Originally posted by: little elvis
I was watching CNBC yesterday, and many "analysts" were demanding that the government jump in and start buying stocks to stop the slide... *sigh*
I'm hoping we hit bottom at 8000, but, if GE, who reports earnings before the open, misses expectations by a large margin, we may hit 7500 or lower.
Originally posted by: little elvis
I was watching CNBC yesterday, and many "analysts" were demanding that the government jump in and start buying stocks to stop the slide... *sigh*
I'm hoping we hit bottom at 8000, but, if GE, who reports earnings before the open, misses expectations by a large margin, we may hit 7500 or lower.
Originally posted by: Skoorb
I can't believe some want the government to buy in to prevent the slide, but I have heard it. Completely insane.
Originally posted by: dullard
A few months ago, I said it'll bottom at 9000 (here). Clearly, I was wrong. At this point, we just have panic selling instead of trading on the basis of fundamentals (ie what can the stock market support based upon the number of people, inflation of prices, and profits of companies). Thus, it is very unpredictable. My gut reaction says ~7500 is the new low. But, I can't base that on history, or on facts, or on anything.
I edited the same time you posted. I meant to say 7500 on a close. But again, that is just a pure guess on my part. I'm ready to pull the trigger at any moment for the measly amount I have in my savings account and go all in on stocks. I just need some good news first.Originally posted by: Engineer
Can we just ~ equate the 7882 today to the ~7500 and go up from here? Please?
This is just tearing my guts out here....I'm about to just give up and say fuck it.
http://londonbanker.blogspot.c...ulence-and-trends.html"Iceland collapsed. It was more of a hedge fund than a country, with it?s 200,000 population supporting a massive leveraged position in financial markets via risk loving bankers and financiers. There were approximately 200,000 British depositors in accounts offered by Icelandic banks. Local authorities (municipalities) and charities were also big investors, exposed for more than £700 million. As a result, the government has frozen Icelandic-owned assets in the United Kingdom ? using terrorism legislation, naturally ? to provide the basis for a partial recovery of the losses likely to be incurred."
No, Engineer, this is purification by fire. You will be better for it later. We all will.Originally posted by: Engineer
Originally posted by: dullard
A few months ago, I said it'll bottom at 9000 (here). Clearly, I was wrong. At this point, we just have panic selling instead of trading on the basis of fundamentals (ie what can the stock market support based upon the number of people, inflation of prices, and profits of companies). Thus, it is very unpredictable. My gut reaction says ~7500 is the new low. But, I can't base that on history, or on facts, or on anything.
Can we just ~ equate the 7882 today to the ~7500 and go up from here? Please?
This is just tearing my guts out here....I'm about to just give up and say fuck it.
Originally posted by: mshan
http://londonbanker.blogspot.c...ulence-and-trends.html"Iceland collapsed. It was more of a hedge fund than a country, with it?s 200,000 population supporting a massive leveraged position in financial markets via risk loving bankers and financiers. There were approximately 200,000 British depositors in accounts offered by Icelandic banks. Local authorities (municipalities) and charities were also big investors, exposed for more than £700 million. As a result, the government has frozen Icelandic-owned assets in the United Kingdom ? using terrorism legislation, naturally ? to provide the basis for a partial recovery of the losses likely to be incurred."
This really sounds like a global run on banks by really, really, really rich people that are worried plain and simple about getting any of their money back right now (return of money, not return on money).
Technicals and historical retracement percentages may be meaningless temporarily, and it may only stop when all of these super rich people that want to get out get out (selling exhaustion).
The London Banker blog above said that Iceland basically went bankrupt, and England froze Icelandic Bank accounts, trying to get some of their citizens money back. Seems like a replay of what happened when Lehman went bankrupt and hedge funds couldn't get their money out of Lehman's arm in England.
Finally, an optimistic note. I was reminded yesterday that the vast bulk of ?wealth? created during the Greenspan/Bernanke bubble years accrued to the very top percentiles of population ? with many in the OECD middle class and lower class either stagnating or getting poorer as they mired themselves in unsustainable debt. While opportunity and employment grew strongly in emerging countries, there too the elites gained disproportionately as income inequalities surged. The crash of global financial markets therefore will have disproportionate effect on the elites, impoverishing them to a far greater extent, although it will be felt throughout society as employment, pensions, investments and public services contract.
Once we hit bottom of this downturn, some years hence in all probability, we may experience a democratisation of wealth and opportunity like none seen since the end of World War II when education reforms and unionisation laid the groundwork for the rise of the American and OECD middle classes. Those who have lost economic and political power during the boom years, are likely to organise and retake authority within economic and political systems during the bust years. The collapse of concentrated wealth in Wall Street will spur more collaborative capital formation and investment throughout the economy. This could provide reorientation of economic progress toward more equitable, sustainable and democratic outcomes in coming generations. I hope so, it?s the only bright spot of the week.