Seen on money.cnn.com: BREAKING NEWS – Stocks tumbled, Dow shedding over 100 points

[Diego Mamani]

Trex: Have you read today’s front page WSJ article on the recent government interventions?

I agree that the financial media outlets are asking for or applauding the current bailouts. The extract below suggests that since falling house prices are the root of the problem, then we need more government intervention to keep prices up. We know that real (inflation-adjusted) house prices can’t go anywhere but down. However, nominal prices may not drop if inflation is high enough, and that can easily be achieved injecting more liquidity into the system, as is already happening.

Is it enough? Probably not. Although it’s hard to know, the downward tug on the overall economy from falling house prices persists. The next step, if one proves necessary, is almost sure to require the explicit use of taxpayer money.

The case for doing more is twofold. One is to cushion the blow to families and communities, even if some are culpable. The other is to disrupt a dangerous downward spiral in which falling prices of houses and mortgage-backed securities lead lenders to pull back, hurting the economy and dragging asset prices down further, and so on.

[lonestar2000]

As several have pointed out, the last several rallies were caused by drops in the Fed overnight fund rates. These have all been short lived rallies and the dow dropped just as much over the next few days as it had gained the Monday of the rally. You could try to take adventage of this ‘trend’, but as usual, by the time you realize the trend it’s over.

There is little wiggle room left for the Fed in dropping rates, and although printing money is still an option, it won’t be forever, and we’re likely in for more bad news in the coming days then good ones.

From what I gather we’re in for a steep drop in stock values. Although predicting a bottom is futile at best, the sentiment here seems to be that the gathering storm clouds are looking increasingly frightening and lightning is about to strike, possibly more than once.

I for one am going to stay out of the markets for the time being. Yes, there’s a possibility that I will miss out on a prolonged rally, but quite honestly, in my opinion, the chances of that are extremely slim.

[lonestar2000]

As several have pointed out, the last several rallies were caused by drops in the Fed overnight fund rates. These have all been short lived rallies and the dow dropped just as much over the next few days as it had gained the Monday of the rally. You could try to take adventage of this ‘trend’, but as usual, by the time you realize the trend it’s over.

There is little wiggle room left for the Fed in dropping rates, and although printing money is still an option, it won’t be forever, and we’re likely in for more bad news in the coming days then good ones.

From what I gather we’re in for a steep drop in stock values. Although predicting a bottom is futile at best, the sentiment here seems to be that the gathering storm clouds are looking increasingly frightening and lightning is about to strike, possibly more than once.

I for one am going to stay out of the markets for the time being. Yes, there’s a possibility that I will miss out on a prolonged rally, but quite honestly, in my opinion, the chances of that are extremely slim.

[lonestar2000]

As several have pointed out, the last several rallies were caused by drops in the Fed overnight fund rates. These have all been short lived rallies and the dow dropped just as much over the next few days as it had gained the Monday of the rally. You could try to take adventage of this ‘trend’, but as usual, by the time you realize the trend it’s over.

There is little wiggle room left for the Fed in dropping rates, and although printing money is still an option, it won’t be forever, and we’re likely in for more bad news in the coming days then good ones.

From what I gather we’re in for a steep drop in stock values. Although predicting a bottom is futile at best, the sentiment here seems to be that the gathering storm clouds are looking increasingly frightening and lightning is about to strike, possibly more than once.

I for one am going to stay out of the markets for the time being. Yes, there’s a possibility that I will miss out on a prolonged rally, but quite honestly, in my opinion, the chances of that are extremely slim.

[lonestar2000]

As several have pointed out, the last several rallies were caused by drops in the Fed overnight fund rates. These have all been short lived rallies and the dow dropped just as much over the next few days as it had gained the Monday of the rally. You could try to take adventage of this ‘trend’, but as usual, by the time you realize the trend it’s over.

There is little wiggle room left for the Fed in dropping rates, and although printing money is still an option, it won’t be forever, and we’re likely in for more bad news in the coming days then good ones.

From what I gather we’re in for a steep drop in stock values. Although predicting a bottom is futile at best, the sentiment here seems to be that the gathering storm clouds are looking increasingly frightening and lightning is about to strike, possibly more than once.

I for one am going to stay out of the markets for the time being. Yes, there’s a possibility that I will miss out on a prolonged rally, but quite honestly, in my opinion, the chances of that are extremely slim.

[lonestar2000]

As several have pointed out, the last several rallies were caused by drops in the Fed overnight fund rates. These have all been short lived rallies and the dow dropped just as much over the next few days as it had gained the Monday of the rally. You could try to take adventage of this ‘trend’, but as usual, by the time you realize the trend it’s over.

There is little wiggle room left for the Fed in dropping rates, and although printing money is still an option, it won’t be forever, and we’re likely in for more bad news in the coming days then good ones.

From what I gather we’re in for a steep drop in stock values. Although predicting a bottom is futile at best, the sentiment here seems to be that the gathering storm clouds are looking increasingly frightening and lightning is about to strike, possibly more than once.

I for one am going to stay out of the markets for the time being. Yes, there’s a possibility that I will miss out on a prolonged rally, but quite honestly, in my opinion, the chances of that are extremely slim.

[trex]

Hi Diego: Thanks for the WSJ reference.

Interesting that after painting an “up and up and up” picture during the boom, they are now painting a “down and down and down” picture. Show a reporter a trend line and they assume it goes to infinity. It’ll be bad, but we’ll all be better off w/o gov’t intervention.

Trex

[trex]

Hi Diego: Thanks for the WSJ reference.

Interesting that after painting an “up and up and up” picture during the boom, they are now painting a “down and down and down” picture. Show a reporter a trend line and they assume it goes to infinity. It’ll be bad, but we’ll all be better off w/o gov’t intervention.

Trex

[trex]

Hi Diego: Thanks for the WSJ reference.

Interesting that after painting an “up and up and up” picture during the boom, they are now painting a “down and down and down” picture. Show a reporter a trend line and they assume it goes to infinity. It’ll be bad, but we’ll all be better off w/o gov’t intervention.

Trex

[trex]

Hi Diego: Thanks for the WSJ reference.

Interesting that after painting an “up and up and up” picture during the boom, they are now painting a “down and down and down” picture. Show a reporter a trend line and they assume it goes to infinity. It’ll be bad, but we’ll all be better off w/o gov’t intervention.

Trex

[trex]

Hi Diego: Thanks for the WSJ reference.

Interesting that after painting an “up and up and up” picture during the boom, they are now painting a “down and down and down” picture. Show a reporter a trend line and they assume it goes to infinity. It’ll be bad, but we’ll all be better off w/o gov’t intervention.

Trex

[trex]

. Not sure why but Safari must think I’m extra smart. It posts everything twice!

[trex]

. Not sure why but Safari must think I’m extra smart. It posts everything twice!

[trex]

. Not sure why but Safari must think I’m extra smart. It posts everything twice!

[trex]

. Not sure why but Safari must think I’m extra smart. It posts everything twice!

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