October 6, 2008 5:55PM
Fear Feeding Frenzy
By Cheryl Casone
-
Share:
That sums it up today. The Dow dove 800 points, and then closed down below 10K. This is a mess. You can’t escape the feeling of fear, the feeling of distrust, and the feeling of loss. Europe really smacked us down, and I don’t believe we would have had the day we did without that influence.
They need to figure out what they are doing over there. I understand their economy is possibly heading for a recession (and some say it is there.) Why don’t they all lock themselves in a room and come to some agreement. For the name “European Union” they have not looked very unified these last three days. I understand the banking problems are global, but the United States cannot be the only forward thinking nation that realizes we have to deal with our issues.
One tough note to consider as we get into earnings. With Europe melting down/slowing down, there is not going to be as much of a demand for US goods. I hate to say this, but we are looking at more job losses.
Neil Cavuto likes Cannoli’s…..I’m a cupcake gal myself. Might go get one after this ridiculous day.
CC
-
Share:
It’s so over. The mother of all bank runs is underway right now as I type this. Seriously folks, secure rural real estate now. Load up on guns, ammunition, hard assets, survival gear, books on home steading for those who have no idea how to live off the land, and get out of dollars. Paper is worthless. Trade it for real stuff now. Don’t be a fool. This is the end of fiat currency.
http://www.rgemonitor.com/roubini-monitor/253907/the_fed_keeps_on_wasting_time_while_the_mother_of_all_bank_runs_is_underway
CC:
Do you still feel the bailout package was the thing to do? I am amazed
That so many of ‘the smartest people in the room’ endorsed that nonsense.
Cody was one of the few, if not the only one, who opposed that bailout package from the start. He gets an ‘A’ while the rest of you get much lower grades.
Forward thinking??? Come on. We have been lied to by the people in charge of this mess since the beginning. How many times has one them said “the worst is behind us” recovery is just around the corner. We are witnessing the largest bank robbery in the history of the world and it is the bankers pulling it off. If we were forward thinking the federal reserve would have been disbanded shortly after its creation.
Justin, if your EOTW scenario is correct, then it’s a bit late to be looking for “rural real estate” don’t you think? It’s all already owned by someone.
Here’s a little survival advice for you. Stay out of my county.
Fear can be good! It forces us to think harder about our actions and inaction. Many of these CEO’s have some beautiful paper credentials but in reality they really only care about their personal bottom line. Truly the old American grit brought this country through two world wars, the great depression, and a time of seemingly endless prosperity. What we are experiencing is a lack of leadership in its purest form. Honest hard working Americans dig deep to find strength when things are tough. They yell foul when things are wrong. Strong leadership knows that in order for a large corporation, small business, or even a government to run well, produce quality, and ultimately prosper it requires the most expensive resource. Human capital should be developed, and paid well in order for any business to prosper. Too often it is cut, as it is the most expensive and businesses find that they can no longer produce the quality demanded by the consumer. Stock values fall, businesses fail, folk’s loose jobs, less money in the system and the cycle begins. Bring back good old fashion values, create quality products, induce pride in ownership, and provide a value. Then we will see recovery, prosperity, and world respect.
Interesting line of thought !
Now it’s Europe’s fault that the stock market in the US is nosediving !
And this despite all the ‘forward thinking’ of the US.
Tell me if I missed something :
(1) The financial breakdown was caused by ‘predatory lending practices’ caused by a cronic lack of regulation and oversight in the US, combined with the legendary tendancy of US citizens to live on credit(Europe has absolutely nothing to do with this). I assume this falls under the category ‘forward thinking’ ??
The underlying mortgages were leveraged multiple times through ‘innovative’ financial instruments, creating a huge financial bubble. What we are witnessing now is a dramatic deleveraging effect.
(2) The financial breakdown in the US quickly ’spilled’ over to other regions, particulary Europe because of the international nature of the global banking system.
(3) Examples from quick and decisive actions in Europe are the combined and succesfull efforts of the Belgian, Dutch and French governments to solve the liquidity issues of the Belgian FORTIS and DEXIA bank (the problems at DEXIA were caused by FSA, a US daughter of DEXIA).
I don’t consider your remarks to be serious financial reporting, but cheap ‘Europe bashing’.
Johannes
Belgium
“Forward thinkers”, that’s a good one!! lol
a free market bailed out by the Gov. is putting your thumb on the scale
in my opinion
cherrypicker
Hey Jim,
Maybe if you wouldn’t be like all the other rats in this country and listened to piped piper, you wouldn’t have been lied to. I get weary of this victim mentality that everyone plays who have been “lied” to. Get your own financial house in order (get completely out of debt and have some savings) and then you won’t have to worry about being lied. America –> take care of yourself and quit acting like lemmings
The market fear has created uncertainty in the presidenta election too. If traders were looking at Wednesday night debate for conficence the dull debate would’ve been the wrong place.
Now the real hard question: what is feeding the fear in the global marketplace? On CNBC one trader that on the Chicago Exchange I listen too is Ben Lichenstien. In fact u should try to have him on Fox Business from time to time too. As a trader he explained the Squawk Box crew that’s he is going to try to buy a car tonight just to see how serious the credit crunch is really is. But are a number of factors feeding the global market fear factor? Well the Aussie Market has held up rather well thus far.
No matter how the fed financial sector trys to get liquidity back in the market its own intervention has compounded the problem. Compounding a problem only makes its worth in the long run.