# Why the stock market goes down



## statusquobuster (Mar 5, 2009)

Most people I don't think really understand that the fundamental reason why or how the market goes down is this: BECAUSE SOME PEOPLE ARE BUYING THE FREAKIN STOCKS!!!!

Who are the people buying stocks that others want to unload?  They are people who plan on making a killing when the market goes up as it surely will ----- eventually!!!!!

These are optimists and realists, while almost everyone selling stocks are the losers.


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## wimpy77 (Mar 5, 2009)

i agree with that i think long term that market will rebound but guys like cramer want it now.


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## Toro (Mar 5, 2009)

Yeah, I agree with this.  Valuations are at levels that haven't been seen in decades.

Of course, stocks can keep going lower but I think owning stocks right here will pay off huge in the future.

The only reason why you wouldn't is because you think the American economy is permanently damaged, which is silly.


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## dilloduck (Mar 5, 2009)

Intersesting--stocks go down because people buy them ?


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## DavidS (Mar 5, 2009)

dilloduck said:


> Intersesting--stocks go down because people buy them ?





I was going to say something, but I didn't want to be rude to the n00b. I've already gotten so many red reps for doing that...


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## wimpy77 (Mar 5, 2009)

DavidS said:


> dilloduck said:
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> > Intersesting--stocks go down because people buy them ?
> ...



sometimes noobs need to be taught a lesson


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## Immanuel (Mar 5, 2009)

Basically it is that age old... first thing you learn in econ 101... supply and demand.  When more people want to sell the stock than want to buy it the price goes down.  As the sellers get more desperate they drop the asking price to a level that the next round of buyers is willing to buy at and the price falls.  Eventually... hopefully... that changes and people who want to buy it outnumber those who want to sell it so the price rises as people who want to own that stock are willing to pay more for it and offer a price that someone else is willing to sell it for.

Quite simple really.

The problems stem from trying to out guess the buyers and sellers. 

Immie


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## dilloduck (Mar 5, 2009)

Immanuel said:


> Basically it is that age old... first thing you learn in econ 101... supply and demand.  When more people want to sell the stock than want to buy it the price goes down.  As the sellers get more desperate they drop the asking price to a level that the next round of buyers is willing to buy at and the price falls.  Eventually... hopefully... that changes and people who want to buy it outnumber those who want to sell it so the price rises as people who want to own that stock are willing to pay more for it and offer a price that someone else is willing to sell it for.
> 
> Quite simple really.
> 
> ...



please inform the noob


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## xsited1 (Mar 5, 2009)

statusquobuster said:


> Most people I don't think really understand that the fundamental reason why or how the market goes down is this: BECAUSE SOME PEOPLE ARE BUYING THE FREAKIN STOCKS!!!!
> 
> Who are the people buying stocks that others want to unload?  They are people who plan on making a killing when the market goes up as it surely will ----- eventually!!!!!
> 
> These are optimists and realists, *while almost everyone selling stocks are the losers*.



I wish I had taken your advice.  I took my money out of the stock market when the DOW was around 13,000 (when the Democrats took control of Congress) and put it in bonds.  Just imagine how much money I would have made had I kept buying stocks since 2007.


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## editec (Mar 5, 2009)

statusquobuster said:


> Most people I don't think really understand that the fundamental reason why or how the market goes down is this: BECAUSE SOME PEOPLE ARE BUYING THE FREAKIN STOCKS!!!!
> 
> Who are the people buying stocks that others want to unload? They are people who plan on making a killing when the market goes up as it surely will ----- eventually!!!!!
> 
> These are optimists and realists, while almost everyone selling stocks are the losers.


 
The rich can go long.

That's how they got rich and how they get richer.


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## editec (Mar 5, 2009)

xsited1 said:


> statusquobuster said:
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> 
> > Most people I don't think really understand that the fundamental reason why or how the market goes down is this: BECAUSE SOME PEOPLE ARE BUYING THE FREAKIN STOCKS!!!!
> ...


 
Yes, you'd be poised perfectly for that dramatic comeback.

Everybody likes a comeback story, ya' know.


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## Immanuel (Mar 5, 2009)

dilloduck said:


> Immanuel said:
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> > Basically it is that age old... first thing you learn in econ 101... supply and demand.  When more people want to sell the stock than want to buy it the price goes down.  As the sellers get more desperate they drop the asking price to a level that the next round of buyers is willing to buy at and the price falls.  Eventually... hopefully... that changes and people who want to buy it outnumber those who want to sell it so the price rises as people who want to own that stock are willing to pay more for it and offer a price that someone else is willing to sell it for.
> ...



Inform me of what?  

Immie


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## dilloduck (Mar 5, 2009)

Immanuel said:


> dilloduck said:
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> > Immanuel said:
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yo Immie---how's your hammer hangin' ?


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## DavidS (Mar 5, 2009)

wimpy77 said:


> DavidS said:
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> > dilloduck said:
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You're still kind of a noob, but you're ok in my book. Not that my book is at all relevant...


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## Burp (Mar 5, 2009)

Some say that the way the stock market moves shows the faith people have in that specific business (that goes up or down).

Or course, there are things that influence people's faith.  Like, how the economy is going, what the person in charge is doing to help the economy recover.   

Or what the person in charge is doing to keep the economy from flourishing.


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## Immanuel (Mar 5, 2009)

dilloduck said:


> Immanuel said:
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You know, that has either got to be an allusion to the fantasy football team I had on another site, or I'm missing something here.  

But generally, all is well with me Dillo or it would be if I could figure out how to turn the economy around.

Immie


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## twogreen2c (Mar 5, 2009)

Toro said:


> Yeah, I agree with this.  Valuations are at levels that haven't been seen in decades.
> 
> Of course, stocks can keep going lower but I think owning stocks right here will pay off huge in the future.
> 
> *The only reason why you wouldn't is because you think the American economy is permanently damaged, which is silly.*



If Obama gets his agenda pushed threw, our economy may be permanently damaged.  The future isn't looking too good.


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## Toro (Mar 5, 2009)

twogreen2c said:


> Toro said:
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> > Yeah, I agree with this.  Valuations are at levels that haven't been seen in decades.
> ...



No it will not.  You dramatically underestimate the American people.


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## wimpy77 (Mar 5, 2009)

if you think this country won't survive then pack up and move the hell out.


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## Immanuel (Mar 6, 2009)

wimpy77 said:


> if you think this country won't survive then pack up and move the hell out.



Does being concerned about the continuing viability of this nation mean that we don't love it?  I am fearful that we cannot survive the way things are going.  I am prayerful that we will.  Only God knows how long our good credit can hold out.

Immie


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## Care4all (Mar 6, 2009)

Immanuel said:


> wimpy77 said:
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> > if you think this country won't survive then pack up and move the hell out.
> ...



I think worrying about the spending this country is doing is very concerning, beginning with ALL OF THE MONEY wall street has siphoned off of us...and it hasn't even begin to stop...AIG alone has gotten $150 billion and they just came to the obama administration for $30 billion more and again, no end in sight....

What the hell?

this company deals with alot of overseas businesses...and we are bailing them out because they are too big?

And who LET THEM GET THIS BIG?  I thought we had controls over things that are BIG like that....?

Spending over our heads, is what is behind alot of this...from pooer people, to the middle class taking out second mortgages to pay for the kid's college, healthcare, or a new car, gucci loafers. and a new Rolex, to the banks and financial institutions lending out more than they should have to anyone under the sun etc etc etc.....

ALL OVERSPENDING....spending beyond our means...

the concept of the government spending to jump start the economy makes sense to me, because every one else has clammed up and retreated in to their shells at this point....

But bailing out the banks and financial institutions?  TO THIS DEGREE....probably 9 trillion already, behind the scenes....and when all added up...?

I just do not see how all of this spending and bailouts will really help us....unless really focussed on specific things...like keeping the housing market steady and not in a freefall...

I have a sinking feeling, i read somewhere this is a $60 TRILLION dollar problem....without a recession hitting...which only will make it worse....our gvt can't possibly make a dent in something like that without bleeding us dry...?

I don't know what is right anymore....i don't think anyone can fix it by waving a wand of borrowed dollars....i think we need to spend on what is needed and not pull back on those things, but anything extra, needs to be cut out of the budget and the stimulus if it is not needed in the long run for the betterment of all.

I do think the republicans screaming gloom and doom and blaming Obama for it, are hurting the confidence of this Country that makes things worse for all of us in the long run though...

and sadly, I do think they seem to want the financial disaster, thoseRepublicans in power...in office...otherwise they would not be whining so much against Obama and come up with a Solid Plan themselves and present such to the Public....instead they are just using the opportunity to bash Obama AND to bring Obama down instead of giving us an alternative solution that truly makes sense.

I saw this happen only visa versa during the Bush Administration with the Dems, after president Bush went in to Iraq....and announce winning in May of that year on a carrier...from that point on, all bashing on the part of many Dems....

But this crisis we are in, is bigger than all of us, bigger than our government as well....

care


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## Immanuel (Mar 6, 2009)

Care4all said:


> the concept of the government spending to jump start the economy makes sense to me, because every one else has clammed up and retreated in to their shells at this point....



Spending the money in order to jump start the economy might work.  However, there is a limit to our ability to spend.  Where that limit is, I do not know.  We don't want to hit that limit.  The government has to learn to cut spending especially pork barrel spending.  Everyone has their special projects and no one is willing to cut anything at all.

Tax revenues have to go up too.  Either through a tax cut that will stimulate consumers to spend more or by raising taxes.  Two different schools of thought on the issue that no one will agree on.  One way or another tax revenue needs to go up and/or spending go down.




> I do think the republicans screaming gloom and doom and blaming Obama for it, are hurting the confidence of this Country that makes things worse for all of us in the long run though...



It is almost like a self-fulfilling prophesy.  They keep screaming and everyone panics and starts thinking about hording their cash and everything snowballs.  

I agree with you.



> and sadly, I do think they seem to want the financial disaster, thoseRepublicans in power...in office...otherwise they would not be whining so much against Obama and come up with a Solid Plan themselves and present such to the Public....instead they are just using the opportunity to bash Obama AND to bring Obama down instead of giving us an alternative solution that truly makes sense.



And Rush Limbaugh, Sean Hannity and the gang are right there to assist them in accomplishing the task.


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## dilloduck (Mar 6, 2009)

Immanuel said:


> wimpy77 said:
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> > if you think this country won't survive then pack up and move the hell out.
> ...



seriously--you think God cares about our credit ?


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## Immanuel (Mar 6, 2009)

dilloduck said:


> Immanuel said:
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> > wimpy77 said:
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Of course he does, he cares about all of us... just ask any Christian professional athlete, even college athletes, they all thank God for their wins because God's on their team.  As if God really cares who wins the championship!

Seriously though, I didn't say he cares, I said he knows how long it will last.

Immie


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## Care4all (Mar 6, 2009)

Immanuel said:


> Care4all said:
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> > the concept of the government spending to jump start the economy makes sense to me, because every one else has clammed up and retreated in to their shells at this point....
> ...



HOW unusual!

SEEMS like we are on the same page...?  

the sea has parted, the sky has opened.....a true political miracle, at hand!!!!!!  

Care


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## Terral (Mar 12, 2009)

Hi Status:



statusquobuster said:


> Most people I don't think really understand that the fundamental reason why or how the market goes down is this: BECAUSE SOME PEOPLE ARE BUYING THE FREAKIN STOCKS!!!!



The stock market is going* &#8216;down,&#8217;* because the Markets have been *wired for Implosion* by the owners of the FED (third chapter) and the *U.S. Treasury Department* under *Paulson and Bernanke* beginning *September 18, 2008* of last year (story). *The markets will IMPLODE* no matter what anybody does now, because that is what *the New World Order cronies* have been planning since before many among us were even born. The real question is: 

*Why does the stock market go up?* :0) 

All of the *professing &#8216;expert&#8217; economists* you see on the TV every day stand in front of the cameras and pretend *this current Economic Implosion* is part of *a normal reoccurring &#8216;up-and-down&#8217; cycle*, when in reality *the coming Market IMPLOSION* is actually resulting from *a carefully orchestrated PLAN*. The markets are definitely on their way DOWN, because *the fundamentals of the real U.S. Economy are BROKEN *and they *have been BROKEN* for some time by far too much *Outsourcing of JOBS* and *far too many Foreign Nationals* (legal and illegal) *&#8216;displacing&#8217; too many U.S. consumers/workers from JOBS.* The *&#8216;American Consumer Base&#8217; is being systematically destroyed* along with the *American Middle Class*, which is the reason that home prices will continue going DOWN; because in reality *there is NO housing bottom* at all. NONE. This means that nobody is taking money &#8216;out&#8217; of the stock markets to put into the failed Real Estate Market &#8216;and&#8217; fewer investment options cause investors to return to the ailing stock market that *should indeed be going DOWN* along with *the sagging Housing Market*. The only reason that stock prices go up on some of these spring days (like today) is because *the LIARS on the Television &#8216;talk up&#8217; the markets* and *day traders are buying into that STUPIDITY*. Therefore, trading stocks today has *nothing* to do with *the broken fundamentals*, but with *how well these LIES are being digested by deluded traders *throwing money after absolute stupidity.  



statusquobuster said:


> Who are the people buying stocks that others want to unload?  They are people who plan on making a killing when the market goes up as it surely will ----- eventually!!!!!



Not this time. :0) Yes. We will see *bear market rallies* creating bumps on the graphs and charts (like this) that *will eventually go DOWN*, but they have nothing to do with *improving &#8216;fundamentals&#8217;* related to the stock markets or the housing markets or anything beyond *LIARS talking up the market.* The deathblow to the stock market will become a reality when the provisions of the *TARP 2 plan* (story) are carried out.  The stock market would have imploded already, but the banks refused to implement the *first TARP plan* (story); which would have been like putting a gun to their heads and pulling the trigger. 

Think about this very carefully: If the banks take newly-printed FED dollars and buy up troubled assets (toxic assets) in *bad mortgages* where *people are underwater and have walked away*, then the banks would be putting *all of these distressed houses back onto the open market*; which would *drive down the prices of ALL the houses in the neighborhood*. In that case, the banks are lowering the value of *their combined mortgage-backed securities portfolios *&#8216;and&#8217; *the value of these refinanced houses WILL CONTINUE TO GO DOWN* &#8216;and again&#8217; *drag down the property values of ALL the houses in the neighborhood.* 

Remember that the USA is still seeing just about *10,000 foreclosures EVERY DAY* (story), even if some of those foreclosures are being pushed back &#8216;and&#8217; will only make things far worse later down the road this summer and fall. There is *no way* to stop the slide in house values in *an environment of escalating unemployment* and *far too many distressed houses entering the markets EVERY DAY*. Eventually the banks *&#8216;will&#8217; implement some form of the TARP plan* and *the bottom will literally fall out of the housing markets* and send the USA into the *Second Great Depression*. 

If anybody really thinks that the stock market can go &#8216;up&#8217; on *the &#8216;fundamentals&#8217; in this Imploding U.S. Economy*, then go ahead and join the idiots pushing up stock prices right now; because every point the markets go up is just another point that the market will eventually pass *on the way DOWN at the future Market Implosion . . . *

Watch and see,

GL,

Terral


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## editec (Mar 12, 2009)

Terral said:


> Hi Status:
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What a relief it was to read the above, Terral.

I underestimated your ability to think logically, likely because of your previous posts about religion.

I really must try NOT to jump to conclusions about people based on one aspect of their belief systems.

Nice post.


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## Toro (Mar 12, 2009)

editec said:


> Terral said:
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No its not.  Its ridiculous.

I was heavily shorting stocks for two years before covering in October.  And though I think we may go lower after this bounce since there are still serious problems in the economy, to say that this was somehow deliberately orchestrated by anyone is absolutely silly.


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## wimpy77 (Mar 12, 2009)

Toro said:


> editec said:
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this guy is conspiracy theory idiot


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