Black Monday...

[Small Business Owner of Any Repute]

Shucks.  Time to boost my 401(k) contribution and push a little bit extra into my IRA.  I'd buy into a financial sector SPDR, but I'm hestitant considering that a large number of the companies in there are headed down to worthlessness.  (And a few others are already there.)

[Dan the Roman]

Shucks.  Time to boost my 401(k) contribution and push a little bit extra into my IRA.  I'd buy into a financial sector SPDR, but I'm hestitant considering that a large number of the companies in there are headed down to worthlessness.  (And a few others are already there.)

I'd personally look at RDN if you are feeling chancy. Heavily undervalued and for day trading it can't e beat. If you are feeling safer check out some of the forign banks(ie. Bank of Chile, Lloyds, Barclay's) they have not been that hard hit by the credit crunch and are using it as an opportunity to expand into the US.

[opebo]

Pollyannas, your confidence in 'everything being all right' is based on the Keynesian past, when of course everything was always all right because the government made it so. 

It is hardly clear that enough of these good policies survive to still save capitalism from itself - the last 30 years of idiotic destruction by impractical right-wing ideologues has put us in grave danger.  (perhaps I should clarify what I mean when I say 'grave danger': only the poors may actually die, the workers will see even further erosion of the standard of living;  the rich of course will be largely unaffected, accept in terms of numbers in accounts, not in the sense of their well-being, power, or position in society)

Most assuredly the simpletons will lower interest rates again, this being the only macroeconomic State action they can accept.   But as anyone can see, this is not effective.  Only massive State imposed income growth for the lower classes can solve any of these problems.   Please see the lessons of history, 1880-1980.

[opebo]

The economy really sucks, and I don't understand why McCain is still leading in the polls.

Racism trumps bread on the table, jfern.  Or another way to put it is - its the fault of the blacks that there isn't bread on the table, not the owners.

[J. J.]

Basically, you are looking a segment of the financial markets that took a hit today.  The market just responded, but there is a least a 50% that the market will absorb the hit.

[daboese]

Unless there is a chain reaction and another large bank goes down.
Let's hope that this won't happen...

[J. J.]

Unless there is a chain reaction and another large bank goes down.
Let's hope that this won't happen...

There might be some banks that get hit for the same reason, but not banking as a whole.

[opebo]

Unless there is a chain reaction and another large bank goes down.
Let's hope that this won't happen...

There might be some banks that get hit for the same reason, but not banking as a whole.

Why not?

[J. J.]

Unless there is a chain reaction and another large bank goes down.
Let's hope that this won't happen...

There might be some banks that get hit for the same reason, but not banking as a whole.

Why not?

Most banks are not as invested in the subprime market.

[daboese]

I wonder what will happen today. Europe went down as well now, though not as bad. And it looks like Goldman Sachs is in trouble as well.

[MODU]

I wonder what will happen today. Europe went down as well now, though not as bad. And it looks like Goldman Sachs is in trouble as well.

After a morning sell-off, basically filling yesterdays orders and responding to changes overseas after market hours, I expect the market to stabalize and close over 11K.  A 500 point drop is an overreaction, and that typically leads to a correction the following day (assuming no surprises pop-up during trading hours).  With oil prices continuing to fall, there is enough of a positive lift to balance out any minor negative pressure.

[J. J.]

In a month, this will be a blip.

[Person Man]

I wonder what will happen today. Europe went down as well now, though not as bad. And it looks like Goldman Sachs is in trouble as well.

After a morning sell-off, basically filling yesterdays orders and responding to changes overseas after market hours, I expect the market to stabalize and close over 11K.  A 500 point drop is an overreaction, and that typically leads to a correction the following day (assuming no surprises pop-up during trading hours).  With oil prices continuing to fall, there is enough of a positive lift to balance out any minor negative pressure.

Yes, but will it be enough to get the markets back to where they were before it becomes time to sell again. Then again, it is time to buy.

[MODU]

In a month, this will be a blip.

That will probably depend on if this multi-bank stability plan that the banks are currently working on (pooling resources together to loan to struggling banks and/or buy some of their liabilities) works or not.  I think it is a smart business plan by the collective to stabalize their own sector.  However, you are going to see a hit on the insurance companies as they start paying out for all the damages in the gulf, though the individuals and companies that receive their payments will stimulate the home construction companies and local realty markets by buying homes that have been sitting in foreclosure (rather than rebuilding).

Yes, but will it be enough to get the markets back to where they were before it becomes time to sell again.

See above.

[Person Man]

Well, they can conceal the damage as much as they want, but they will still be losing money pretty badly. Then again, banks are less likely to fail. ...but if they still fail despite the plan, it will be a pretty crushing loss.

[MODU]

Well, they can conceal the damage as much as they want, but they will still be losing money pretty badly. Then again, banks are less likely to fail. ...but if they still fail despite the plan, it will be a pretty crushing loss.

Which is why you should diversify your savings into multiple FDIC insured institutions.  That way, if a bank/banks does/do fail, then you are covered. 

[J. J.]

In a month, this will be a blip.

That will probably depend on if this multi-bank stability plan that the banks are currently working on (pooling resources together to loan to struggling banks and/or buy some of their liabilities) works or not.  I think it is a smart business plan by the collective to stabalize their own sector.  However, you are going to see a hit on the insurance companies as they start paying out for all the damages in the gulf, though the individuals and companies that receive their payments will stimulate the home construction companies and local realty markets by buying homes that have been sitting in foreclosure (rather than rebuilding).

Some of that, where the damages were the largest, will be flooding and covered (if at all) by the Feds.

You might see some takeovers of banks with my [sarcasm]favorite[/sarcasm] bank, Sovereign being the most prominent.  That will be the last of the "subprime shakeout."  The one thing you will see is the concentration of greater assets in fewer firms.

Obama's speaking about it now, and it could backfire.

[Person Man]

In a month, this will be a blip.

That will probably depend on if this multi-bank stability plan that the banks are currently working on (pooling resources together to loan to struggling banks and/or buy some of their liabilities) works or not.  I think it is a smart business plan by the collective to stabalize their own sector.  However, you are going to see a hit on the insurance companies as they start paying out for all the damages in the gulf, though the individuals and companies that receive their payments will stimulate the home construction companies and local realty markets by buying homes that have been sitting in foreclosure (rather than rebuilding).

Some of that, where the damages were the largest, will be flooding and covered (if at all) by the Feds.

You might see some takeovers of banks with my [sarcasm]favorite[/sarcasm] bank, Sovereign being the most prominent.  That will be the last of the "subprime shakeout."  The one thing you will see is the concentration of greater assets in fewer firms.

Obama's speaking about it now, and it could backfire.

...and then the entire issue of competition comes up. Gee...talking economics is fun. To tell you the truth, I am not really worried about this as much as we are being greased up for the global cooldown. We will simply not have the banking capitol to provide enough loans for businesses to retool the new conditions of a China growning at 1 or 2% per annum, instead of 9 or 10% per annum. Then again, maybe the market will be too cold to react too violently to any sudden changes. 

[Small Business Owner of Any Repute]

My friend, formerly of Bear Stearns (now JP Morgan) recommends you begin heavily investing in funds placed under your mattress.

[J. J.]

In a month, this will be a blip.

That will probably depend on if this multi-bank stability plan that the banks are currently working on (pooling resources together to loan to struggling banks and/or buy some of their liabilities) works or not.  I think it is a smart business plan by the collective to stabalize their own sector.  However, you are going to see a hit on the insurance companies as they start paying out for all the damages in the gulf, though the individuals and companies that receive their payments will stimulate the home construction companies and local realty markets by buying homes that have been sitting in foreclosure (rather than rebuilding).

Some of that, where the damages were the largest, will be flooding and covered (if at all) by the Feds.

You might see some takeovers of banks with my [sarcasm]favorite[/sarcasm] bank, Sovereign being the most prominent.  That will be the last of the "subprime shakeout."  The one thing you will see is the concentration of greater assets in fewer firms.

Obama's speaking about it now, and it could backfire.

...and then the entire issue of competition comes up. Gee...talking economics is fun. To tell you the truth, I am not really worried about this as much as we are being greased up for the global cooldown. We will simply not have the banking capitol to provide enough loans for businesses to retool the new conditions of a China growning at 1 or 2% per annum, instead of 9 or 10% per annum. Then again, maybe the market will be too cold to react too violently to any sudden changes. 

The market takes care of that.  I think we do sufficient capital.

[○∙◄☻¥tπ[╪AV┼cVê└]

My friend, formerly of Bear Stearns (now JP Morgan) recommends you begin heavily investing in funds placed under your mattress.

Well that mutual fund has greatly outperformed the market during the Bush administration. However past performance does not mean future performance.

[Person Man]

In a month, this will be a blip.

That will probably depend on if this multi-bank stability plan that the banks are currently working on (pooling resources together to loan to struggling banks and/or buy some of their liabilities) works or not.  I think it is a smart business plan by the collective to stabalize their own sector.  However, you are going to see a hit on the insurance companies as they start paying out for all the damages in the gulf, though the individuals and companies that receive their payments will stimulate the home construction companies and local realty markets by buying homes that have been sitting in foreclosure (rather than rebuilding).

Some of that, where the damages were the largest, will be flooding and covered (if at all) by the Feds.

You might see some takeovers of banks with my [sarcasm]favorite[/sarcasm] bank, Sovereign being the most prominent.  That will be the last of the "subprime shakeout."  The one thing you will see is the concentration of greater assets in fewer firms.

Obama's speaking about it now, and it could backfire.

...and then the entire issue of competition comes up. Gee...talking economics is fun. To tell you the truth, I am not really worried about this as much as we are being greased up for the global cooldown. We will simply not have the banking capitol to provide enough loans for businesses to retool the new conditions of a China growning at 1 or 2% per annum, instead of 9 or 10% per annum. Then again, maybe the market will be too cold to react too violently to any sudden changes. 

The market takes care of that.  I think we do sufficient capital.

Hopefully, the collapse of the oil market will facilitate that....but OPEC seems more willing to cut production, then again, if OPEC breaks up on production disagreements, the price of oil could collapse and that could save the economy...for a while...at least. The problem at this point really isn't capital as it is credit. People will need credit to survive the global cooldown. The Housing Market will have to fully recover by 2010 for there to be sufficiently available credit.

[Person Man]

My friend, formerly of Bear Stearns (now JP Morgan) recommends you begin heavily investing in funds placed under your mattress.

Well that mutual fund has greatly outperformed the market during the Bush administration. However past performance does not mean future performance.

So, we COULD be fu cked...

[J. J.]

My friend, formerly of Bear Stearns (now JP Morgan) recommends you begin heavily investing in funds placed under your mattress.

Well that mutual fund has greatly outperformed the market during the Bush administration. However past performance does not mean future performance.

So, we COULD be fu cked...

Probably not.

[daboese]

What are the chances for AIG to explode?
How big would that hit Wall Street?