Finally, Some Good News!
Filed under: Business BlitzThe Dow bounced back big time on Monday - soaring 936 points!
A rebound is in the works, y'all.
Posted: October 13, 2008 at 4:45 pm
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37 comments to “Finally, Some Good News!” |
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Helllls yeah.
woohoo woohoo. i'm not gonna hang myself after all.
hellz yaaaaaaaaa mutha fucker…… dubya fixed this beoych……
hallelujah!
it may still be erratic over the next few weeks, but it's sure nice to get some good news for a change!
NO! This is not good news at all! A rebounding/recovered economy will hurt Barack Obama's chances to win in a few weeks. The economy has to continue to tank at least until He is elected.
VICTORY THROUGH OBAMA! PRAISE TO OUR SAVIOR FOREVER! DEATH TO ISREAL!
Barack Obama: He'll save every man, every woman, every child, every one!
hm .
YAY!!!!!
Well of course this happened. Bush was right with his bailout plan. I'm glad your finally seeing that fatso. You did nothing but bash him last week now his plan has worked. What do you have to say for yourself doughboy.
Re: ObamaistheMessiah – STFU
Good - but expected. The big money boys tell you to sell while their buying. Don't trust any of the 'talking heads' on TV. They manipulate the market so they get rich and you lock in the loss's.
Re: ObamaistheMessiah –
perez ban this turd
The greatest gain ever in the Dow must be George Bush's fault said doomsayer Barack Obama. See Truth According To T o m
GO OBAMA!
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STOCK INJECTIONS ARE WORKING!
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THANK OBAMA AND THE DEMS FOR THAT! AH THANK YOU!
Re: ObamaistheMessiah – 6 YOU NEED TO BE PUT DOWN YOU DROWN OF THE REPUBLICAN ARMY.
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SHUT THE FUCK UP!
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GO JERK OFF WITH YOUR VERBAL MASTURBATION SOMEWHERE ELSE.
Re: sweetpiece – DRONE! ROBOT! YOU GET THE PICTURE.
Re: ObamaistheMessiah –
Put your head up your ass and inhale deeply you dumb ass nutbag.
(CNN) — Many Americans today are asking themselves how the economy got to be in such a bad spot.
For years they thought the economy was booming, growth was up, job numbers and productivity were increasing. Yet now we find ourselves in what is shaping up to be one of the most severe economic downturns since the Great Depression.
Unfortunately, the government's preferred solution to the crisis is the very thing that got us into this mess in the first place: government intervention.
Ever since the 1930s, the federal government has involved itself deeply in housing policy and developed numerous programs to encourage homebuilding and homeownership.
(PART II)
Government-sponsored enterprises Fannie Mae and Freddie Mac were able to obtain a monopoly position in the mortgage market, especially the mortgage-backed securities market, because of the advantages bestowed upon them by the federal government.
Laws passed by Congress such as the Community Reinvestment Act required banks to make loans to previously underserved segments of their communities, thus forcing banks to lend to people who normally would be rejected as bad credit risks.
These governmental measures, combined with the Federal Reserve's loose monetary policy, led to an unsustainable housing boom. The key measure by which the Fed caused this boom was through the manipulation of interest rates, and the open market operations that accompany this lowering.
Don't Miss
* Obama blames lobbyists, politicians for crisis
* Commentary: McCain, Obama botching response to crisis
* Commentary: How to prevent the next Wall St. crisis
* In Depth: Commentaries
(Part III)
When interest rates are lowered to below what the market rate would normally be, as the Federal Reserve has done numerous times throughout this decade, it becomes much cheaper to borrow money. Longer-term and more capital-intensive projects, projects that would be unprofitable at a high interest rate, suddenly become profitable.
Because the boom comes about from an increase in the supply of money and not from demand from consumers, the result is malinvestment, a misallocation of resources into sectors in which there is insufficient demand.
In this case, this manifested itself in overbuilding in real estate. When builders realize they have overbuilt and have too many houses to sell, too many apartments to rent, or too much commercial real estate to lease, they seek to recoup as much of their money as possible, even if it means lowering prices drastically.
wow u guys are really excited? maybe u should look into the hyperinflation that will follow, the rise in oil again, and of coure the drop of the dollar cause thats what the bailout caused…….the stockmarket went up, commodities went up, and the dollar went down. do ur research!
I'M NO ECONOMIST MARIO…BUT I SAID THAT SHIT WAS GOING TO HAPPEN ON FRIDAY!!!!
SHOULDA USED ME AS A SOURCE!!!!
TO REFRESH YOUR MINDS OF WHAT I POSTED ON FRIDAY
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NOW FOR THE FUN FUN FUN POLITICS OF THIS SITUATION…IF NOT FOR DEMOCRATS AND THEIR "EVERYONE DESERVES A HOUSE AND MORTGAGE" RHETORIC THIS PROLLY WOULD HAVE NEVER HAPPENED. WHEN SOMEONE WHO ONLY MAKES 35K A YEAR TAKES A NOTE ON A 300K HOME…WHAT ARE THE ODDS OF THEM BEING ABLE TO PAY IT OFF?? WHAT HAPPENS TO THE NOTE ON THE HOUSE THAT BANKS SELL BETWEEN EACHOTHER? IT BECOMES WORTHLESS CAUSE THE GUY WHO ISN'T PAYING ON HIS MORTGAGE MAKES THE WHOLE CHAIN OF PAPER TAINTED. SO…THEN THE CREDIT LINES DRY UP THEN BANKS FAIL…THEN THE MARKET LOSES 20% OF ITS VALUE….JUST LIKE THIS WEEK.
NOW THE
Re: itsaboutprinciplepeoplebaldwin4pres08 – THE DOLLAR IS GOING UP… THE EURO IS GOING DOWN OIL PRICES ARE ALSO DROPPING WHAT IS HAPPENING NOW IS A SIMPLE MARKET CORRECTION…WHEN THINGS DROP…AT SOME POINT THEY MUST COME UP!!
WITH AMERICAN EUROPEAN AND ASINA COUNTRIES HELPING BANKS…THE INVESTORS "REGAIN" CONFIDENCE.
THE STOCK MARKET IS CYCLICAL.
WITH THE INTEREST RATE DROPS ON MANY GLOBAL ECONOMIES CONFIDENCE WILL BE INSTILLED…WHEN A COUNTRY DROPS ITS INTEREST RATE CREDIT IS FREED UP…MAKING MONEY EASIER FOR PERSONS AND BANKS TO TRADE AND ATTAIN.
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THE STOCK MARKET HAS A NET 10 YEAR AVERAGE OF MORE THAN 10% GROWTH. THE STOCK MARKET IS A VERY VERY RELIABLE OUTLET FOR LONG TERM…LONG TERM INVESTMENTS…IF YOU HAVE THE ABILITY AND PATIENCE TO ENDURE MARKET UPS AND DOWNS…YOU WILL BE REWARDED!!!!!
IT IS CALLED PATIENCE…THE STOCK MARKET IS A LONG TERM INVESTMENT…SHORT SELLING AND DAY TRADING IS A "QUICK" WAY TO TRY TO MAKE GAINS BUT ALSO A VERY VERY DANGEROUS WAY!
Vote for the President who is going to lead our country back to economic stability! Vote Obama in November!
Oh yeah? Then why hasn't the US shelled out any of its magic $750 million bailout money yet?
You guys are screwed.
Re: luvtoread – How exactly is he going to do that???
Don't get so excited. This is called a "dead cat bounce" in stock market terms. When ever there is a sharp decline in a stock, it will go momentarily up again, like anything when it falls from a great height, and with go back down to the ground to lay.
Re: luvtoread – WHEN THE BAILOUT WAS BEING VOTED ON OBAMA SAID "CALL ME IF YOU NEED ME…I'M BETTER OVER THE PHONE" INSTEAD OF GOING BACK TO D.C. TO DO HIS JOB…
NOW 2 MORE THINGS TO THINK OF HERE.
1. YOU DON'T NEGLECT YOUR FIRST JOB WHEN "LOOKING" FOR A SECOND ONE(WHICH IS WHAT OBAMA DID)
2. ITS PRETTY INTERESTING HOW QUICKLY OBAMA CAME BACK TO D.C. WHEN PRES. BUSH TOLD HIM TO GET HIS ASS BACK ON A PLANE AND DO HIS DAMN JOB!!!!!
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SENATOR MCCAIN HAS BEEN ON THE FOREFRONT OF THE ATTEMPTS TO HAVE SOME SORT OF OVERSIGHT WITH FANNIE MAE AND FREDDIE MAC FOR YEARS!!!!! THE DEMOCRATS WERE THE ONES WHO DIDN'T WANT REGULATIONS.
BARNEY FRANK ATTENDED A BANKING COMMITTEE HEARING IN 2004 AS MINORITY LEADER OF THE COMMITTEE AND SAID "THERE SEEMS TO BE NOTHING WRONG WITH THE SYSTEM AS A WHOLE AS OF RIGHT NOW"…
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THE HOUSE COULD HAVE VOTED THE FIRST BAILOUT INTO EFFECT…IF THE 12 OUT OF 37 PEOPLE IN BARNEY FRANK'S OWN BANKING COMMITTEE WOULD HAVE VOTED YEA…AND SPEAKER PELOSI TELLING ANOTHER 15 PEOPLE (ALL DEMOCRATS) IN "TIGHT OR DISPUTED" CAMPAIGNS FOR THEIR HOUSE SEATS THAT THEY COULD VOTE NO…
WITH THE MAJORITY THE HOUSE HAS THEY CAN DO DAMN NEAR ANYTHING THEY WANT TO…THEY CHOSE TO VOTE THE FIRST BAILOUT DOWN…TO MAKE THINGS LOOK LIKE THE REPUBLICANS WERE THE AT FAULT PARTY…
One of the burning questions regarding the recently passed bailout, and the one that almost no one has bothered to answer, is how the government intends to pay for it. Governments have three main methods by which they can raise funds: taxation, printing new money, and debt. As our $10 trillion national debt shows, the federal government has always enjoyed raising money by issuing new debt. Money is gained upfront, while the cost of repaying that debt is pushed onto future generations.
This method is especially favored today, since imposing $700 billion worth of taxes would lead to widespread public dissatisfaction. When the cost of all the recent bailouts plus the cost of all the new lending facilities the Federal Reserve has initiated are added together, we quickly reach a figure in the trillions of dollars. Even with the debt ceiling being raised to $11.3 trillion, the issuance of debt alone cannot begin to cover the cost of all the bailouts in which the government is engaged. Every indication is that the government will use both debt and inflation in its attempt to keep the economy running at full speed.
Debt financing has begun in earnest, as the national debt has increased $600 billion over the past three weeks, and most of that increase came even before the $700 billion bailout bill was passed. I fully expect that trend to continue in the near future and would not be surprised if we see another debt-limit increase slipped into another economic stimulus package that might be passed before the new year. Now that our foreign creditors are less willing to purchase our debt, what debt we cannot sell to foreigners will be monetized through the Federal Reserve, resulting in increased inflation.
In fact, money supply data for the narrowest measure, the adjusted monetary base, show an unprecedented increase, far higher than when Chairman Alan Greenspan attempted to reflate us out of trouble after the dot-com stock bubble burst. That intervention on Greenspan's part, pumping in liquidity and driving interest rates down, led to the real estate bubble, and Chairman Ben Bernanke unfortunately seems to be following the same script as his predecessor in resorting to credit creation and low interest rates. Even were this effort to succeed, it would only delay the inevitable. In order for the economy to return to normal, the Federal Reserve must cease the creation of new credit, overvalued assets must be allowed to fall in price, and malinvested resources must be allowed to liquidate and be put to use in more productive sectors.
The government's reaction to the credit crisis is based on the erroneous belief that the rate of economic growth over the past 10 to 15 years was the result of natural free-market processes, which is not the case. Rates of economic growth during the dot-com and real estate booms were clearly indicative of an overheated economy, and any attempt to try to stimulate the economy to return to such rapid growth will fail. Rather than allowing asset bubbles to pop and malinvested resources to liquidate, Federal Reserve monetary policy has attempted to pump more and more new money and credit into the system to try, in vain, to sustain the economic boom.
The monetary base jumping by such a large margin is an indicator that the Federal Reserve has not learned from its mistakes and is hoping to get out of this economic downturn by creating even more credit out of thin air. With such large increases in the monetary base and with banks legally able to hold zero reserves, the vaunted money multiplier effect could theoretically reach infinity. If our policymakers fail to come to their senses, there is a real danger that we could end up in a hyperinflationary crisis such as the ones that beset Germany in the 1920s and Argentina and Zimbabwe in more recent decades
The common measure of inflation, the consumer price index, has been so manipulated over the years that it cannot be trusted to be an accurate indicator of the true effect of inflation on people's pocketbooks. This is especially true of “core inflation,” which eliminates food and energy prices, the two staples that are most important to every American. When the CPI figure is computed using the original method of calculation, it comes out to more than 10 percent per year, which is a more accurate indicator of the inflation being felt by middle-class Americans.
For years, I pointed to the now-discontinued M3 money supply figure, the broadest measure of the total money supply, and remarked how its rate of growth far outpaced the officially reported rate of inflation. Since inflation is chronically underreported, I continue to view money supply figures as a more accurate indicator of the true direction of prices. Now that the monetary base has spiked so dramatically, the result will be seen over the next few months as this new credit works its way through the system, resulting in significantly higher inflation. Unfortunately, because M3 is no longer reported, the full effect of this inflation on the U.S. economy will go unreported in official statistics.
Our government has lived beyond its means for decades. We now face a crucial juncture, at which we determine whether to continue down the path of debt, inflation, and government intervention or choose to return to the economics of the free market, which have been ignored for almost a century. Increased debt leads to higher taxes on future generations, while increased inflation diminishes the purchasing power of American families and destroys the dollar. No society has ever been achieved prosperity through indebtedness or inflation, and the United States is no exception. We cannot afford to continue our current policies of monetary expansion and unending bailouts. Unless we return to sound monetary policy, sharply reduce government expenditures, and realize that the government cannot act as a lender of last resort, we will drive our economy to ruin.
Oh yeah and Ron Paul wrote that article……not me.
Perez, you really should stick to being the nasty gossiping queen that you are and leave reporting on things like the economy to people who have some idea what they are talking about.