Is it really that bad? Dow drops 120 points

[themidiroom]

Yeah, this nation is really in trouble.

True.  I have to ask what will cause people to want to invest.  I don't think throwing money at the situation will help.  We saw that when all those banks received bail out money.  The market continued to go down.

[LaylaMonroe]

True.  I have to ask what will cause people to want to invest.  I don't think throwing money at the situation will help.  We saw that when all those banks received bail out money.  The market continued to go down.

I'm no economist, so my answer will be a bit elementary.    But, I'd guess that the only thing that will cause people to want to invest is (1) education about investing, (2) belief that we're headed in a better direction, economically, and (3) JOBS.  When people start getting jobs, or stop fearing that they'll lose theirs due to a poor economy, they'll be a little more willing to invest.  But it starts with education because a lot of folks don't invest or pull out of the market because they don't really know how it works.

[themidiroom]

I'm no economist, so my answer will be a bit elementary.    But, I'd guess that the only thing that will cause people to want to invest is (1) education about investing, (2) belief that we're headed in a better direction, economically, and (3) JOBS.  When people start getting jobs, or stop fearing that they'll lose theirs due to a poor economy, they'll be a little more willing to invest.  But it starts with education because a lot of folks don't invest or pull out of the market because they don't really know how it works.

I like your logic.  Like I said before you have many people investing that don't know much about how businesses should operate.  They invest and want the immediate gratification.  If they don't get it, they sell.  Large companies have to cater to these folks to keep the stock prices going in an upward direction.  As far as jobs, that's something that may not change for a long time.  Once you've been burned jobwise, it can change your spending habits and general outlook so many will never spend in the ways they did before.

[B3Wannabe]

I like your logic.  Like I said before you have many people investing that don't know much about how businesses should operate.  They invest and want the immediate gratification.  If they don't get it, they sell.  Large companies have to cater to these folks to keep the stock prices going in an upward direction.  As far as jobs, that's something that may not change for a long time.  Once you've been burned jobwise, it can change your spending habits and general outlook so many will never spend in the ways they did before.

I think you underestimate the power of the American consumerist's psyche.

[sjonathan02]

I think you underestimate the power of the American consumerist's psyche.

Or, their gullibility and naivety. 

[themidiroom]

I think you underestimate the power of the American consumerist's psyche.

Ok well everyone isn't like me obviously.  I came close to losing my job and I changed my spending habits which were probably conservative by most standards.  I am looking at getting a new camera tho   

[B3Wannabe]

Or, their gullibility and naivety. 

[4hisglory]

Yeah, this nation is really in trouble.

I think the opposite.  I think we are headed towards are greatest day, when everyone from consumers to CEO's to Wall Street will make better decisions in regards to money.

[LaylaMonroe]

I think the opposite.  I think we are headed towards are greatest day, when everyone from consumers to CEO's to Wall Street will make better decisions in regards to money.

Yeah, I figured you'd say that.

However, note I didn't say I think the nation is HEADED TOWARD trouble.  I believe that we're headed toward recovery from this recession that we ARE in whether some want to admit it or not.

What I actually said had nothing to do with where we're headed, but where we ARE, which is in trouble.  That's not opinion.  That's fact according to the experts.

 

[4hisglory]

I think the opposite.  I think we are living in a great time to get rich.  We can buy stocks at 1997 prices.  This is a good thing.

[themidiroom]

We can buy stocks at 1997 prices.  This is a good thing.

And you can buy the stocks with your 1997 money because you may have had to take some pay cuts.   
True, many of us will have learned valuable lessons about money but will the greedy people learn anything.

[B3Wannabe]

And you can buy the stocks with your 1997 money because you may have had to take some pay cuts.  
True, many of us will have learned valuable lessons about money but will the greedy people learn anything.

The thing that they're upset about is that they feel they'll be FORCED to learn--which I don't see a problem with.

I feel that if I was rich, I'd have the love to help those in need more than our country currently does.

[LaylaMonroe]

Well, I guess all the experts are wrong, including the President and all his advisors. 

I wouldn't advise AGAINST buying stocks now, however, I would do so cautiously.  THE BIBLE say that a man who thinks he's standing strong and invincible should take heed or else he'll fall flat on his face.

[B3Wannabe]

Well, I guess all the experts are wrong, including the President and all his advisors. 

I wouldn't advise AGAINST buying stocks now, however, I would do so cautiously.  THE BIBLE say that a man who thinks he's standing strong and invincible should take heed or else he'll fall flat on his face.

So we're at -299.64. That's a pretty big fall!

I'm pessimistic of any modest rally for the next seven to ten days. Maybe we'll see a +10 or +20, but nothing major. I think we'll fall another 150 to 200 points before we add anything over 60.

[csedwards2]

trade it, dont invest it.

Im bout to drop some in the market and trade the rise

[4hisglory]

trade it, dont invest it.

Im bout to drop some in the market and trade the rise

IMO, I think the market will continue to go down still until
1.  The new jobless claims drop
2.  The house situation is stabilized
3.  The goverment is finsihed with the 'bail out funds'

Also, people and the news will have to stop keep preaching 'dome and bloom'.  In January, consumer spending was up for the first time in 6 months, but it's buried in some much negativity that most people probably missed it.

[csedwards2]

IMO, I think the market will continue to go down still until
1.  The new jobless claims drop
2.  The house situation is stabilized
3.  The goverment is finsihed with the 'bail out funds'

Also, people and the news will have to stop keep preaching 'dome and bloom'.  In January, consumer spending was up for the first time in 6 months, but it's buried in some much negativity that most people probably missed it.

but see on the spiritual side, they've been approaching this point for years. It started out with a lil bad news here and there, and now we're at the point (in the information age mind you) that we want to know any and all information no matter how distasteful, graphic, negative, and no matter the detriment that negative news causes....All under the auspices of freedom of information and speech. Now this doom and gloom negatively affects alot of the worlds systems, but for our (the worlds) itching ears we cant help but listen more and more and more.

The doom and gloom will continue........

[themidiroom]

It started out with a lil bad news here and there, and now we're at the point (in the information age mind you) that we want to know any and all information no matter how distasteful, graphic, negative, and no matter the detriment that negative news causes

I agree for the most part but the thing is much of the "information" we receive is someone's opinion and speculation of how things are going.  Sometimes I stumble into the cable news channels and wonder what ever happened to the actual news.  Internet blogs are even worse.

[csedwards2]

I agree for the most part but the thing is much of the "information" we receive is someone's opinion and speculation of how things are going.  Sometimes I stumble into the cable news channels and wonder what ever happened to the actual news.  Internet blogs are even worse.

no doubt, opinions are the best (in the worlds eyes). Opinions drag out the story much longer than they need to be, while facts would squash it. But they can milk a story from the beginning to long after the end with speculation.
Take Chris Browns story for example. His name is still in the news from speculation