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ORIGINAL: Charlie P
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Wait until OB gets elected perish the thought..it will really tank
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Wow you can really shovel it, you talk about other people being a democratic plant, what are you a republican kool aid mixer?. Why not actualy talk about the subject?
They pushed through this spending bill with enough pork to clog a elephants arteries and the market continues to tank, what the heck should be done?
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Charlie P: Let's start by having you tell us what valuation the market ought to be at. At 14,000 the market was over valued. What ought the market be at? Given the disfunctional credit habits people developed that at least partly fed the growth to the 14,000 DOW-- buying homes that they couldn't afford using negative amortized mortgages and/or balloon interest mortgages, refinancing homes and taking out chunks of cash for buying toys in the same transaction, buying luxuries such as Cadillac Escalades -- what level should the market stabilize at in an economy which turns away from these now discredited credit habits (sorry, had to swing with that word play!)?
Do you know the market hasn't been this low since August 2003? Wait, the market really wasn't too bad in August 2003 -- not so bad as it was when technology tanked in early 2001. How much of the run-up from August 2003 to the 14,000 in recent memory was unnatural, hot-house economic growth fomented by these bad credit policies/practices?
I'm not beating you up, Charlie P, I am suggesting that maybe we aren't all looking at this with balance. Where is it written the market can't come down, particularly where is it written that the market can't come down when valuation is based on bad values? You bet money has come out of the stock market -- but you are talking about paper profits or paper money. Does that mean these companies are worth less than they were before? Yes, to the extent perceptions define values. But there is another angle on this, which was that the 14,000 DOW was a mirage and smoke.
The issue taken with Obama is that he is expected to increase taxes pretty substantially on businesses, and that this is feared to stiffle economic growth when it is needed most. Cry and scream and moan and groan about Wall Street, but increasing taxes on Texas Instruments, Halliburton, Apple Computer, 3-M, Borg-Warner, General Mills is going to have a deterimental influence on the economy. I'm not sure why you refer to this projection as "drinking the Republican Kool-aid."
Dow below 9000
Just more and more excuses to defend deregulation and bad tax policy.
