# 300 dow down is just a start



## Truthmatters (Jul 27, 2007)

http://tinyurl.com/28mf4j

This is what R rule has brought you my friends


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## Truthmatters (Jul 27, 2007)

A 300-point drop? It's just the start
With the credit markets a disaster, buyouts can't continue to drive stock prices higher. That's one reason, of many, I think we're headed for an even bigger fall.

Latest Market Update
July 27, 2007 -- 10:00 ET 
[BRIEFING.COM] Equities are still on the defensive, but barely, as a renewed wave of buying interest lifts the indices well off their recent lows. Turnarounds in the Financial and Technology sectors have been the most notable areas of improvement.


For a change, this week I'm going to delve into stock-market machinations (both on the surface and behind the scenes) because I think they suggest we have reached a critical stage in the credit-unwinding process. My focus will be on Thursday's action.

Black cat crosses bulls' path 
Before the open, stock-index futures were down about 1%-plus. Why was that important? Because in the last year or so, when we have seen an ugly session (like the one Tuesday), it's typically prompted an immediate rally -- if not the following day, then the day after that. 

However, Wednesday's rally was pretty punk. Which is why I (and the bulls) thought there'd be another attempt the next day. The fact that the futures fell out of bed pre-opening was thus an indication that something was potentially very different. 

As I checked all of my contacts in credit land, it quickly became clear to me that this was the source of the problem. One friend who watches the high-yield market said: "Credit is an unmitigated disaster this morning. Bonds down 2% to 3% across the board." In addition, the "Lord of the Dark Matter" confirmed that structured credit was really getting thumped, ditto all the leveraged indexes and the ABX credit stack. To quote him: "Mate, there is a massive margin call in structured credit and there are no marginal buyers for it."

http://tinyurl.com/28mf4j


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## lieberalism (Jul 27, 2007)

How much time do you waste making tinyurls for links that arent even that long?


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## Truthmatters (Jul 27, 2007)

How much time do you spend trying to find a way how not to answer the real intention of a post when it rocks your image of the R party?


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## Mr. P (Jul 27, 2007)

Truthmatters said:


> How much time do you spend trying to find a way how not to answer the real intention of a post when it rocks your image of the R party?



This has nothing to do with the R party. Credit is in such bad shape because they made sooooo many sub-prime loans and now it's biting them in the ass. Simply bad business.


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## BaronVonBigmeat (Jul 27, 2007)

This isn't really an indictment of the republican party; the coming economic troubles are an indictment of bad federal reserve policy, which is independent of party.


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## Nevadamedic (Jul 27, 2007)

Truthmatters said:


> A 300-point drop? It's just the start
> With the credit markets a disaster, buyouts can't continue to drive stock prices higher. That's one reason, of many, I think we're headed for an even bigger fall.
> 
> Latest Market Update
> ...



It's funny when Clinton crashed the stock market a hell of a lot worse then this you said it wasn't his fault but when it happens under President Bush you bale it on him, can we say hipocrits?


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## Vintij (Jul 27, 2007)

I think it was just a one day thing. If you look at the market its already on the rebound. Well not as a whole, but Apple is right back up, google is way up. All the imporant company's are right back up. I might even buy some shares because of all the paranoids out there selling.


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## Truthmatters (Jul 27, 2007)

It happened bercause the government refused to go after the sub prime market and its preying on the idividual home buyer.


They ignored it because it was keeping Bushs numbers up.


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## heretic (Jul 27, 2007)

Truthmatters said:
			
		

> How much time do you spend trying to find a way how not to answer the real intention of a post when it rocks your image of the R party?



I find it humorous that your image of the D party is so much better than the R party.



Truthmatters said:


> They ignored it because it was keeping Bushs numbers up.



Yup, it all dubya's fault. 



BaronVonBigmeat said:


> This isn't really an indictment of the republican party; the coming economic troubles are an indictment of bad federal reserve policy, which is independent of party.


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## Truthmatters (Jul 27, 2007)

So is the DOJ remember?


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## Truthmatters (Jul 27, 2007)

http://en.wikipedia.org/wiki/Federal_Reserve


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## Truthmatters (Jul 27, 2007)

http://en.wikipedia.org/wiki/Federal_Reserve


The Federal Reserve System is a quasi-governmental/quasi-private banking system composed of (1) the presidentially-appointed Board of Governors of the Federal Reserve System in Washington, D.C.; (2) the Federal Open Market Committee; (3) 12 regional Federal Reserve Banks located in major cities throughout the nation acting as fiscal agents for the U.S. Treasury, each with their own nine-member board of directors; (4) numerous private U.S. member banks, which subscribe to required amounts of non-transferable stock in their regional Federal Reserve Bank; and (5) various advisory councils.


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## lieberalism (Jul 27, 2007)

sniff, according to liberals, bush and cheney control the stock market. every trade is approved by them.


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## ScreamingEagle (Jul 27, 2007)

BaronVonBigmeat said:


> This isn't really an indictment of the republican party; the coming economic troubles are an indictment of bad federal reserve policy, which is independent of party.



Maybe we should return to the gold standard.


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## Truthmatters (Jul 27, 2007)

The Truth in Lending Act (TILA) of 1968 

is an example of how the government has the power to effect lending practices and prices.

We will now pay the cost of these loans with tax dollars to bail out the banks who made these idiotic loans when we could have saved ourselfs this cost by effecting their practices to keep this from happening at all.

It was the realestate market that kept the Bush economy from tanking and now we will all pay a bigger price than it should have cost us.


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## Mr.Conley (Jul 27, 2007)

ScreamingEagle said:


> Maybe we should return to the gold standard.



No


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## Truthmatters (Jul 27, 2007)

the dow is down 200+ right now


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## BaronVonBigmeat (Jul 27, 2007)

ScreamingEagle said:


> Maybe we should return to the gold standard.



Perhaps!

Of course, you don't have to be a goldbug to see the looming clusterfuck that the fed has created here.


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## manu1959 (Jul 27, 2007)

have you bothered to track stock market growth over the past 20 years.....


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## Truthmatters (Aug 18, 2010)

Yeap I was right


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## Gunny (Aug 18, 2010)

Truthmatters said:


> Yeap I was right



Still dumber'n a hitchpost, I see.


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## Charles_Main (Aug 18, 2010)

Possibly the most ignorant person on earth.


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## lizzie (Aug 18, 2010)

Truthmatters said:


> It happened bercause the government refused to go after the sub prime market and its preying on the idividual home buyer.
> 
> .


 
The government played a huge role in *forming* the subprime market.


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## william the wie (Aug 18, 2010)

The problem I have with this thread is that 300 points is pretty much of a rounding error with the Dow at this level. A correction would be 1000+ points, a bear market 2000+ points and a crash more like 2500+ points in say less than 90 days.


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## hortysir (Aug 18, 2010)

Truthmatters said:


> A 300-point drop? It's just the start
> With the credit markets a disaster, buyouts can't continue to drive stock prices higher. That's one reason, of many, I think we're headed for an even bigger fall.
> 
> Latest Market Update
> July 27, 2007 -- 10:00 ET


Which party was in the majority in 2007?


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## KissMy (Aug 18, 2010)

This was the result of Democrats driving up Oil Prices

*AND*

Democrats Fannie/Freddie Lier loan credit policy.


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## uscitizen (Aug 18, 2010)

What we are seeing is the greed for fast high risk profit.
Lack of proper regulations on the finiancial industry.
The push by govt to get the economy up at any price.
And last but the biggest factor.  Globalization and freer trade.

Both parties have been led by the corporations to head us down this path.
Both parties and the American people were too shortsighted to see what was coming.

Our finiancial experts have proven their inept failure.


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## Darkknight (Sep 1, 2010)

BaronVonBigmeat said:


> This isn't really an indictment of the republican party; the coming economic troubles are an indictment of bad federal reserve policy, which is independent of party.




End the Fed!


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## Darkknight (Sep 1, 2010)

william the wie said:


> The problem I have with this thread is that 300 points is pretty much of a rounding error with the Dow at this level. A correction would be 1000+ points, a bear market 2000+ points and a crash more like 2500+ points in say less than 90 days.



It is bound to happen, I am surprised the crash is taking so long to actually occur.


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## Darkknight (Sep 1, 2010)

BaronVonBigmeat said:


> ScreamingEagle said:
> 
> 
> > Maybe we should return to the gold standard.
> ...



At least there would be some sort of standard, instead of the Fed printing money out of thin air devaluing our currency and driving the economy into the ground!


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## California Girl (Sep 1, 2010)

Truthmatters said:


> Yeap I was right



Not only are you stupid, you are also stupid. 

On the day you use YOUR OWN research, and draw YOUR OWN conclusions, and THOSE CONCLUSIONS are accurate..... THEN you will be right. 

Until then you are just some drooling fool who thinks that agreeing with someone else somehow makes you intelligent.


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## william the wie (Sep 1, 2010)

The Fed and BOJ have seen market votes of no confidence in the last 48 hours. The big question is will IL make it through this month without declared default? If it does not and defaults then a 20% drop prior to the election will cost the Dems the senate. There are multiple states and cities in the US and many foreign countries in danger of default but technically IL has been in default for around a year but the question is when will the taking clause lawsuits force into declared default because that is close.


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## Douger (Sep 1, 2010)

It makes no difference what the numbers are unless you're a dolt allowing someone else to gamble with your money.It's all about individual stocks. The only Exception would be ETF's
Has anyone here ever visited a company they own stock in, other than your own employer ?
I sure have.


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## editec (Sep 1, 2010)

Were LBOs ever really a healthy thing for the economy?

They pumped up the stockmarket and made bankers richer than hell to be sure.. but were they_ really_ a good thing for the economy as a whole?

Let's remember that a lot of these were takeovers, and not sales that the management of the organizations themselves were happy with

So this is a serious question, and not just me editorializing.

I ask because recognize that some of you folks here understand the machinations of the markets far better than I do.

Seems to me that LBOs often ended up creating companies with enormous debt which they dealt with by selling off assets and breaking up companies.

They took going concerns that worked and cannibized them to make a quick buck.

Is that really a good thing?


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## uscitizen (Sep 1, 2010)

ScreamingEagle said:


> BaronVonBigmeat said:
> 
> 
> > This isn't really an indictment of the republican party; the coming economic troubles are an indictment of bad federal reserve policy, which is independent of party.
> ...



Sure we have about enough gold to cover 1/100th of the currency out there.


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## KissMy (Sep 1, 2010)

uscitizen said:


> ScreamingEagle said:
> 
> 
> > BaronVonBigmeat said:
> ...



There is enough gold on the planet to cover the US dollar currency at $1,247 per ounce, but not enough to cover foreign currency, derivatives, bonds, stock, unfunded mandates, debt & interest.


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## Truthmatters (Oct 27, 2010)

California Girl said:


> Truthmatters said:
> 
> 
> > Yeap I was right
> ...



So how do you feel about it now toots?


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## william the wie (Oct 28, 2010)

editec said:


> Were LBOs ever really a healthy thing for the economy?
> 
> They pumped up the stockmarket and made bankers richer than hell to be sure.. but were they_ really_ a good thing for the economy as a whole?
> 
> ...


Not often but sometimes. A lot of companies sit on cash, have no show jobs for their buddies and otherwise steal from the company's owners. Combined with all of the protections given board members by congress barbarians at the gate is sometimes the only recourse.


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