The Obama administration's announcement of a plan to halt foreclosures and to assist banks with bad debt did not have an impact with the investor class. Consequently the markets sank and specifically the DOW is very close to the low point of November 20, 2008. The thought now is that if specific details of the plan are released this week then there might be a small rally away from the November 20 abyss. We shall see indeed.
Companies are really struggling. Its looking like GM could be facing bankruptcy and re-organizing. This will of course add to the swelling unemployment rolls, and unemployment is by far the worst aspect of this major recession.
One thing that retirees and investors are noticing is that dividends are starting to be pinched and squeezed. We understand that there are many out there literally millions who are without work, we need to also remember that there is a huge group of people living on retirement investments and such and many of these people are getting squeezed as well.
Reuters: Investors anxious for clarity on bank plan
"My expectations are for continued extreme volatility -- I would call it manic depressive mood swings..."
"...I think the market could blow through 7,000 on the Dow and go as low as 6,000 -- and I think that could occur in the next 30 days..."
4 comments:
The House of Cards we've built out here is still tumbling down. I don't think we'll even begin to see a bottom of the mess till all the rotten crap collapses in a heap for all to see. This is what happens when you allow scammers to build something without any building or zoning codes. I saw Greenspan arguing on a show about the collapse last night, that you can't really in essence control markets with laws. He admitted greed ran rampant but in the same breathe said essentially it's the price we all pay for the wonderful creative side of so called free markets. The old fraud is still trying to rationalize what he did ( NOTHING) , as Rome burned. You could extend Greenspan's hypotheiss to all human crime. Hey, murder 's the price you pay because some people are overtly aggressive..etc. It doesn't wash Alan, sorry Prof. but your God Ayn Rand and her Objectivist world view is DEAD for the time being. Greed, isn't by any means dead but is greed really so creative? Seems to me greed is what it is and has nothing at all to do with creating anything more then a pile of $$ for the greedy people. I think this is why Bernie Madoff's so called victim's are viewed with something less then compassion. Alan is right about one thing though, in today's world economy it certainly is BUYER BEWARE out here , that's for sure!
"You could extend Greenspan's hypotheiss to all human crime. Hey, murder 's the price you pay because some people are overtly aggressive..etc. It doesn't wash Alan..." - well said. I think this is an essential point if not "the" essential point. Crime is crime. Economic violence is real violence not creative or imagined or because some people are suckers. These people think a sharp mind coupled with greed is the road to enlightenment or something. Its just greed.
It all comes under the heading of "the banality of evil." I watch these shows about the holocaust with interviews of ex-SS guards, colonels, u name it and NONE of these creatures have any remorse. Far from it, they still think what they did was just fine. I bet most of them are just sorry they lost. No remorse , no compassion no lessons learned. That's what's already happening with this collapse. The hard right is busy re-writing history to bury their own complicity. It's disgusting and chances are they'll probably get away with it.
I believe the no remorse no compassion is simply another name for sociopathic. There are many people like this, lacking any ability to reflect on the implications of their actions. You run into it everywhere. To a certain extent I think we are supposed to be trained to do this. They would say this about Bush, "he is firm in his convictions." He sticks to his guns. This is the same thing as my country love it or leave it. You pick a side and then you run with it. You take no prisoners and through hell and high water you are right as right can be.
This is supposed to be a mark of morality or maturity, when its really a mark of brain plaque leaning towards sociopath.
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