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gh wrote: gh, what does Google Finance say about the Dow Jones Industrial Average?

*picks up mouse off of mousepad*
It's over NINE THOUSAND!
*crushes mouse in hands*

WHAT, NINE THOUSAND?

bah wrote:I suppose the recent bout of government intervention will calm things down in the markets for a while.

I suppose not anymore.

Another gigantic stock market rally today.

One can speculate that the worse of the financial crisis has subsided, and now we are dealing with the prospect of experiencing a broader and significant economic downturn/recession.

It is also rumored that the Fed will cut interest rates to 1% tomorrow.

There were a few things that I didn't expect to happen in the past few weeks.

The most significant one is the US dollar strengthening so much in these pressing times. I was expecting people to flee the Dollar, but people have been gobbling up those Treasury securities. I guess people feel safe storing their wealth in US Dollars.

Also, I did not expect the great magnitude in the drop in commodity prices, including oil and gold.

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As of right now, I'm not worried about the politics of the issue; I don't really care who gets elected. We have more immediate problems at hand.

If you look up the credit card companies' assets (JPMorgan Chase, Bank of America, CitiBank, etc. not Mastercard and Visa) you'll realize that over 20% of most companies' business is based on credit cards. If the credit card holders default on their debts, there is no collateral and the banks can't recoup their losses. Also, the current bailout plan only covers mortgages, and not credit card debt.

In my opinion, it's going to get worse before it gets better.

As of right now, I'm not worried about the politics of the issue; I don't really care who gets elected. We have more immediate problems at hand.

Short term thinking that got us into this mess in the first place...

SiegeLord wrote:

As of right now, I'm not worried about the politics of the issue; I don't really care who gets elected. We have more immediate problems at hand.

Short term thinking that got us into this mess in the first place...

Explain please.

All I know is that my paycheck isn't going down (and I have nothing invested), but gas prices and the rents of places I'm looking at are...

Nice. Good luck to you in your quest.

Well, I guess I could do an update...

The big 3 automakers are begging for a bailout from the US government.

General Motors will fail in a few months if there is no government intervention.

What say you?