UMD Libertarians

U.S. Stocks Drop Most Since Crash of 1987 on Recession Concerns

“It’s absolutely trading on fear right now and uncertainty, because nobody knows yet how bad the economy is going to get,” said

Reports from last month seem to indicate that businesses aren’t very confident in making many sales. This seems to have helped along another precipitous decline in the markets.

With a solution for the bank issue in-place, it’ll be interesting to see what’s done about the weakened economic activity, if anything.

well duh, the right course of action is just nationalizing everything

Naw bruh, free market would fix everything.

Because, clearly, that’s what we’ve had
You think that economic steaming pile of shit plan they passed is going to HELP?
I have noticed that Obama supporters are almost cheerleading this on

the only thing it will help is the increase of inflation

There is no cheering– just sort of a morbid fascination.

this is a news story, and it is very relevant. Hopefully, this is an issue where bipartisan input is welcome.

I do admit, I did not see the market rally ending so abruptly. I foresaw a decline lasting throughout the recession, but I thought that the big declines we saw last week was due to financial instability.

This I think had more to do with the thermometer in the economy yielding a bad fever. But maybe the financials aren’t in order after-all.

Let me reword and that not all Obama supporters are but it seems that many democrats see this as a chance to buy some more votes.

Naw …. it’s not like Obama supporters are relieved that the idiotic economic policies of the past Administration are finally coming to an end. Can’t possibly be that.
i know my fellow conservatives will hate me. But the right thing to do would have taken that 700 billion and increased public works projects. Build parks, schools, roads, dams, etc etc. That money will increase GDP, increase bank deposits, which will in turn increase Bank lending capital, and this whole mess goes away.

I doubt it.

A $700 billion public works bill would be subdivided into tiny pieces of pork by senators, representatives, state and local politicians. Just another black hole to throw shit in while expecting nothing in return.

This may still need to be done, but there’s no way that would’ve been mobilized quickly enough to save Citibank/BofA/JPMorgan, though.

Interesting post.

The politicians got their pork with the rest of the bill that was passed. If money were used to create jobs, we would see… i can actually calculate this

^y = 1/(marginal propensity to save) x 700
=1/.03 x 700
=33.3×700= 23 trillion dollars in GDP increase, over roughly a 5-10 year period.

Still, this is very basic keynesian theory. But it should work.
S&P will dip below 700 in the next 12 months. Dow will likely dip below 6000. This will happen without government intervention.

With government intervention it could get better or worse (seems like it will get worse with more intervention).

Any recovery in the next 10 months will basically be a dead cat bounce. You will see some big bounces as it falls.

Because we took the wrong action. Giving the banks that money was a complete waste. We dont need those banks, we need capital. We could achieve liquidity by increasing jobs, injecting that money into the market. The more money people earn, the more they deposit (lets face it, its hard to stuff 700b under the matress), but also the more they spend. The influx of deposits would have given deserving banks necessary equity. Liquidity would have resulted, loans would have been offered to further perpetuate the system. Increase in spending increases jobs, increase in jobs stimulates the market as well. Everybody profits.

wat

Demand is down. People aren’t driving.

simply that?

maybe some do, but there are some right leaning posters here that are almost excited by the prospect of some final economic day of reckoning……

I know its anecdotal, but there is a guy at my work who also fits this mold….
Shaping up to be another ugly day tomorrow.

Holy , the Nikkei is down another 11% already.
I guess this is what happens when you play with monopoly money in some banks computer.
Fun fact:

If you sacrificed the use of some of your money 10 years ago and invested it into the stock market following the Dow, you earned an equivalent of less than 1 percent [0.8%] annual profit for your trouble.

Fully-insured bank savings pay more than that.

Uhhh…we’re trading higher premarket….

Factories: Drop worst in 34 years

Manufacturing in September falls by a whopping 2.8%, according to Federal Reserve.

Hang onto your asses…..

The same that Truman did…..
Im no econ scholar, but doesnt it make more sense to havethe money trickle up..not down?

i agree it makes more sense– but you can’t let the banks fail….and they had loaned enough to foreigners that had nothing been done, they probably would have failed. Had the banks failed, everything would have been game over.

i had a discussion about this with a coworker the other day. He didn’t understand why I would favor bank bailout and not GM/Ford bailout. I don’t think he appreciated that had the banks been toast, nobody makes car-loans, and thus nobody buys cars = bye bye GM/Ford.

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