Is it really that bad? Dow drops 120 points

[B3Wannabe]

I just looked at the Dow, and it's down 120 points from yesterday. All this week the Dow has dropped, because of the government's stock in CitiBank.

The fear is basically that the government will force them to lend money to lower/middle income families. Is it really THAT bad?

[LaylaMonroe]

Yes, it is.

Much to the surprise of the folks who insisted it wasn't "that bad."

Yeah, it's that bad.

[B3Wannabe]

I mean is it that bad that people have to pull their money out of the stocks, because they don't want it loaned to "poor" people. That's basically what's happening, and it's causing the Dow to drop.

We've lost about 300 points this week, because of this.

Korean Won is even pushing up into 1550/dollar, which is the highest it's been since 1998.

[nessalynn77]

I mean is it that bad that people have to pull their money out of the stocks, because they don't want it loaned to "poor" people. That's basically what's happening, and it's causing the Dow to drop.

We've lost about 300 points this week, because of this.

Korean Won is even pushing up into 1550/dollar, which is the highest it's been since 1998.

Something I never understood, why don't they wait til something actually happens to start freaking out?  I mean we can speculate, but we don't know that the government is going to do any of that, yet.  And even if they do, who knows to what extent and if it will or will not work?

[under13]

I mean is it that bad that people have to pull their money out of the stocks, because they don't want it loaned to "poor" people. That's basically what's happening, and it's causing the Dow to drop.

We've lost about 300 points this week, because of this.

Korean Won is even pushing up into 1550/dollar, which is the highest it's been since 1998.

Would you loan $350,000 to a poor person?

[LaylaMonroe]

Something I never understood, why don't they wait til something actually happens to start freaking out?  I mean we can speculate, but we don't know that the government is going to do any of that, yet.  And even if they do, who knows to what extent and if it will or will not work?

Because you have to pull out before you lose money. 

The stock market is no joke.  When all this talk about a bad economy first started getting loud about a year and a half ago, I decided to ride it out.  Only time will tell whether or not that was a big mistake, but as of today, it's not looking so good.  LOL.  I've lost more than half of my entire portfolio (stocks, bonds, IRA and 401(k)).  It's not always wise to wait until something happens.

[kodacolor]

Would you loan $350,000 to a poor person?

In the summarized words of the banks...Yeah.  They always owe me, tye ways pay (or else I'll charge interest), I'll always have money.

I really need to get into stocks.  When they go back up maybe I'll have enough money to jump start my in-home editing suite...or get and apartment...or pay off my car...or get a box of tissues...lol... ya never know.

[4hisglory]

I mean is it that bad that people have to pull their money out of the stocks, because they don't want it loaned to "poor" people. That's basically what's happening, and it's causing the Dow to drop.

We've lost about 300 points this week, because of this.

Korean Won is even pushing up into 1550/dollar, which is the highest it's been since 1998.

Citigroup isn't driving the Dow down, FEAR is.  The Dow will drop about 8 points for ever dollar that a company in the Dow falls one dollar.  So if City group AND Band of America drops down to 0 the Dow will fall less than 100 points.

Here's my two sense.  We've been in a recession for 14 months.  for 7 of them, most people didn't even know.  But now that its on the news everyday, people are scared and not spending.  No spending equals recession.  So when people comes fiscally responsible, guess what happens? 

[nessalynn77]

Citigroup isn't driving the Dow down, FEAR is.  The Dow will drop about 8 points for ever dollar that a company in the Dow falls one dollar.  So if City group AND Band of America drops down to 0 the Dow will fall less than 100 points.

Here's my two sense.  We've been in a recession for 14 months.  for 7 of them, most people didn't even know.  But now that its on the news everyday, people are scared and not spending.  No spending equals recession.  So when people comes fiscally responsible, guess what happens? 

That's what I mean, we're not responding to reality, we're responding to a perceived, possible threat. 

Yeah, Rue, I'm riding mine out, too.  Fortunately it's not my only plan for retirement, but it was meant to help me have more security and comfort when the time comes... I believe I'll recover all.

[kodacolor]

... I believe I'll recover all.

*sings*

Yes I rejoice today
For I shall recover it all!

[B3Wannabe]

Would you loan $350,000 to a poor person?

They're not loaning 350,000 to A poor person.

The money will be available for "responsible" people. I know that is vague, but I still don't think there is a need to freak out. Most of us here would be on the receiving end of these benefits. Do you think you're irresponsible?

You know what though...I just thought about it. If the won is this high, it's time for me to get some more suits!!!

[under13]

  So when people comes fiscally responsible, guess what happens? 

Can you please explain what you mean?

Do you think you're irresponsible?

Pretty much.

That's what I mean, we're not responding to reality, we're responding to a perceived, possible threat. 

Yeah, Rue, I'm riding mine out, too.  Fortunately it's not my only plan for retirement, but it was meant to help me have more security and comfort when the time comes... I believe I'll recover all.

Jesus is a ll the security and comfort you need 

[BigFoot_BigThumb]

So what kind of effect would this have had on Forex daytrading?

[nessalynn77]

Jesus is a ll the security and comfort you need 

That's right, if he can't restore it, it can't be done anyway, lol!

[B3Wannabe]

So what kind of effect would this have had on Forex daytrading?

Well the dollar went down, so the Korean won should lose against the dollar. You would think that it would be the opposite, but what happens it that since our dollar is cheaper, we're not investing in Korea, so THEY lose money, which make our money worth more there....sounds weird...I know.

It works the opposite with the Yen. I think it's opposite with the Pound and Euro too. I haven't studied those too much. The only currencies I really studied were the Won and Yuan vs USD

I just check the Korean Won rates, and it look like they froze their market. There should be some change, and nothing is registering. It's almost 11AM there. Their market was supposed to open two hours ago.

...Oh! It's Saturday there!

[themidiroom]

Because you have to pull out before you lose money. 

The stock market is no joke.  When all this talk about a bad economy first started getting loud about a year and a half ago, I decided to ride it out.  Only time will tell whether or not that was a big mistake, but as of today, it's not looking so good.  LOL.  I've lost more than half of my entire portfolio (stocks, bonds, IRA and 401(k)).  It's not always wise to wait until something happens.

That's why I don't fool around with the stock market much.  While it's good to pull out before you lose money, the fact that so many people are pulling out means that nobody is making money.  We thing things are bad, so don't invest then things actually become bad.  While I think the concept of the stock market is good in theory, too many companys are at the mercy of the stockholders who may actually know very little about how a business really needs to be run.  The top priority then becomes to do whatevery you need to do to make the quarterly reports look good for the stockholders.

[B3Wannabe]

That's why I don't fool around with the stock market much.  While it's good to pull out before you lose money, the fact that so many people are pulling out means that nobody is making money.  We thing things are bad, so don't invest then things actually become bad.  While I think the concept of the stock market is good in theory, too many companys are at the mercy of the stockholders who may actually know very little about how a business really needs to be run.  The top priority then becomes to do whatevery you need to do to make the quarterly reports look good for the stockholders.

You can "sell" stocks betting that they'll go down. If they go down, then you can make money. If they go up, then you lose. That's called a Put Option.

...so SOME people are making money.

[themidiroom]

...so SOME people are making money.

Alrighty,  I know some people are making money, but a lot more people are losing money than normal.  I suppose I am a fan of small business that can make money, create jobs, etc without handing over so much control to stock holders.

[B3Wannabe]

The DOW just dropped 200 points so far.

:|

[LaylaMonroe]

Yeah, this nation is really in trouble.