Stock Markets Exposed

what is with the economy ? the govmnt bailed out the stock market , no money to loan , foreclosures alllover?

lions and tigers and bears oh my !! is it going to be tough for all of us ?? someone loan me a dime ? construction supply business ?? up or down .........no money to lend no construction?

Public Comments

1. Housing sectors down financial sectors down Retail sectors down automotive sectors next then next is a recession how deep and how long is any ones guess Year end Dow close 12300 or lower
2. it is mostly because of mortgages. i mean who did not see this coming. houses where not meant to be flipped every 6 months for a 50% gain. it was all hype and greed. now it is time to pay the bill on it. as a whole the economy is doing fine. unemployment is at 4.6%. most company earnings are coming in pretty good. you just got to wait out the mortgage mess right now that is all. shoot i been buying stocks. i bought 200 shares of AMTY, 300 shares of AMGI this morning.
3. This may not have ever occurred to you, but bear with me on this. Have you ever put on a sweater and seen a loose thread and pulled on it? This used to be a gag in many movies. You pull on the thread and the whole sweater comes unraveled. Think of the mortgage defaults as that loose thread and the economy as the sweater. It is now unraveling as the thread has been pulled.
4. In the case of last Friday’s "injection" the Fed did something a little unusual. Ordinarily the bonds it offers to buy or sell are good old U.S. Treasuries; the Fed has lots of them lying around. But because the current breakdown in the credit markets is caused by bonds backed by subprime mortgages, those are the bonds the Fed specifically went shopping for (some $38 billion worth, to be exact). Until the Fed stepped in, there were virtually no buyers for these things, because investors have all but given up trying to figure out what — if anything — they’re worth. Until it's clear how many more mortgage holders are going to default on their loans, it hard to know where things will shake out. But, based on recent sales, it turns out these bonds may be worth as little as a third of what they were supposed to be worth. Setting interest rates is the most visible and important tool because it essentially sets the “wholesale” cost of money. If you make money cheaper, it tends to move more quickly through the system. So if the economy is sluggish, a rate cut perks things up. If the economy is strong, raising rates is supposed to prevent the economy from picking up too much speed. Under those circumstances, too much money in the system feeds inflation. Contrary to popular notion, printing physical reserve notes (currency) isn’t the most important mechanism. (Thanks, anyway, to those readers who kindly remind us that the Fed's secret manipulation of illegitimate, 'fiat' currency is root cause of the world's economic and financial ills.) Most of the ‘money’ that flows through the global financial markets is actually electronic data moving from one account to another. Until the Fed stepped in, there were virtually no buyers for these things, because investors have all but given up trying to figure out what — if anything — they’re worth. Until it's clear how many more mortgage holders are going to default on their loans, it hard to know where things will shake out. But, based on recent sales, it turns out these bonds may be worth as little as a third of what they were supposed to be worth. Hope this answers your question
5. next resistance on the downside for the Dow is 12,700. It appears that the Federal Reserve, headed by chairman Ben Bernanke, is content on fighting inflation to the point where it is willing to allow the country to go into a recession, to do so. These are supposed to be some of the greatest economists in the world, but it amazes me how they still don't realize that oil/energy prices skyrocketing are NOT because of inflation, but rather supply and demand, in particular increasing demand from booming economies, such as China. The last few weeks have shown some big outflows of money coming out of mutual funds and hedge funds and without capital, fund managers have little cash to buy securities with. Appartently there was a bit of a crisis when stocks started to plummet, so the feds put several billion dollars into the banking system, which helped stocks rebound a bit. The feds printed $38 billion and injected it into the markets, ... not a good thing, just printing money as a quick band-aid. i don't know for sure. but something tells me that it has to do with Bush making the US bankrupcy laws tougher, i believe somehow, but i don't know exactly how, the root very well could be traced to this. Since Bush did this in October 2005, no doubt the credit card companies have benefited big time; piling on huge cash by charging the poorest people the most outrageous rates, some in excess of 30%; for example Master Card came public in May '06 and went from 40 to 175; about a 330% gain in a year or so, hard to find any stock on the NYSE that had such an enormous gain in such a short period of time: http://finance.yahoo.com/q/bc?s=MA&t=2y "As we digest the ramifications of eminent domain, understand the motivation of the Bush era bankruptcy laws and accept that our social security and pension programs are inherently flawed, the growing societal chasm has become increasingly apparent. Almost 40% of all U.S. wealth is in the hands of the top 1% of the population, compared to 13% 25 years ago. Further, the top 0.25% of the population owns more wealth than the other 99.75% combined. As this dichotomy manifests, the implications for consumer spending, real-estate investment and long-term savings will be profoundly impacted." - (MarketWatch). {endquote}