Welcome to BLOODY MONDAY

If the US Markets follow the rest of the world, today will be a blood bath.

It is bad for the country. It is bad for workers and american families. It is bad for the world. We're all connected and de-regulation created the CORPORATE MONSTERS who are savaging the world economies and the GOP created the TPARTY PATRIOTS to weaken govt and make it too weak to resist the onslaught of international dollars into american territories. Iowa is about to sell over 50,000 acres to CHINA to establish a free trade zone. In this proposed deal, the CHINESE (govt company) builds warehouses, factories and homes occupied by CHINESE native workers and NO TAXES( not income, not corporate, not sales and not import) TO SUPPORT US economy. There is trouble. THE TPARTY dismissed the deficit battle as meaningless. It will cost taxpayers billions of dollars. The TPARTY groupies left on vacation while the FAA had to furlough 4,000 workers and another 90,000 construction workers were idled. That inaction cost taxpayers $30 mn a week, or $50 mn in uncollected tax revenues.

I hope the poster you responded to is correct, though, where it will be somewhat of a bad day, and not a disaster. It all depends how much people will panic and how many stocks are sold off in the hysteria.

Unfounded hope in the face of almost certain calamity!

Sadly, I don't have the same feeling.

Dow -634.76

NASDAQ -174.72

S&P 500 -79.92 (-6.66%)

I don't know how I would have coped if it had gotten all bloody and stuff.

:evilgrin:

Not too bad for a blood bath.

Thank you.
BHN:smoke:

up panic and march people off of the cliff. Everyone who joins in this type of thing becomes part of the problem. Another manufactured crisis to further destabilize the economy.

And I had nothing to do with it, I was at work all day doing what I do every day.

;)

Here's the last paragraphs.
The last three big drops in the S&P are circled on the chart. All of them occurred when the Equity Risk Premium was negative - that is, when Treasuries offered more yield than stocks. When a safe asset yields more than stocks, investors have to clap their hands and say "I believe in earnings" in order to hold stocks. But we have never had stock market crash when stocks earned nearly three times the Treasury bond yield on a current basis.

The US government won't go bankrupt. China won't sell its Treasuries (who would buy them?). The world's Asian epicenter of economic growth won't roll over and die. Italy's $1.4 trillion debt might be restructured, Europe's banks might go under the auction hammer, and today's Europeans might postpone their retirement for 10 or 15 years - but that won't change the grand scheme of the world economy. If Italy were the problem, we wouldn't see the sharp rise in the euro that occurred in early Asian trading.

The bubble that has popped here is not American government debt, but the overstretched and overpromised hedge fund industry. It's impossible to tell how long the liquidation will continue. But the stock market today does not run off fumes as in the dot-com days of the 1990s, nor off the phony profits of ultra-levered financial companies as in the 2000s. Corporate America is flush with cash, financially sound, and making better money than ever before.

For that reason, I consider this a liquidity event like 1987 rather than a true crisis like 2008 (with a $6 trillion shock to household balance sheets and the evaporation of bank equity). It's not the end of the world. It's just the end of the hedge fund industry.

here's the whole article.http://www.atimes.com/atimes/Global_Economy/MH09Dj02.html
here's the DU discussion
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x89259