The Conservative Cave
Current Events => Breaking News => Topic started by: Wretched Excess on September 19, 2008, 06:13:57 PM
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while I am certainly not thrilled by the fact that government, much less the central government, is in the mortgage
and insurance business, let's say it together . . . .
GEORGE BUSH FIXED IT
put THAT in your teleprompter, Barack.
Stocks surge as Feds act
Wall Street rallies as the government moves to stem the financial market crisis. The Dow jumps almost 780 points in two sessions - the best run since 2000.
NEW YORK (CNNMoney.com) -- Stocks rallied Friday, with the Dow rising 369 points, as the government's plan to help rescue banks from toxic mortgage debt soothed investors at the end of a gut-churning week on Wall Street.
Treasury prices plunged and gold prices tumbled as investors bailed out of safe-haven plays and poured money into equities, reversing the flight-to-safety trend of earlier in the week. Oil rallied more than $6 a barrel. The dollar jumped nearly 2% versus the yen, but fell versus the euro.
The Dow Jones industrial average (INDU) added nearly 369 points, or 3.3%.
Including Thursday's big rally, the Dow's two-session advance was 779 points, the biggest since March 2000, according to Dow Jones. On a percentage basis, the two-session advance of 7.3% was the biggest since October 2002.
The Standard & Poor's 500 (SPX) index jumped 4%. The Nasdaq composite (COMP) gained 3.4%.
More (http://money.cnn.com/2008/09/19/markets/markets_newyork2/index.htm?postversion=2008091917)
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All in financials...........................the DOW is still hurting
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Im not going to say that he "Fixed It" - A tourniquet was applied, but the limb is still very much missing.
I will also say this was probably the best course of action, no matter how much I hate it.
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My take on it...
Everything in the financial sector had a possibly huge liability in the mortgage-backed securities. The government's move today just relieved the majority of that liability, so the financials went back to where they otherwise would be (without the MBS). They were down; they went up.
Give it time to wash out. This will ultimately cost us taxpayers dearly, but it beats the hell out of just standing there and watching the market crash.
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My take on it...
Everything in the financial sector had a possibly huge liability in the mortgage-backed securities. The government's move today just relieved the majority of that liability, so the financials went back to where they otherwise would be (without the MBS). They were down; they went up.
Give it time to wash out. This will ultimately cost us taxpayers dearly, but it beats the hell out of just standing there and watching the market crash.
what is the quote from the wealth of nations about capital flowing into unproductive channels, and then followed by times of dearth?
+10 if you find it :-)
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So it dropped 500 points (and every media chowderhead caterwauled "We're doooooomed!!!"), but then bounced back over 400 points one day and almost 400 points the next?
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So it dropped 500 points (and every media chowderhead caterwauled "We're doooooomed!!!"), but then bounced back over 400 points one day and almost 400 points the next?
Basically and the world did not go boom.
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Watched Obama's speech today. He pointed out the 500 drop on Monday. Didn't even mentiont that it recovered 400 of those points the very next day. :whatever:
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Watched Obama's speech today. He pointed out the 500 drop on Monday. Didn't even mentiont that it recovered 400 of those points the very next day. :whatever:
Well, why would he go and do a silly thing like tell the whole story? Democrats thrive only on misconceptions, half-truths and outright lies. The whole truth and all the facts to them is like sunlight to a vampire.
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So it dropped 500 points (and every media chowderhead caterwauled "We're doooooomed!!!"), but then bounced back over 400 points one day and almost 400 points the next?
Now they can caterwaul about the Greedy SOB's that made money of the market action.
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If Dow is over 10.500 on election day McCain/Palin will win ! :cheersmate:
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I don't think we have hit bottom in the storck market yet. There are many credit problems out there other than the mortgage mess like auto loans and credit cards. People need to quit buying things that they want but don't need and start saving for a rainy day.
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Watched Obama's speech today. He pointed out the 500 drop on Monday. Didn't even mentiont that it recovered 400 of those points the very next day. :whatever:
Well, why would he go and do a silly thing like tell the whole story? Democrats thrive only on misconceptions, half-truths and outright lies. The whole truth and all the facts to them is like sunlight to a vampire.
Speaking of half-truths, I'm not sure if anyone else saw it, but there was this big "interuption" by a group calls "Blacks against Obama".
I swear the whole thing was staged. We all have seen how stuttery Obama gets when he gets off his cue cards. Yet when this went on, he maintained his composure, completely as if he was expecting it. He "allowed" them to keep protesting, but even when security came to escort the group out, they went way to easily. No resistance, no words, nothing. Security waved their hands, and they walked out of the stadium.
I'd put a sizable amount of cash down that the event was preplanned by the Obama campaign to help make him look a little more poised in unexpected situations.
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what is the quote from the wealth of nations about capital flowing into unproductive channels, and then followed by times of dearth?
+10 if you find it :-)
That's a thick book, read a loooong time ago. I may just pass on that one.
I don't think we have hit bottom in the storck market yet. There are many credit problems out there other than the mortgage mess like auto loans and credit cards. People need to quit buying things that they want but don't need and start saving for a rainy day.
True, but the credit and car folks didn't go and loosen up the purse strings the way FNMA did... There are definitely some idiots out there really upside-down on an SUV, or otherwise maxed out on credit, but they're not the looming disaster that a 10%+ foreclosure rate would be. I completely agree that Americans need to learn to save and invest instead of buying on credit.
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True, but the credit and car folks didn't go and loosen up the purse strings the way FNMA did... There are definitely some idiots out there really upside-down on an SUV, or otherwise maxed out on credit, but they're not the looming disaster that a 10%+ foreclosure rate would be. I completely agree that Americans need to learn to save and invest instead of buying on credit.
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I heard that 25% of people that have bought new cars were upside down on their loan when the trade in was factored in. Owing more than the car is worth before you drive it off the lot is insane.
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I heard that 25% of people that have bought new cars were upside down on their loan when the trade in was factored in. Owing more than the car is worth before you drive it off the lot is insane.
Yeah, but if you look at it as "this car is worth more to me than the money" (which is, after all, why you bought the car in the first place), then it's fine. A lot of contractors and ranchers get upside down really quick, but they don't care; they're going to drive the wheels off it. My wife is upside down on her new VW station wagon, but we're planning on keeping it for well over 100K miles.
But yeah, there are a lot of folks new-car-ing themselves into the poor house. You can usually identify them by the 22" spinners. :loser:
If you want to go the "new car every few years" route, I've heard that it's better to lease your cars, and put the money you save into your house.
Woody
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My take on it...
Everything in the financial sector had a possibly huge liability in the mortgage-backed securities. The government's move today just relieved the majority of that liability, so the financials went back to where they otherwise would be (without the MBS). They were down; they went up.
Give it time to wash out. This will ultimately cost us taxpayers dearly, but it beats the hell out of just standing there and watching the market crash.
This bailout is different. We are buying the paper as long term investments. The difference is that as acountry, the US can wait for those investments to mature and ride the rocky road until they do. Private institutions can't.
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I heard that 25% of people that have bought new cars were upside down on their loan when the trade in was factored in. Owing more than the car is worth before you drive it off the lot is insane.
Yeah, but if you look at it as "this car is worth more to me than the money" (which is, after all, why you bought the car in the first place), then it's fine. A lot of contractors and ranchers get upside down really quick, but they don't care; they're going to drive the wheels off it. My wife is upside down on her new VW station wagon, but we're planning on keeping it for well over 100K miles.
But yeah, there are a lot of folks new-car-ing themselves into the poor house. You can usually identify them by the 22" spinners. :loser:
If you want to go the "new car every few years" route, I've heard that it's better to lease your cars, and put the money you save into your house.
Woody
I own both of my cars 100% and tghey are both a little over 6 years old. They have respectively 10,000 and 13,000 miles on them and look and drive as if they just got off the show room. And I did exactly that -- each time I paid off a car, I started paying into the mortgage. My 15 year mortgage will be paid off 2 years from now, after just 11 years.
No matter how bad the so-called "housing crisis" gets, that investment will pay off for me.
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I heard that 25% of people that have bought new cars were upside down on their loan when the trade in was factored in. Owing more than the car is worth before you drive it off the lot is insane.
Yeah, but if you look at it as "this car is worth more to me than the money" (which is, after all, why you bought the car in the first place), then it's fine. A lot of contractors and ranchers get upside down really quick, but they don't care; they're going to drive the wheels off it. My wife is upside down on her new VW station wagon, but we're planning on keeping it for well over 100K miles.
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Woody
What happens if you wreck it within the first 3 or 4 years and don't have gap insurance? You will be further in debt (upsided down) on the next new one. Plus, your car note is very high when you are in that position. If both of you are working and one loses their job, you probably can not pay your bills.
Other than your house, a car is the second most expensive thing you will buy. I wish I had all the money that I have spent on buying sports cars. My current car is 5 years old; that's the longest I have ever kept a new car. Usually trade them in after a few years. Some even a couple of months like the Nissan 300Z.
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What happens if you wreck it within the first 3 or 4 years and don't have gap insurance? You will be further in debt (upsided down) on the next new one.
The same thing happens if you pay cash for your car, just carry liability, and wreck it. That's what insurance is for - the sharing of risk.
My current car is 5 years old; that's the longest I have ever kept a new car. Usually trade them in after a few years. Some even a couple of months like the Nissan 300Z.
My first new car is my current 07 Xterra, and I'm 42 and well off... Different approaches, definitely. :)