So, like, what is the next tactic to stop the market slide? Is there any 'powder' left?

Buying the Macs: Didn't work.
Bailing Out #1 70 billion: Didn't work
Big Bail Out Loss Socialization: 700 billion: Didn't work
Rate cut: Didn't work (at all)
Bush says "we're going to directly lend to businesses": Didn't work
European Bailout and Nationalization (Loss Socialization): Didn't work
WTO meeting and "Big Plan": Wow markets up!!! Oh, shit, markets down again: Didn't work.

So... what is the next "big transformation"? Anything else up their sleeves?


(edited to add "rate cut")

I heard this mentioned on CNBC after Bernanke speech today as a likely move.

I know nothing about economics, incidentally. But it seems, to my rather ignorant self, that interest rates that approach zero are not much of an encouragement to lend.

I hear the LIBOR rate should go down, but I think that will cause deflation (?). Maybe someone has the answer.

1. close the markets, and allocate govt money directly for payroll only.
2. Offer a discount rate for all failed investment groups to pay creditors.
3. allow HUD to manage all affected mortgages as flat rate govt mortgages at 2%.
4. Announce an 80% reduction in military and intel spending over the next four years.

5. reopen a far more regulated market investment and credit system.

Love your ideas, but they have about as much chance of being used in the foreseeable future as you have of attaining that office. Can you imagine the outcry (incited by no-bid contract beneficiaries) against "weakening" our defenses?

The French spent milllions of francs in the years between the wars on the most sophisticated land defenses to cover
the border with Germany. To say that it didnt work is an insult to poorly designed products that did not result in the deaths of millions.


SDI = Magineaux Line in Space.

And if anyone is convinced that ever more destabilizing destructive stand off weapons systems are the most effective,
18 scrawny geeks with box cutters brought down the World Trade Center and a sixth of the Pentagon.

1000 new Russian, Chinese, Farsi and Arabic translators would be do more for our safety than a new division of armor
and a new fighter attack wing.

10 new steel mills, 10,000 new solar, wind, and biomass electric plants, 1000 new high speed rail trains,
100 new state land grant colleges, free to students who can maintain a 2.5 GPA, 300 some Americans with healthcare.

All of these things would make America stronger, less dependent on other nations in ways that weaken us.
They are, in fact, the very things that will make us stronger against Domestic terrorists.

ADDED-
Thanks for your vote!

There are many things that COULD BE done, but anything that would really work for the American people won't be done. My question is "what do they have left that they can do to prop up the market to prevent an ongoing slide?"

A totally new world economic framework that manages to bring the excesses of global corporations under control.
A meeting that would lay the framework for a SEC without borders.
A meeting that would write down debts worldwide, and agree to a restart capitalization of nations based on their debt/GDP and other agreed upon factors.

*A MEETING THAT WOULD SET WORLD ACCOUNTING STANDARDS*

This would be a meeting where the restart switch would be hit. I have no illusions that this would also create massive dislocations, but that is where we are heading right now.
It would shorten the depression, and set us up for a more stable, far healthier world economy.


The potential downside to the collapse suggests that a bandaid or a full box of bandaids will not work.
The economy is taking a header off a 10 story building.

I am now hoping that we hit a ledge on the way down.

with their buddies in the GOP, and then we'll have apologists tell us it's good for us all.

We've already given just about everything. What's left? Are we going to give out the property Saudi Arabia owns?

they find something

to use to build up the real economy (manufacturing industry) which was the only thing that worked in the Great Depression. We're just beginning to feel the full effects of the massive ripoff. Much worse to come.

which may help. Could even give us 1000 point rally to crack above our resistance ceiling in the 9889 area. Not set in stone but possible.

Technically this volatility is not out of the ordinary after setting up a possible bottom.

8443 is a possible support area but it may go on down intraday to retest the 7882 area to see if the buyers are there or just above, maybe 8000 or so.

If the test of the bottom is successful we are moving towards setting up our new trading range between there and the 9889 level until we get more fundamental news, positive or negative.

Watch for a possible coiling (higher highs and higher lows) effect here in the chart over the next couple of days ,HOPEFULLY favoring to the upside which could indicate setting up some short term upside potential as it signifies building upside momentum off of the bottom.

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=%24indu&sid=0&o_symb=%24indu&freq=1&time=4&x=0&y=0

The market is still looking for signs of serious slow down or any guidance or vision from the individual companies themselves to see which way we are headed over the longer term. We are still in earnings season and the companies will give SOME guidance. http://biz.yahoo.com/research/earncal/today.html

The risk is still there we could move to the 5000-6000 area over the longer term if the overall economy continues to deteriorate. This is where the longer term historical depression or recession support level is for now.

That is the best I can do for now.

I heard it somewhere else...so there it is

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4244268&mesg_id=4244268