Economy since Nov 4th (Election Day)

[Chester]

The Dow Jones Industrial Average is down approximately 21.5% since the election. 

Do you guys that support Obama like the "Change you can believe in?"

Please don't post something ignorant like....  We are still under the Bush administration.

[Canadianbomber]

the market will turn around, it always does after the first quarter of the next year following an election. It's like clock work, nobody is spending anything these days and even though it's the holidays, credit is still tightening up. I predict a 1000 point gain sometime in april.

[pgaloom]

You really can't blame this on one person...This downturn is GLOBAL.  Usually in short-term recessions, precious commodities become more valuable...but not this time.  Gold is down, as is oil.  We are doing it to ourselves...Along with the over 1T bail-out...the Dollar is becoming weaker, but at least dependance on oil isn't as strong as it once was, and that is what is keeping gas from shooting to $10/gal.

The incoming government has 6 months to try and ballast the economy from spiraling into a depression 10x greater than 1929.

But that is just my opinion.

Loom

[tgarber]

I was watching something a while back on CNN or some show like it, that had a specialist on there talking about the economic trend when our country has been through economic depressions. The track record is that when the country recovers, the nation rebounds with a 33% increase prior to the start of the economic downfall.

So I wait.... patiently..... eating crackers and cheeze whiz.... drinking water from the faucet... bathing only twice a week to conserve water.

I'm being thrifty....

Tom Garber

[Shank]

Gotta love gas prices going down to under $2 again....

YAAAAAAYYY!!!!

[Kenny]

Regular unleaded  $1.70 a gallon !!

PS .. What "change" .......  all I see is the same Clinton era people being picked. You democrats have been lied to.

[bigdhat]

Why is this kind of BS on here??? Do you sit there and think, What stupid thing can I start and get the same idiots to respond? Stop the madness!!!!


Respectfully, Dell

[triwizard]

Good point Kenny.

There were all these promises from Obama for a year now, about how he would reach across party lines to get the best people for the job.  References below

http://www.timesonline.co.uk/tol/news/world/us_and_americas/us_elections/article3466823.ece
http://blogs.abcnews.com/politicalradar/2007/12/obama-says-hed.html

But what are we getting in the cabinet?  Dashchle, Clinton, Steinberg, Susan Rice, & Holder.  All holdovers from the Bill Clinton era.  I won't say that's good or bad.  But I will say that this has nothing to do with change if all we are getting is Clinton Presidency v2.0.

[norcalbomber]

This is rediculous.  This does not have anything to do with the incomming president nor the old one.  It was all set in motion a long time ago. 
For the past severeal years we had extremely low (think multi decade) llevels of volatility.  Large leveraged positions were built upon this assumed low volatility carrying out into the future.  So, volatility spikes and everyone has to run for the exits and price plummets as leverage is unwound.
It aint rocket science and it sure hell wasn't of Obama's making.
If you want to blame somene blame the SEC, the ratings agencies, and ALL of the politicians who thought was a great idea to force people into homes they couldn't afford. 
But in the end it all really comes down to greed.

[tgarber]

norcalbomber...

way to go, bro....  tell it like it is!

Tom Garber

ps..  sad thing is that the people who can't see that it's all sprouted from greed are most likely just as greedy.

[SCUDMAN]

Correct me if I'm wrong, most of these foreclosures occured when the adjustable rate kicked in on borrowers adjustable rate mortgages. People were making their payments on the original percentage rate. When the first wave of foreclosures started, investors & lenders could have gotten together, seen the writing on the wall, & said " let's put a hold on the rate increase for now & maybe extend the loan on the back end with all interest payments so we can get our money". Like Tom said, GREED on the lenders part, they should have known when a mortgage goes from 6% to 10 or 11%, people would be in big trouble. Like I said, correct me if I'm wrong, I'm sure there are people here who know more about this than I do.

[norcalbomber]

But then you screw the bond holders.  Those mortgages are bundled up, securitized, and pushed out the door.  Bond holders are massive players.  They provide the money for the whole show to function.  Every type of entity is involved from central banks around the world to the smallest pension and insurance co's.  Not to mention the banks (many of them who are not even aorund anymore) who intermediate these transactions. 

[Geekoman]

norcalbomber...

way to go, bro....  tell it like it is!

Tom Garber

ps..  sad thing is that the people who can't see that it's all sprouted from greed are most likely just as greedy.

BINGO! We have a WINNER!

[hammerhands]

I sell realestate up here in Canada.

The issue with your mortgages was that people bought on speculation. They thought that by the time the rates adjusted, their job would be going well and things would be ok. That could be greed.

Up here, we have similar things happening, but our adjustable rate doesn't fluctuate like yours.

The other thing that caught everyone by surprise was the down turn in the market. In an attempt to get people into ownership the government deregulated the loan process, giving more freedom to banks and lenders. They did what they thought was right (could be greed as well) but the thing that people forget (I was told this a while ago, so bear with me if i am incorrect) is that it was Clinton who came up with that idea. This same informer (who was well educated, and up to date) put things in to perspective for me....... it takes 8 - 12 years for the policies to come around in your government. Based on his example I can see what he is talking about.

On a different note, I think this should be moved to the Back Alley. I am tired of coming on here reading about politics. I responded because I felt the need. But this is a long drive site, not a political debate.


Tim Hansen

[dodgerguru]

I have only 1 problem with anything that has been said in this thread, and that was the comment about people being "forced" into homes they couldn't afford.  NO ONE WAS FORCED INTO ANYTHING.  For the love of God people!  How about some personal accountability.  If you bought a home you could not afford, that is YOUR FAULT.  Stop crying, and act like an adult.  You made the mistake, now pay the consequences.

Mike

[Wig]

Now it looks like the mortgage companys are using the REVERSE MORTGAGE option to prey on the ederly. From what I have seen, the owner or buyer of the home has to be at least 61 yrs of age. Now the mortgage company gives you back monthly payments from your equity keeping you always in dept. This could help some people out in tough times but I see it being a problem with most. In the area I live, there are many river boats and if you have ever seen these places during the daytime, they look like a nursing home. Casino buses pick up and drop off the elderly daily and its for more then the buffett. Does anyone else know more about the reverse mortgage and what you see good or bad coming from it?