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  1. #1

    DOW drops 500 points today

    today the DOW dropped 500 points. the worst decline since 2008

    many are saying the U.S. is on its way to another recession

    for those of you that don't know,DOW is an index on how the stock market is doing. basically when it goes up, thats good. when it goes down thats bad.

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

    yahoo:article
    http://finance.yahoo.com/blogs/break...204130841.html

  2. #2
    Deleted
    Non-farm payroll numbers coming tomorrow. (Jobs numbers)
    Potential for an absolute cataclysm tomorrow, and after that... QE3.

    Last edited by mmoc43ae88f2b9; 2011-08-04 at 11:18 PM.

  3. #3
    shits bout to hit the fan for real

  4. #4
    Yeah, it was pretty crazy watching it plummet today. Tomorrow looks pretty grim too due to a potential lackluster jobs report. S&P also did terrible today with an even worse percentage loss than DJI.
    Last edited by Plagous; 2011-08-04 at 11:21 PM.

  5. #5
    Mechagnome Ricen's Avatar
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    84% of Americans think that the economy is bad... what the fuck are the other 16% doing?

    When a wild forum troll appears

  6. #6
    Quote Originally Posted by Ricen View Post
    84% of Americans think that the economy is bad... what the fuck are the other 16% doing?
    lol where did you find that statistic

  7. #7
    ah yes, yahoo finance, any gentleman's go to when it comes to managing your personal portfolio. Elitism aside, you can't be surprised, the data's been pointing towards this for a while.

  8. #8
    This is an honest question because I seriously know NOTHING about our stock market or how it works.. I can comprehend that this massive decrease is a bad thing, but what exactly does it mean for those that have no business in stocks?

  9. #9
    Herald of the Titans Amry's Avatar
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    I would've thought that the whole debt ceiling deal would've fixed the leaking boat.
    "Oh yay! Happy little deer!
    Now they can grow up and have ADVENTURES.
    You're swell. "

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    (aww... she said I'm swell <3 )

  10. #10
    Quote Originally Posted by Mowgles View Post
    This is an honest question because I seriously know NOTHING about our stock market or how it works.. I can comprehend that this massive decrease is a bad thing, but what exactly does it mean for those that have no business in stocks?
    people's investments have lost value
    so lets say you bought a 1 share for 1 dollar, and lets say it has grown to 3 to be worth dollars over the past year, today it is now worth.90 cents

    other details im not really sure about

  11. #11
    Deleted
    Quote Originally Posted by Amry View Post
    I would've thought that the whole debt ceiling deal would've fixed the leaking boat.


    That solved nothing. It only postponed the problem into the near future, allowing it to become an even worse problem.
    The markets were sure that the debt ceiling would be raised anyway, so it was already priced in the stock prices before the actual deal.

  12. #12
    Quote Originally Posted by Mowgles View Post
    This is an honest question because I seriously know NOTHING about our stock market or how it works.. I can comprehend that this massive decrease is a bad thing, but what exactly does it mean for those that have no business in stocks?
    The Stock Market is about one thing and one thing only: Future Earnings Growth of public companies.

    The Market is worried about the slowdown in the US Economy (Q1 growth was .4%, Q2 was 1.3%--these are very low. We should be around 3-4% for a decent recovery). Add in the problems in Europe and Japan, and Wall Street has doubts that companies can increase their bottom lines in the near future. (The EU27, Japan and the US make up almost 50% of the World GDP.)

    So, the problem isn't the 500 point drop, it's what caused it: the economic slowdown.

    Does this mean anything for non-shareholders? I doubt it. Corporations have had record low effective tax rates and record high revenues the last 1-2 years, yet they haven't hired anyone. (i.e. they aren't the "job creators" they were touted to be anyways... so the crappy job market will continue to be crappy.)

    For shareholders, this is probably an opportunity to buy. Panics like these almost always punish the panic sellers and reward the buyers.
    Last edited by Odyssasthai; 2011-08-04 at 11:48 PM.

  13. #13
    Void Lord Felya's Avatar
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    Quote Originally Posted by Diurdi View Post
    That solved nothing. It only postponed the problem into the near future, allowing it to become an even worse problem.
    The markets were sure that the debt ceiling would be raised anyway, so it was already priced in the stock prices before the actual deal.
    We need more tax cuts on corporations.....................

  14. #14
    Quote Originally Posted by Felya420 View Post
    We need more tax cuts on corporations.....................
    The Republicans would make the nation go into a Depression before they'd ever raise taxes.
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  15. #15
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    Look, pretty much EVER country in the world has massive debt atm. The whole world's economy is failing. Now would be an AMAZING time to globalize currency. I don't see why we can't just do that. ><

  16. #16
    Quote Originally Posted by Felya420 View Post
    We need more tax cuts on corporations.....................
    Why? They have record low effective taxes as is. (i.e. know the difference between the tax rate and the effective rate, after deductions.)

    Bottom line, US Corporations have seen RECORD PROFITS--yet they haven't hired at all. Tax cuts didn't result in jobs the two times Bush did it, or even when Obama did it (largest ever) with the recent stimulus. Why on earth would you think it'd work this time?

    If they aren't going to deploy the record cash reserves they're sitting on, then tax it away from them and build bridges, roads, dams, etc. That will create more jobs than having the money just sitting in bank accounts.

  17. #17
    Deleted
    Quote Originally Posted by Felya420 View Post
    We need more tax cuts on corporations...
    Tax cuts across the board, yes. But you have to cut spending before you can cut taxes.

  18. #18
    Quote Originally Posted by StarbuyPWNDyou View Post
    Look, pretty much EVER country in the world has massive debt atm. The whole world's economy is failing. Now would be an AMAZING time to globalize currency. I don't see why we can't just do that. ><
    cuz then its easier for each country to divide their piece of the pie amongst its people

    ---------- Post added 2011-08-04 at 11:56 PM ----------

    Quote Originally Posted by Flaks View Post
    The Republicans would make the nation go into a Depression before they'd ever raise taxes.
    to make such a generalization is unwise. if you think this is so for every republican then you are sorely mistaken

  19. #19
    Quote Originally Posted by StarbuyPWNDyou View Post
    Look, pretty much EVER country in the world has massive debt atm. The whole world's economy is failing. Now would be an AMAZING time to globalize currency. I don't see why we can't just do that. ><
    Almost all of those countries are working to devalue their currency by monetizing their debt. There's no way they'd turn over that ability by relinquishing their ability to print money (i.e. forming a global currency). The main reason countries like Greece, Spain, Italy, Ireland, etc are on the verge of crisis is because they don't control their money like the US does.

    Not saying it's right to monetize debt, but there's no way that any country wants to be in the spot Greece is.

  20. #20
    Taxes are fine, no need to touch them, we do need to stop Obama from spending like he is, we've already used up 60% of the increase, in only 2 days, but yet no Democrat will dare think of not spending or cutting because they are morons, bigger morons than the average Washington critter

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