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*TechAdmin* · 10-07-2008, 08:34 PM

Does anyone have any theories on when the stock market will stop dramatically decreasing every day?

cannon · 10-08-2008, 05:30 PM

Cac 40 3496.89 -235.33 -6.31% | nikkei 225 9203.32 -952.58 -9.38% | ftse100 4366.69 -238.53 -5.18%

Zeek38 · 10-09-2008, 08:14 PM

Probably never. We're doooooomed.

*TechAdmin* · 10-10-2008, 12:34 AM

What a mess. Down another 700 today. I know it's not a true indicator but the credit crunch seems to be getting worse. G7 is meeting tomorrow to discuss what can be done.

groundhogsniper23 · 10-12-2008, 02:02 AM

i hate to tell you guys this cuz u probably won't believe me but its gonna get worse. its gonna be another depression. if you can take your money out of stocks or 401k get it out. i keep just enough money in the bank to pay bills. banks are closing left and right. something else you might not believe is but if any of you read the bible you'll know whats to come.

ldmaster · 10-12-2008, 06:09 AM

It will stop as soon as the bubble is deflated.

For far, far too long stock prices have not be reflective of the potential profit of ownership (stock dividends) but on how much you think you can convince the next guy to pay for it. In fact, the majority of stock out there right now does NOT pay dividends at all. The percentage of publicly held companies who regularly declare zero dividends is staggering, yet people buy the stock - because they think they can convince someone else to pay more for it.

The bubble will not burst until it hits flat, rock bottom. If a company has low stock value, and it's been STUPID (i.e. a normal company) then they borrow money for day to day operations and needs. If the company has no credit rating, they cant borrow the money they need - only those companies with positive cash flows and or large cash reserves will end up alive. And remember the 'corporate raiding' that went on in the 90's? All those ripe companies with huge retirement funds? They've been drained too.

The bible said it quite well, "neither a borrower nor a lender be". It applies to everyone. The state of Colorado (where I live) regularly borrows money against future tax revenues. I mean they do it INSTEAD of waiting for the money to come in. If they have a projected (and lets say it's exactly right) tax income of 100 million dollars, they will borrow about 84 million in anticipation of it coming in. The cost of issueing the "general revenue bonds" is about 16 million - money that goes to the bond firm that issued the bonds on behalf of the state. If the state were willing to simply spend what it GETS, then the state would have 16 million more per year to spend - but politicians want money NOW, and they're used to getting it. They're hooked on "payday loans".

And we vote for the crooks every single time, R or D or I, they all do it.

It's like the sick disease of pedophilia, statistics say they WILL commit the crimes again, they can't help themselves. Elected politicians ALWAYS fund things this way, ALWAYS. Until we pass NOT a "balanced budget" amendment, but a "you can't spend money you don't have in hand" amendment, we will fall into this trap again and again. Until our society collapses.

bkt · 10-12-2008, 02:30 PM

Quote:

Originally Posted by Dean

Does anyone have any theories on when the stock market will stop dramatically decreasing every day?

Does anyone have any theories on when the government will stop trying to fix the stuff they broke by screwing around with it?

Currency around the world is losing value. Iceland is bankrupt. The Australian dollar just crashed. Britain is nationalizing some of their banks.

What's that old Chinese curse? "May you live in interesting times."

Times are mighty interesting -- on a global scale -- about now.

ldmaster · 10-17-2008, 05:40 PM

Back in the late 80's Argentina went through a similar crash. Their government tried to fix it the same way ours is. At some point after several re-evaluations of the currency, it was decided that:

(a) comprehensive liberalization of foreign trade and capital movements,
(b) the privatization of public enterprises and the deregulation of the economy,
(c) reduction of the bureaucratic apparatus of the public sector and the reconstruction of the tax system, and
(d) the creation of a new monetary system.

Governmental cash reserves were gradually and purposefully increased (this means they didn't spend everything they took in in taxes, but reinvested some of it). Inflation plummetted.

Around the mid 90's the government thought they could do it again, and increased the money supply and regulation of the market to fund social programs (like free cosmetic surgery under their universal health plan), thereby devaluing their currency - and starting it all over again.

Now that our "democracy" has figured out that they can write blank checks to itself, it is hooked on it, like heroin. Politicians who DONT write blank checks to their constituents (ever notice how all politicians brag about bringing back MORE federal taxes to a state than the state paid?) don't get re-elected. Thus a politician who tells a population that they can get ahead by their own hard work and thrift, is swiftly drowned by those politicians who promise us free ____________ (fill in the bank) at the expense of some "evil" class, like "big" oil or "greedy" corporations. At this point with no truly principled politicians, we don't have any hope of avoiding a massive crash - even those of us who prepare will suffer, we'll just suffer LESS than others. The best advice I give, and do, to neighbors is that they pull or set aside cash from every paycheck, to prebuy things they already use in quantity and to NOT USE CREDIT IN ANY FORM. The government cannot save us from our own greed, we must realize that for ourselves.

10101 · 11-01-2008, 02:40 AM

If anyone knew the true answer they would be very wealthy.

However i will add my 2 cents

The market should stop its decline about six to nine months after the election.

coinguy · 11-01-2008, 05:16 AM

Long ago, people smarty than me said that we would see higher highs followed by lower lows, going higher and dropping father faster and faster until it all comes crashing down in a heap. If you look at the charts for the past while you will see those upward and lower spikes happening faster and faster. We are just getting to the point where it will take more to keep up the pattern.

G