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DOW hits 5 year low

Discussion in 'Economics and Financials' started by Vengeful Odin, Oct 7, 2008.

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  1. Vengeful Odin

    Vengeful Odin Norse Mod

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    The economy just continues to stagnate. It's almost like the "bailout" worsened the situation, instead of stabilizing it. We just hit a 5 year low.

    CNNMoney.com Market Report - Oct. 7, 2008

    Things just continue to trend down ...

    [​IMG]

    I don't pretend to be an economist but there's no denying this looks bad.
     
  2. unluckyluciano

    unluckyluciano For My Hero JetsSuck

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    I don't think the bailout made it worse, from what I understand investors basically don't think its enough:

    link

    Some of it also has to do with the asian and european markets now having trouble.
     
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  3. Vengeful Odin

    Vengeful Odin Norse Mod

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    With it being a global market, it's almost like we're seeing an exponential problem.

    The Dow goes down ... global markets follow. The global markets go down, the Dow follows. It's a vicious circle.

    We've got folks like Jim Cramer saying to get out now. Things are nuts.
     
  4. joeydolfan

    joeydolfan Season Ticket Holder Club Member

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    U.S. Stocks Drop; S&P 500, Dow Post Worst Retreats Since 1937


    http://www.bloomberg.com/apps/news?pid=20601087&sid=aBuMcg50xGVg&refer=worldwide
     
  5. Ludacris

    Ludacris Season Ticket Holder Club Member

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    We all knew the US economy would go into a recession a year ago. Why all the sudden realization now?
     
  6. joeydolfan

    joeydolfan Season Ticket Holder Club Member

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    Too many Jackasses like Jim Cramer on T.V. telling the gullible public we wouldn't. :lol:


    We were just the 1st shoe to drop, Europe, U.K., New Zealand have all hot major slumps now. Australia is next, the property market has softened, but it will come down more than they expect. Alot of the negative gearing there will exasperate the problem once it begins.
     
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  7. texasPHINSfan

    texasPHINSfan New Member

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    i really hate that guy.
     
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  8. FiN.in.RI

    FiN.in.RI Paul pierced through..

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    I'm a fan of Larry Kudlow. He is a kool-aid drinker but there are usually very good opinions from highly respected individuals on that show and they will usually come from the bear and the bull side. Very informative show as well. I enjoy it.
     
  9. Ludacris

    Ludacris Season Ticket Holder Club Member

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    Damn optimists...

    Yeah. i'm pretty worried about our housing market. It's not a huge bubble but they are overpriced. I also fear a slow down in that sector. Hopefully our mining industry holds us steady.
     
  10. FiN.in.RI

    FiN.in.RI Paul pierced through..

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    FWIW I've been seeing more an more For Sale signs becomming Sold signs in my area.. I hope this trend continues.
     
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  11. azfinfanmang

    azfinfanmang Premium Member Luxury Box

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    Yeah, that has been the trend here as well. 6-9 months ago, you couldnt give a house away in our neighborhood. That has changed as of late...either that or people just arent willing to test the market.....:pity:
     
  12. FiN.in.RI

    FiN.in.RI Paul pierced through..

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    Pending sales were revised upward in July I believe and August's pending sales were up 8 percent(taking the experts by surprise), nationwide. That's a very good sign if we can just keep this trend going.
     
  13. padre31

    padre31 Premium Member Luxury Box

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    Nailed that one joeyd, people want to believe markets only go upwards, never downwards..

    Actually I need a little more downwards, I'm looking at buying DUK...:up:

    I think people are missing the point of the bailout, it cannot fix everything, all it is meant to do is save that which can be saved in the US and some places abroad.

    For example, AIG just took out another 37 Billion dollar loan from the NY Federal Reserve...AIG will make it, but other companies will not.
     
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  14. FiN.in.RI

    FiN.in.RI Paul pierced through..

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    Yes, AIG will make it. AIG must make it, pretty much at all costs, for the sake everything holy. Other companies will fail and fall but that's what happens in a free market. When the dust settles, there will be those companies that rise up to take their places more or less.
     
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  15. padre31

    padre31 Premium Member Luxury Box

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    Exactly, for every Metlife there is another company to take their place.

    People get soo fearful, they should shut off their TV's, take a walk, and see what happens, the avg bottom is 30%, we are at 36%, so this time is a little worse, "but" there will be a rebound.

    Right now Stocks with high dividends are only becomming cheaper, and soon I'm going to plunk down some money and get a 4% or more yield at a 35% price reduction...

    Nice.
     
  16. azfinfanmang

    azfinfanmang Premium Member Luxury Box

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    Thanks for the voice of reason.

    I am FAR from being a Stock-wise type of guy, or an Financial expert, but, I do understand that he Market has Peaks and Valleys. This Valley is just much deeper than usual.
    What that means is that GOOD stock is becoming cheaper, so those that invest wisely make a freakin fortune.
    Also, this country has ALWAYS made it on new companies that replace old ones. That is the cornerstone of our economy.

    Right? Or am I missing part of the picture


    BTW: I really enjoy seeing those of you that really understand this stuff converse. Makes me a little smarter everyday I guess :shifty:
     
  17. padre31

    padre31 Premium Member Luxury Box

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    I'm no expert AZ, but this is the fourth Wall Street "crash" I've been through, the same things are said every time.."worst ever...blah blah blah"..

    I think this one will be worse then average, to many people and too may companies took on Bad Debts, "but" for every Wachovia, there is a Wells Fargo.

    I'm the smallest of small investors, very very Conservative, reinvest dividends, buy tax free bonds, and you make money, not as much as you could, but as long as you are making yours...

    BTW AZ, 92% of banks are doing just fine, regional banks like Sovereign are doing well, and have credit to offer, those are the future winners, America is into Consumerism, once this stuff clears out, people will start borrowing again, it's human nature, like smoking or drinking.
     
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  18. azfinfanmang

    azfinfanmang Premium Member Luxury Box

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    Thanks bro :hi5:

    Yeah, thats pretty much what I take from it. I have been through a few as well...is that possible at 13? :shifty:

    BTW: I play pretty much the way you do. Make a little, then reinvest said profit. My regular job pays me enough for Milk and Bologna :wink2:

    Now then, I have a handful of accounts through a Credit Union. Any affect there does anybody think?
     
  19. texasPHINSfan

    texasPHINSfan New Member

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    Padre, thanks for all your contributions in this thread. i agree 100%! thanks for being a voice of reason in times when everyone is playing chicken little. :up:
     
  20. pocoloco

    pocoloco I'm your huckleberry Club Member

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    buy low, sell high. this is a young guy's buyer's market now (since they can afford to sit on these investments for years), I think that's why you see the dow start off going up only to tank later in the day. bargain hunters buy what they're gonna early in the day
     
  21. joeydolfan

    joeydolfan Season Ticket Holder Club Member

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    Market turned negative in the last 14 minutes of the trading day yesterday. Today we are tanking even further in the last hour. Wonder where the FEDS plunge protection team is today?

    Talked to a few trading desks, Margin calls is ramping up the selling. I still cant believe guys in this business let their clients stay on margin after the pain everyone saw during the tech bust.
     
  22. jdang307

    jdang307 Season Ticket Holder Club Member

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    Thank god there's only 8 minutes left, no time for the circuit breakers to kick in.

    Jesus
     
  23. Vengeful Odin

    Vengeful Odin Norse Mod

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    Wow ... it ended nearly 700 points down ... not good.
     
  24. padre31

    padre31 Premium Member Luxury Box

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    Let me gently dispute that, "yes" another crappy day, "yes" there will be more crappy days, but every fortune is built on the ashes of someone else's fortune.

    DUK is down to 15.17, I need it down around 13 bucks or so...
     

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