You don't have to own to rule - Wall St.

[Gary Allan]

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They're going to wear out their thesaurus pretty soon if 2% is a "plunge".

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Well, depending on how you spin the employment numbers ..1%+/- determines whether we're in an inflationary environment or a recession. Naturally, the "spin" tends to manipulate the real number.

That is, we're extended, very far, in terms of 100% utilization of all available resources. Credit, debt, productivity ...there are just no more corners to sweep out at the scramble for the crumbs.

So, YES, 2% is a major hit.

But beyond all of the theoretical models working as they're supposed to in the self regulating manner that they surely can, there is some false notion that there is a sustainable environment for them to operate in a "business as usual" manner. The ultimate functionality of any given governess requires some form of assumed substrata to support it. In my interpretation of our "max utilization" in extraction market trends ...I see only "thin ice" supporting the system of distribution (of wealth, whatever).

Why would anyone embrace a economic theory of over extension as being valid ..when they would never sensibly practice this form of personal economics?? Would you ever put yourself at that level of "risk"? No, but for some reason ..it's a sensible way to run an economy and derive profit from. That is, capitalization on the vulnerabilities in the process ..while assuring that you're exempt from that which you say is "good".

How does this add up as not a formula for disaster with you managing to build, as best you can, your life boat? Why set a course for a disaster in the first place?

 

[1sttruck]

"Stocks go up, then they go down."

Yup, but who does a consistently good job of forecasting such movements ? I guess the best that we can hope for is having a portfolio that does well over time, even if it is still at risk as we don't really know why it does it well.

 

[GROUCHO MARX]

Despite the "thin ice" there is opportunity for people willing to work. Some of these people will be compensated at a greater rate than others.

The unwilling will complain that the government isn't doing enough. I wish the government would do less.

 

[Jaybird]

Gary, with the high volumes the market is seeing, it makes a 2% drop even less significant.

Our economy is very strong, such that it can withstand fluctuations that would have been close to a doomsday scenario in years past.
In todays market, these changes are but blips on the screen. Fodder for the chart guys.
I noticed the Dow gained nearly 100 pts yesturday. Amazing huh?

 

[Shannow]

Personally, I would have thought that 2% of a large number (today), is the same as 2% of a smaller number (the other day).

That's the reason for percents.

Even using rates of change 2% in 24 hours is the same

 

[oilyriser]

You also have to account for changes in currency, the units used to measure the stock market. If the currency drops by 50%, and the stock market index rises 100%, people may feel richer and spend more, but nothing has really changed.

 

[Gary Allan]

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Despite the "thin ice" there is opportunity for people willing to work. Some of these people will be compensated at a greater rate than others.

The unwilling will complain that the government isn't doing enough. I wish the government would do less.

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Me too. The Fed making cheap money available when we don't warrant it - congress for expanding the debt limit ..allowing trade that we can't afford to pay for ..subsidizing ag products .. brokering away jobs to our allies to support them in jobs while losing them here...all kinds of stuff that no one seems to take exception to because it serves their portfolio AT THE MOMENT.

Any of you hard core economic conservatives REALLY want the chips to fall as they may?? Doesn't seem like it to me.

 

[Gary Allan]

Let me add that I don't fault anyone, in any way, for participation and realizing "gain" under the status quo ..but to deny that it's a programmed disaster for a good chunk of our society is just a blind eye view.

We're being milked. Catch what you can of the drippings.

 

[oilyriser]

The policy is two-pronged: Create easy credit to make people think they are wealthy, and create demand by waging continual wars, which destroy property. The fire burns hotter, but runs out of fuel faster.

 

[Shannow]

Oz sharemarket dropped 3.3%. Consumer debt up 3% in the last MONTH.

Crazy.

At least interest rates will go up tomorrow, giving me a few extra buck/month interest.

 

[Gary Allan]

Shannow ..that's the spirit! Always look on the bright side of life!

 

[Gary Allan]

Markets Fall as Lender Woes Keep Mounting
Sara Krulwich/The New York Times

It has been a volatile two weeks on the New York Stock Exchange, and yesterday was no exception.


The latest decline capped a volatile two weeks on Wall Street in which the stock market has swung wildly from day to day, reflecting rising uncertainty about the outlook for markets and the risks plaguing the economy. The biggest moves lately have often occurred shortly before trading closed.

Indeed, the market dropped particularly sharply yesterday afternoon after investors were rattled by remarks by executives at Bear Stearns, the investment bank that has been heavily involved in mortgage securities. The firm’s assurances about its own financial position were overshadowed by bleak comments by its chief financial officer about the credit markets.

“I have been at this for 22 years, and this is about as bad as I have seen it in the fixed-income market,” said Samuel L. Molinaro Jr., Bear Stearns’s chief financial officer.

The Standard & Poor’s 500-stock index fell 2.7 percent yesterday, with much of the decline coming after Bear’s conference call started around 2 p.m. The Dow Jones industrial average lost 281.42 points, or 2.1 percent. And the dollar fell noticeably against the euro and the British pound.

NY Times - registration required to view

 

[Shannow]

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Shannow ..that's the spirit! Always look on the bright side of life!

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Interest is up another half week's pay for the next year.

I think the Brussell's sprouts, cabbage, and sweet corn might make a dent in it.