September 29, 2008 Market Crash

[bishopmarine]

i have been putting 5% into my 401k for 5 years now. now i had it pretty much divided between stocks and bonds. i think i will leave it alone, to avoid transaction fees. i plan on retiring in 24 years i will be 55 then. i think my 401k my pension and my military disability should get us by.

[jfko6]

Dow Closes Lower
Time: 4:19PM

[kman]

So the "bailout" is voted down in the House and the market crashes that day but recovers a lot the next day.

Now the Senate passes their version and the market still tumbles. Now we just need to see what'll happen tomorrow.

[aquarius]

Last July I wrote the following in another topic (about the price of oil):
"Life is going to change in the coming 100 years. In a dramatical way. If you like it or not. The final proces already has begun and it can not be reversed. We can deny this, but deep inside we know there is nothing that can substitute oil. 200 dollar for a gallon is expensive? In a few decades we will laugh about this rediculous low price! Accept it and try to adapt."

With 'dramatical' I meant revolutionary, distopian changes that come sudden and hit like hammers. Things that rather suddenly influence the lifes of billions of people in a negative manner.

In July 2007 I began to read the Silver Bear Cafe website. These guys predicted what is happening right now since many years.
This last year I used my time to get rid of my debts, to sell my stocks (and buy some gold/silver instead) and buying simple survival stuff.

In my opinion the Big Change has now started. The US is in turnmoil and with a little bit of bad luck it will not recover for many years to come, if ever.
The war in Iraq is costing each US citizen by now more than 120.000 dollar. All the money is being borrowed. Is there any person alive who really thinks this amount of money can ever be paid back?
Next in tunrmoil will be good ol' Europe. We have entangled us too much with the US economy. That bill is coming our way! Soon China and Russia will join us.

Let's hope the 700 billion will do the job. (Where is the money coming from? If it is not borrowed, it will be created by printing the money. Which will cause an enormous inflation.)

Or am I completely wrong??

[jfko6]

# Story Highlights
# State short on cash because of tight credit market, governor says
# Schwarzenegger: California's cash need is larger than some states' entire budgets
# State could be out of money by end of October, treasurer says
CNN
http://www.cnn.com/2008/POLITICS/10/03/ ... index.html

OK. Lets face it there's a real problem here now. Job losses, slow downs, economic downturns.

[bl00k]

So the house approved the bailout-bill. Oil spiked 3$ afterwards closing at 95$. US National debt is now over $10 trillion dollars, it grew almost 1 trillion dollar in 2008;
http://www.treasurydirect.gov/NP/BPDLog ... ication=np

It's unfortunate this is happening so close to the elections. Emotions will play a big part in voting, not a good thing.

But it's not just the US;
Dutch government takes over Fortis
http://edition.cnn.com/2008/BUSINESS/10 ... index.html

And ofcourse some rumors;
http://www.321gold.com/editorials/willi ... 00208.html

This from a friend in Seattle: "I was talking to my neighbor last night. He is in finance in the county government, King County (Seattle). He said there are some very secretive budget talks being held, very hush, hush. Apparently, the county has lost around $200 million of taxpayer money in toxic paper investments, with huge implications on the budget. He says he is not privy to the details, but he is taking a 10-day vacation starting today, because he has nothing to do since everything is in flux."

This from a friend in Atlanta with strong banking connections: "Reliable word that Bank of America branch managers just received a letter or memo from the USFed instructing them to perhaps be ready for a one-week universal shut-down of the banking system, including access to checking accounts, savings accounts and credit cards. Reliable word has it that BofA bank branches received a shipment of signs last week, reading "WE'RE SORRY, BUT DUE TO CIRCUMSTANCES BEYOND OUR CONTROL, WE CANNOT BE OPEN AT THIS TIME."

I'm pretty sure most people here have some stored MRE's just in case, but it might be an idea to also have some extra cash money at home. Better be safe than sorry, right?

[jfko6]

Another decline today.

[kman]

Way to go Congress! Thanks for saving us!

[Big Galloot]

I think the government made a foolish move. Risky investments are expected to yield greater returns because you must live with the possibility of the investment failing. If the government is going to rescue people who make stupid risks, why invest wisely?

Maybe I am just getting old(OK, definitely) but it seems that the US is becoming one big Katrina where people fail to take responsibility for themselves and then scream for the government to fix it all for them.

There is a point in a parents life when they have to allow a child to get burnt. You can tell them a million times to keep their hands away from the stove and they will keep doing it. Let them get burnt just once and they will stop immediately.

[jfko6]

THe situation with the economy is grave.

Some argue we should let the greedy Wall Streeters burn for causing this mess. Others prefer government intervention.

The thing seems to be pay the bill now or pay a much bigger bill later.