of us mentality.....

 

[manning]

Funny how we didn't have to do that ever before....

And that is a huge part of our problem, there are many just like you. Let the government take care of us mentality.....

What did you expect. He has said that Karl Marx was a smart man.

 

[AlexandNessa]

Wait. I'm sorry. Do you mean to tell me that the government is not going to bail me out of my stock market losses? I don't get a stimulus check to cover that? Seriously?

 

[Gary M]

http://www.youtube.com/watch?v=cMnSp4qEXNM&NR=1


The above link explains some of the causes of the financial problems from the conservative side. I'm sure the liberals have another story.

 

[AndyLL]

Wait. I'm sorry. Do you mean to tell me that the government is not going to bail me out of my stock market losses? I don't get a stimulus check to cover that? Seriously?

You have no losses until you pull your stocks out of the market.

The government is bailing you out by preventing the huge banks from failing.

If AIG, Citigroup, GM or any of this huge companies fail they will take out 100s of other companies all whos stock will become worthless... then people will be taking losses they can't recover from.

 

[AlexandNessa]

You have no losses until you pull your stocks out of the market.

The government is bailing you out by preventing the huge banks from failing.

If AIG, Citigroup, GM or any of this huge companies fail they will take out 100s of other companies all whos stock will become worthless... then people will be taking losses they can't recover from.

Clearly, my attempt at humor has failed.

 

[bicker]

Typically these help communicate humor: