Did not see this one comeing. Bailout & Dow Jones

[MC Twinkie]

So really the 700 Billion $ bailout didn't help the economy according to the dow. The government is basically going to print a bunch of money, devalueing the dollar; but, we have foreign investors. So if you have a stock worth 100$ and we print a bunch of money that stock is probably still worth 100$. The problem is that if 1 month ago the dollar was worth 1.5 german marks, and in a month the trade rate is 1 dollar to 1.75 german marks, your 100$ stock just took a 14% hit in the foreign market.

So I guess what I'm saying is I think the dow is plunging because all the foreign investors are pulling out. I haven't a clue how this affects the economy long term.

[PETA]

The Dow is sinking because people are selling for less than what the stock was previously worth - there are fewer buyers and more sellers at a given price until the sales price is reached. People are selling because they want to cash out - that may be motivated by a need for the cash, desire for the cash, by a fear that if they don't get out now all value will be lost, by a belief that they can buy back in at a lower figure and pocket the difference (wait - check that - how exactly is SEC defining a short sell David?), by a desire to move their capital from one asset to another.... and there are other reasons too

[J. Fees]

its been 2 fucking days, you think the dow was gonna hit 20k by Friday??

[MC Twinkie]

I think the real question is, when Bush is accused of fucking up the country, will obamo pardon him because bush gets a race card? /scratch head

[C-fer]

Originally Posted by J. Fees

its been 2 fucking days, you think the dow was gonna hit 20k by Friday??

Fuck yea, this is the 21st century, everything is supposed to be instant damnit.

Come to think of it, where's my teleporter at?

[PETA]

Originally Posted by DjKrispy

Fuck yea, this is the 21st century, everything is supposed to be instant damnit.

Come to think of it, where's my teleporter at?

my fucking flying car too dammit

[MC Twinkie]

I have no clue what 2 days has to do with anything. Xian is right, its about what people think their stock is going to be worth in the future. So what day it is doesn't really matter. Its the day you plan on selling it. he is right, its a lot of fear based selling, but with good reason.

[david austin]

oh geez

[J. Fees]

Originally Posted by MC Twinkie

I have no clue what 2 days has to do with anything. Xian is right, its about what people think their stock is going to be worth in the future. So what day it is doesn't really matter. Its the day you plan on selling it. he is right, its a lot of fear based selling, but with good reason.

well the bill was signed fri(maybe thurs, i forget). So your judging the performance of this bill after 2 business days. If i was to order something from ebay on Fri. it wouldn't be here by now.

[david austin]

i just really dont even know what to say

[PETA]

the gov't hasn't started buying paper yet afaik

[david austin]

hell they just assigned the lead manager last night

good god people

[J. Fees]

if the dow isnt at 35k by next month i'll have to say this bailout was a total failure!

[david austin]

well lets just get this out in the open ONE MORE TIME

credit thaw /= stock market gains

in direct correlation at least... and certainly not overnight... or even next month

[J. Fees]

Originally Posted by david austin

well lets just get this out in the open ONE MORE TIME

credit thaw /= stock market gains

in direct correlation at least... and certainly not overnight... or even next month

but, but, did you notice the market is down?