One year after the Market Collapse

Discussion in 'Economy' started by rightwinger, Mar 9, 2010.

  1. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    Debate on the Great Recession ? Our view: Stocks rebound from bottom, face tough climb ahead - Opinion - USATODAY.com

    On a particularly dreary day one year ago, the Dow Jones Industrial Average closed at 6,547, a sickening 54% plunge from its peak in the fall of 2007. The network news broadcasts that evening had an almost apocalyptic tone to them. Some of America's mightiest corporations were priced like penny stocks. On CNBC, billionaire investor Warren Buffett told viewers that he had never seen Americans more afraid.

    No one knew it then, but March 9, 2009, was the bottom. Anyone who still had the cash and the nerve to follow Buffett's dictum — the one about being greedy when others are fearful — made out quite well. While many prognosticators, including President Obama, had suggested around the time that stocks looked cheap, virtually no one foresaw the 60% surge in the Dow — and 70% rise in the broader Standard & Poor's 500 index — that has transpired since.

    So much for the experts. For the most part, they missed the crash. And, at least in degree, they missed the recovery. With the benefit of hindsight, it's apparent that stocks were ridiculously low a year ago as panic gripped the market, financial institutions teetered and even corporations with healthy balance sheets were priced for potential bankruptcy.




    Still think TARP and the Stimulus package was a waste of money???
     
  2. Shorebreak
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    Shorebreak Active Member

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    So the stock market is the measuring stick for economic vitality? Who've you been listening to? CNN? FOX? PBS? The Government? If the economy is doing good, please explain it to these folks from the following links - from a VERY small percentage of stories that just came out in the last 24 hours.

    TARP wasn't a rescue. It was (and continues to be) the largest theft in the history of mankind.

    Shawnee Mission Schools Cutting $10 Million, 128 Jobs - Education News Story - KCTV Kansas City

    9NEWS.com | Denver | Colorado's Online News Leader | Amazon cuts off Colo. affiliates because of tax

    Most Americans still unprepared for retirement - survey - Mar. 9, 2010

    Failed Banks May Get Pension-Fund Backing as FDIC Seeks Cash - BusinessWeek

    TaxProf Blog: CBPP: 33 States Have Raised Taxes by $32 Billion/Year

    Counties face more cutting as state income tax payments fall - baltimoresun.com

    toledoblade.com -- The Blade ~ Toledo Ohio

    Annapolis Mayor Gets Security Before Layoffs | ABC 7 News

    VPR News: Vermont's Revenue Picture Worsens

    If school budget cuts depended on February revenues, start panicking | Get Schooled
     
  3. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    U6 Unemployment is near 17%. Yeah, that was certainly worth it.

    We are in a bubble economy. The big increase in the money supply is in a constant search for assets: Dotcom Stocks, Real Estate, Derivatives, Stocks....

    The Big Money loves it - they can play the volatility, while it destroys the savings of those whose who work for a living.
     
  4. uscitizen
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    uscitizen Senior Member

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    I still think TARP was fundamentally wrong.
    If someone beats me up and takes my money and I see them later dying from choking on a steak that my money bought....
    Should I care if they die?

    Stimulus funds are however needed if spent properly.
     
    Last edited: Mar 9, 2010
  5. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    Well, the 2009 Stimulus was just a barrel of pork for Congress to spread around prior to the election. It has been Less Than Helpful.
     
  6. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    Another misrepresentation of stimulus funding..

    It provided a much needed punch in the arm for the economy and sent a message that the Government was not going to stand idly by as the economy collapsed.

    The market reversed two weeks after the Stimulus passed
     
  7. Paulie
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    Paulie Platinum Member

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    Wow, I would have never guessed that you thought like this.

    Not many posters around here recognize the link between the money supply and the surge in asset markets over the past year.
     
  8. CrusaderFrank
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    CrusaderFrank Diamond Member

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    Looks like Bush was right about letting people put their SocSecurity Trust Fund to work in US equities.
     
  9. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    Personally, I do not care. As long as they don't whine if they lose their money
     
  10. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    Here's a little story about that: You're wrong.

    The majority of it hasn't even been spent. It is sitting there to be used by the Dems to buy votes this fall.

    It would have been much better for the economy to cut payroll taxes and avoid the ObamaCare and Cap&Tax nonsense that has put a chill on the economy. The fact that Obama predicted the stimulus would cap unemployment at 8% when it has soared much higher proves what a FARCE the barrel of pork is.
     

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