Stock Market Crash: Dow Below 8000
U.S. stocks thudded sharply lower on Wednesday to finish at more than five-years, with financial powerhouse Citigroup Inc. pummeled by its greatest one-day percentage drop as fears intensified about its fate as well as the U.S. auto industry.
“It [Citigroup] needs to be rescued, but we’re not in that business anymore. And look at the outlook that the Fed painted in its minutes of the last meeting, and we don’t get a rosy picture,” said Art Hogan, chief market strategist at Jefferies & Co.
“It’s a combination of comments from [Fed Chairman Ben] Bernanke and [Treasury Secretary Hank] Paulson that has us on pins and needles. Everything is hinging on what happens with the General Motors bailout,” said Hogan.
After climbing in and out of positive and negative turf in the early going, the major stock indexes were down decisively in afternoon trades, with the losses intensifying in the final hour.
The stock market is spiraling because people are convinced this will be long term. It helps people panic when the government acts panicky too. And because government keeps interfering with the market. Government meddling keeps this crash going, and government attempts to print money and hand it out to everyone like an ATM is making it worse. Stop interfering and the market will correct itself. No more bailouts!
Gateway Pundit thinks it is a post-election sell off, and that may play a factor, but there is more to it than that. It’s all the bailouts too.
Powerline takes a serious look.
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Posted by Jay on November 19, 2008 6:23 pm
» Filed Under 1st Amendment, Barack Obama, Economy, Fiscal Responsibility, News, Recession/Depression, Socialism
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7 Responses to “Stock Market Crash: Dow Below 8000”
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I was a week late on my prediction. Thought it would go below 8K last wednesday.
I think it is a combination of factors. One of them is the pre-Obama sell off. I doubt it would be this bad if McCain was elected, but, that is just a guess.
You have fears of deflation, and the mass drop in oil prices. Everything came at once. The Dems have been telling us how bad the economy was for 8 years. They finally got their wish. Now they get to prove they know how to govern and fix. Which will, unfortunately, fail miserably.
I agree this is a pre-Obama sell off so that when he is President, any move up is positive. Gas is $1.59 in KC today. How low can it go?
Splendiferous,
Wait until Obama’s Dow is at 5000, and gasoline is back to 4 bucks, and every job in America is heading for India, China, or other business friendly climes. Then Obama is going to tell you how your starvation, and your families suffering is GOOD for the planet and GOOD for Africa!
The good news is that plenty of Democrat voters will lose their jobs and family businesses too. Then they might say, Oh no! We threw away our lives for Hopey Changey nonsense!
Wall Street loves bailouts and throws a hissy fit when they do not get an expected one. They did it with the 700 dollar bailout and they are doing it with this one. History shows Wall Street does better when Democrats are in power.
They’ve been moaning 8 years about the shape of the economy, but they’ve created a self-fulfilling prophecy, all on their own.
I’m just sitting back, chuckling. And yeah, I was one of those looneys who rushed to the gun store. My family’s gonna need to eat.
I sent this to the Obama transition team and it will work to bailout all of us
3 From Me
Congratulations! On your election I look to the future full of hope and awe at the potential of what you can accomplish. In answering your call for all to help in restoring our country as a world leader I offer 3 Ideas toward that goal and would ask that all citizens offer their three ideas. While I think that my Ideas would greatly improve the lives of all I realize that not all will agree to them I say OK what are your three Ideas. So here are 3 from me.
? ECONOMY
I propose that every taxpayer over the age of 21 receive a debit card with $500,000 on it. The card could only be used to purchase off an approved list, A house, brand new car, college education, alternative energy equipment for the home and furnishings for the home. Our country and way of life revolve around home and family why not put the engine that drives the world’s economy (the American taxpayer) in the driver’s seat for a change. Instead of bailing out private companies let us fund our own bailout. I am not suggesting just handing out money I propose we borrow it to be paid with all the new tax money that will be coming in, we ask that the world to invest in the American taxpayer this would probably cost about 5 trillion dollars. Sound like way too much money? Well we are at almost a trillion now with the so called bailout money and our economy is still going down. Each house supports 6-10 businesses a conservative guess it is probably more plumber, electrician, landscaping, furniture store, pool maintaince, roofers, etc. What kind of money does that pump into the economy? If this was enacted you would not have to bailout any banks their inventory of foreclosed properties would disappear and they would be flush with cash and new houses couldn’t be built fast enough and thousands upon thousands of jobs will be created in the housing sector and they would be flush with cash. People would have 100% equity in their homes so if a health care emergency arises they would be able to pay their medical bills or if they had a mind to could use the equity to start a business. The car makers would not need a bailout and they would struggle to keep up with the demand for new cars (nice problem to have) and have the effect of removing a lot of older polluting vehicles off our highways, nice bonus. Also the demand for “greener” cars would have to be met by the car makers they are not going to ignore a massive market of consumers with cash. A college education would be available to all regardless of their economic or social status and with no huge loans to pay off after graduation. Our emerging alternative energy industry would get a massive shot in the arm and propel us faster towards the day when we are totally energy independent. This plan is a way to solve multiple issues facing us today and the world at large our success will ripple all over the world we do not produce every thing we use so we will be importing what we need this now helps all the economies of the world and when our loan is paid we will help do the same for other countries. What we end up with is a country full of highly educated, property owning people with no crushing debt. Wow what a concept! There will be naysayers there always is to them I say YES WE CAN!
? TAXES
I propose abolishing the income tax and replacing it with a national sales tax of say 17% (this percentage is for example only the proper figure to be determined). It has been said that this Idea would hurt the poor it will not, the poor man buys a $500 car the rich one a $50,000 car. The poor mans extra cost is $85.00 but with no income tax he would have a third more of his income and would not be hurt by this. I propose that everyone pays the tax no corporate tax breaks for example when the carmaker buys the raw steel to make the cars he pays 17% sales tax when the cars are purchased the buyer pays 17% sales tax everyone pays the tax no exceptions . No Tax write offs no need for deductions, no need to file a tax return all taxes paid at point of sale. The rich tend to save or invest their money and while it benefits them it does not benefit the economy, while a poor man spends his paycheck and the money is put back into the economy. There are those who say this would be a redistribution of wealth, what do you call giving a trillion dollars of taxpayer money to private companies like banks, auto makers, etc.. There will be companies who will say they cannot be profitable without tax breaks to them I say if your business cannot stand alone with it’s own funds then you should not be in business. It is time the business sector stood up and pulled their own weight.
? IMMIGRATION I propose setting up a secure area on the Arizona and Mexico border to be administered by U.S. and Mexican troops. The people that are here now gather up all their documentation of having lived here utility bills, rent receipts etc. and a letter from an employer willing to hire them upon their return and report to the secure area for 60 days for background checks, if they pass a background check then they get a green card and if they keep their nose clean for 20 years they get citizenship. This is not amnesty because they have actually returned to Mexico. They will now be documented and be issued taxpayer I.D. numbers so they will be paying taxes like everyone else, have access to health care and not have to live in fear. As for the round them up and deport them crowd I say there is no way to round up the estimated 12 million illegal’s in this country and if we could by the time we had them all out half would be back across the border the same day. A border fence is ridiculous; if you build a 50 foot fence they will build a 60 foot ladder. Crime is soaring among illegal’s because they have nothing to lose and someone with nothing to lose is a very dangerous person. We actually need them to do the work Americans can’t or won’t do. What ever happened to “Give us your poor, your tired, your huddled masses longing to be free…”. We are a country of immigrants we all came from somewhere else. Not all illegal’s will participate but I think most will and it will make the bad apples stand out even more and the ones who do are more likely to inform on them so they don’t make all look bad.
? In Closing I repeat again let the engine that drives the whole world economy (the American taxpayer) drive this time. I read that homeownership is at 60% in this country how much more tax dollars would be rolling in at 100%. It will be said that my plan is too simplistic that I don’t understand how the financial system works. Well to that I say we have the supposed best and brightest in Mr. Paulsen and Mr. Bernanke and look where that has gotten us. It is time for simple, at the very least how about shopping these ideas around the world because we would probably have borrow at least some of the money from other countries ask them if they would invest in USATP (United States of America Tax Payers). We can repay the money in 5 to 10 years and still have plenty of funds to take care of the day to day running of the country.
Oh Kerwin, how delightful to see a Socialist touting Wall Street. Why I remember before the Affirmative Action mortgages at FNMA tanked the financial markets, George Bush had recovered all of the wealth lost in the stock market after 9-11 and hit new highs and new record lows in unemployment. All we heard from your side was how insignificant those figures were. Cooked books! Nothing to do with Bush!! Now, all of a sudden you guys are worried about the Dow?
History shows some happy accidents of Democrat presidents inheriting the full benefit of Republican repairs. Jimmah Cahtah anyone? He almost single handedly destroyed the US economy, just as the inexperienced, foolhardy Barry is about to. The Clinton boom was the result of the Reagan tax code overhaul plus DEREGULATION of the telecom industry. Need I say those are two ideas anathema to the Demo-erSocialist party?