And I'm right, it is a bloodbath. Dow down at least 500, now below 10,000.

Good God, I didn't think I'd see it below 10,000 again.

S&P is also getting dangerously close to falling below 1,000, already losing 5.3% on the day.

Well it's a damn good thing we just threw away a trillion dollars to bail out the economy. Without the bailout, the economy wouldn't be doing so well right now....

Part of it is the banks wishing to "tough it out" rather than accept federal help because of the one big stipulation in the bailout package: no golden parachutes. I expect the banks to give in eventually.

It could be a bloodbath tomorrow. Nikkei and Hang Seng currently down 4.7 and 3.5% respectively.

 

I was about to call you a prophet. Looks like another Black Monday.

It could be a bloodbath tomorrow. Nikkei and Hang Seng currently down 4.7 and 3.5% respectively.

 

I was about to call you a prophet. Looks like another Black Monday.

I just hope if that's the case, it isn't followed by a massive bank run. GD V2 may be here sooner than expected

It could be a bloodbath tomorrow. Nikkei and Hang Seng currently down 4.7 and 3.5% respectively.

 

I was about to call you a prophet. Looks like another Black Monday.

I just hope if that's the case, it isn't followed by a massive bank run. GD V2 may be here sooner than expected

 

while I think we are in for a prolonged recession , times are different the FDIC did not exist back in the late 1920's there really is no reason to rush to the bank most Americans have less than 250k ...it will be alright

If you get the chance, try to watch Glenn Beck at 7PM eastern time CNN tonight; Peter Schhiff will be the guest, and he should have some valuable insight. Remember, he is the guy who absolutely nailed this, called it years ago and people laughed at him.

 

Foxnews looking like jackasses:

If you get the chance, try to watch Glenn Beck at 7PM eastern time CNN tonight; Peter Schhiff will be the guest, and he should have some valuable insight. Remember, he is the guy who absolutely nailed this, called it years ago and people laughed at him.

 

Foxnews looking like jackasses:

 

 

 

I thought Nouriel Roubini was the one who nailed it.

Yes, the presence of the FDIC makes a big difference.

 

After reading more about the crisis recently, it seems like one of the many consistent recommendations is for the Fed to raise the reserve requirements of banks, so that they will be able to cover their debts and at least reassure people that they aren't going under.

 

I am at least glad that my main bank (Bank of America) seems to be doing pretty well for now. Hopefully it stays that way.

If you get the chance, try to watch Glenn Beck at 7PM eastern time CNN tonight; Peter Schhiff will be the guest, and he should have some valuable insight. Remember, he is the guy who absolutely nailed this, called it years ago and people laughed at him.

 

I watched some of it and for the most part he was good but I think he loses credibility when he predicts the price of gold will pass the Dow.

If that isn't enough to make your head hurt...

That was almost sickening to watch.

yep

Yes, the presence of the FDIC makes a big difference.

 

After reading more about the crisis recently, it seems like one of the many consistent recommendations is for the Fed to raise the reserve requirements of banks, so that they will be able to cover their debts and at least reassure people that they aren't going under.

 

I am at least glad that my main bank (Bank of America) seems to be doing pretty well for now. Hopefully it stays that way.

Unfortunately, hidden within the FDIC provision in the rescue bill is the following :

.

"SEC. 202. INCREASED FLEXIBILITY FOR THE FEDERAL RESERVE BOARD TO ESTABLISH RESERVE REQUIREMENTS.

Section 19(b)(2)(A) of the Federal Reserve Act (12 U.S.C. 461(b)(2)(A)) is amended--

(1) in clause (i), by striking `the ratio of 3 per centum' and inserting `a ratio of not greater than 3 percent (and which may be zero)'; and

(2) in clause (ii), by striking `and not less than 8 per centum,' and inserting `(and which may be zero),'."

..

The idea of this, as I see it, is to give the banks a cushion against a bank run by being able to pull all their reserves if necessary. IMO....That's not a bad idea, in an emergency situation as we have now. I also like the ability of the FED to pay interest on excess reserves(what is not said, this now means anything above zero apparently), which Bernarke referenced today as a good thing. I agree, it will help to add capital to the banks. I don't like that bit about the reserves being allowed to be at zero long-term. Short-term emergency, ok, but scary. Long-term, and the question now is how long is the long in long-term, you're right about raising reserve requirements being a good sound fiscal policy.

Nikkei and Hang Seng currently crashing again. Expect a third straight bloodbath tomorrow.

Two more things：

1. The Nikkei fell nearly 8%, almost 10% at one point. I don‘t know when their breaker steps in.

2. For the first time in what seems like forever, the dollar is worth less than 100 yen.

Two more things：

1。 The Nikkei fell nearly 8%， almost 10% at one point。 I don‘t know when their breaker steps in。

2. For the first time in what seems like forever， the dollar is worth less than 100 yen。

 

Wouldn't shock me to see sub 9000 tomorrow on the DOW. In fact I think I'd be surprised if we didn't.

Two more things：

1。 The Nikkei fell nearly 8%， almost 10% at one point。 I don?t know when their breaker steps in。

2. For the first time in what seems like forever， the dollar is worth less than 100 yen。

 

Wouldn't shock me to see sub 9000 tomorrow on the DOW. In fact I think I'd be surprised if we didn't.

Not good. :banghead

Two more things：

1。 The Nikkei fell nearly 8%， almost 10% at one point。 I don‘t know when their breaker steps in。

2. For the first time in what seems like forever， the dollar is worth less than 100 yen。

 

Wouldn't shock me to see sub 9000 tomorrow on the DOW. In fact I think I'd be surprised if we didn't.

 

 

Well it took an extra day as yesterday the fed fired one of their last desperation bullets by lowering interest rates, and that helped the markets - we only went down 150. Today though....un'freakin'believable. We finished down 600 points and the NASDAQ is now in the 8000s. f*** it, let's just wipe out 10 years of stock market activity and start over. That's where we sit today, exactly where we did ten years ago.

 

As far as the next bullet? I think we should be hearing about us getting checks in the mail any day now as an emergency 'stimulus' package. YAY inflation! At least oil is down below 85 dollars a barrel, but gasoline is still about 50 cents higher than it was when oil was last at 90 bucks a barrel. Not sure I get that one.

 

http://finance.yahoo.com/echarts?s=^GSPC#c...ource=undefined

It's like there's no bottom. The Dow's book value is about 8500 (at least that's what a guy on TV said last week). I guess that may be the bottom.

Two more things：

1。 The Nikkei fell nearly 8%， almost 10% at one point。 I don?t know when their breaker steps in。

2. For the first time in what seems like forever， the dollar is worth less than 100 yen。

 

Wouldn't shock me to see sub 9000 tomorrow on the DOW. In fact I think I'd be surprised if we didn't.

 

 

Well it took an extra day as yesterday the fed fired one of their last desperation bullets by lowering interest rates, and that helped the markets - we only went down 150. Today though....un'freakin'believable. We finished down 600 points and the NASDAQ is now in the 8000s. f*** it, let's just wipe out 10 years of stock market activity and start over. That's where we sit today, exactly where we did ten years ago.

 

As far as the next bullet? I think we should be hearing about us getting checks in the mail any day now as an emergency 'stimulus' package. YAY inflation! At least oil is down below 85 dollars a barrel, but gasoline is still about 50 cents higher than it was when oil was last at 90 bucks a barrel. Not sure I get that one.

 

http://finance.yahoo.com/echarts?s=^GSPC#c...ource=undefined

 

With the credit contraction we're seeing, more than likely we're suffering from deflation now. Of course, just over a month ago we had fears of serious inflation. Now it's the opposite, at least in the short-term. This is probably the wildest economic ride we've been in since the Great Depression, or perhaps even earlier.

 

Crazy times.

 

What will be the bottom of the DOW? Could it go down much further?

Two more things：

1。 The Nikkei fell nearly 8%， almost 10% at one point。 I don't know when their breaker steps in。

2. For the first time in what seems like forever， the dollar is worth less than 100 yen。

 

Wouldn't shock me to see sub 9000 tomorrow on the DOW. In fact I think I'd be surprised if we didn't.

 

 

Well it took an extra day as yesterday the fed fired one of their last desperation bullets by lowering interest rates, and that helped the markets - we only went down 150. Today though....un'freakin'believable. We finished down 600 points and the NASDAQ is now in the 8000s. f*** it, let's just wipe out 10 years of stock market activity and start over. That's where we sit today, exactly where we did ten years ago.

 

As far as the next bullet? I think we should be hearing about us getting checks in the mail any day now as an emergency 'stimulus' package. YAY inflation! At least oil is down below 85 dollars a barrel, but gasoline is still about 50 cents higher than it was when oil was last at 90 bucks a barrel. Not sure I get that one.

 

http://finance.yahoo.com/echarts?s=^GSPC#c...ource=undefined

 

With the credit contraction we're seeing, more than likely we're suffering from deflation now. Of course, just over a month ago we had fears of serious inflation. Now it's the opposite, at least in the short-term. This is probably the wildest economic ride we've been in since the Great Depression, or perhaps even earlier.

 

Crazy times.

 

What will be the bottom of the DOW? Could it go down much further?

 

agreed on the deflation...something I didn't anticipated was a Global economic collapse. I do believe that the DOW will go lower, we are seeing selling on any rally attempt...200 points in the dow are evaporated in a matter of minutes when the computer programs start hitting. I can't say how low we can go, in the GD the DOw sold off 80%

We probably caused the global economic collapse, thanks to our economy being tied into the rest of the world. It's certainly hurting the Asian markets severely.