Dow down over 300

[Klukie]

I really don't understand the markets too well but I don't think this yo-yo thing going on is a good omen.

http://www.cnbc.com/

[papau]

1. CNBC said Obama would be good for the DOW

[Warpy]

2. The market wants to correct

but keeps getting propped up by rate cuts and funny money. The truth is that the market has been overvalued for the last 10+ years and 100% of the economic plan the GOP has is to prop it up artificially since the GOP still thinks the Depression was caused by a stock market crash.

It wasn't, of course, it was caused by the same maldistribution of wealth we have now that caused the bottom 80% of the population to be drowning in debt, but you'll never convince a Reaganomics ideologue of that.

That's what's causing it to yo-yo.

I predicted that by the time Stupid left office, it would be down around 7000 again. I hope I wasn't being optimistic.

[Klukie]

4. Hey thanks...

It may be a stupid question, but what exactly would happen if the Fed allowed the market to correct itself?

[Warpy]

11. People would lose paper value in their 401K plans

which would make it especially difficult for boomers who are close to retirement age. If they continued to work instead of retiring, likely the Dow will rise again to the point some would feel comfortable enough to quit. It won't while Reaganomics rule.

Luxury spending would take a dive. The sky would no longer be the limit at Sotheby's auctions unless the bidders were offshore. People who are far from being poor would feel so. That would create pressure for economic change that didn't involve more meaningless tax cuts that make the economy worse instead of better.

People like me who are living on interest and dividends would see their net worth drop by half but unless we're trying to leverage debt, that shouldn't be a big deal. Anybody who's trying to incur more debt at this point is just plain crazy, unless it's a fixed mortgage on a modest house in an area where rents are rising rapidly.

[dchill]

9. Ding ding ding.

Kewpie for you. :)

[kirby]

3. Lots of money being made off of this...

Todays bad news was the
'Institute for Supply Management's non-manufacturing index'. We are now a service economy (90% of our economy) and the index fell unexpectedly indicating a contraction in the economy. The number dropped to 41.9, from 54.4!!! 53 was the expectation by analysts/economists.

All this volatility of the market allows for huge money to be made on these swings. Personally, I think the market is trying to fight an inevitable drop below 10000.

[shaniqua6392]

6. Thanks for that explanation.

That does make sense. The market seems to be bouncing around lately. I don't know much about it, but I have been trying to learn. I have learned that we are close to a recession in most states, and states like mine (Michigan) are already in one.

[Klukie]

7. 90% of our economy is service jobs?

Is that what service economy means? If so ...Holy Shit!

[question everything]

5. Chickens come home to roost

For years, many warned about having an economy 2/3 based on service. This means shopping for items whether we need them or not. This is why in 2001 we got some money and they plan to do so now, so that we go out to shop. (If we choose to pay down debt, or put in saving we are un-Americans, of course).

And this is what is happening. People finally are getting smarter, or are pressed, and they do not go shopping and, I suppose, the winter storms did not help much.

But it is too late. We sent all our manufacturing overseas.

Here is what needs to be done: DON'T GIVE US MONEY, PROVIDE JOBS.

Invest in infrastructure that is desperately needed and that can provide jobs at all skill levels that cannot be outsourced. Instead, Bush's 2009 budget heavily slashed the funding for the Transportation Dept.

[Desertrose]

8. Just what Kucinich said about 4 years ago.... n/t

[mrbluto]

10. You know what's scarey?

I saw the title of your post out of the corner of my eye and mis-read it.

What did I think it said for a minute?

DOW over 300

Startling, but somehow believable for a moment considering the disasters this administration has visited upon us.