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Title: Market Craters: Dow Falls 512 Points
Source:
Naked Capitalism
URL Source: http://www.nakedcapitalism.com/2011/08/market-craters.html
Published: Aug 4, 2011
Author: Yves Smith
Post Date: 2011-08-04 16:59:11 by lucysmom
Keywords: None
Views: 6022
Comments: 17
What we are seeing today is not as bad as the worst days of the crisis, but it ins’t much consolation for investors who had gotten back in the pool on the belief that the system had been patched up reasonably well and the economy was on the mend. All the authorities did was patch up a predatory banking system with duct tape and bailing wire and hoped enough cheerleading would restore confidence. And after the banks got their bailout money, the mood seemed to be “we spent so much on them, we don’t have anything left for anyone else.” The alarming rise in government deficits, which was primarily the result of the crisis (falls in tax revenues and increases in automatic stabliizers like unemployment payments) and not discretionary spending, has led to a deadly combination of austerian policies (which is making debt to GDP ratios worse, see Ireland, Latvia, and Greece for proof), dysfunctional government responses, faltering recoveries, and deliberate shredding of social contracts. It’s like watching a house burn and then having people throw Molotov cocktails at it. The pattern of serious financial crises is the market meltdown hits first, then the real economy plunge takes place later. Our officialdom had been patting itself on the back that “better” policy responses had stopped the sort of damage that the US suffered in the Great Depression and Japan experienced in its post bubble hangover. But the GDP revisions of last week included some stunning reductions to 2008 figures which called the comparatively cheery story we’ve been told into question. And the powers that be have refused to take the important step of writing bad debt down... Poster Comment: Good news guys...
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#1. To: lucysmom (#0)
Paging Obama. Paging Barack Obama. Pick up the white courtesy phone, please. It's Wall Street calling. Crank up the printing presses. Time for another bailout
I'm sure you'll find some way to blame it on Herr Dumbass Bush...
It used to be the leftists that had bumper-stickers that said things like "Question Authority.' Today they follow slogans from 1984: War is peace. They blindly LOVE Big Brother. They believe competition, pride & profiting from ones labor, are evil things to be banished. Stephen King observed, "The beauty of religion mania is that it has the power to explain everything... [so] logic can be happily tossed out the window. This describes socialists. They will ignore logic and "common sense." They will ignore REALITY. Because THEY are religious zealots... THEIR God... is the STATE.
Naaa - this time I'm blaming it on you and your ilk.
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
You might try looking in the mirror. You and the other 53 percent.
Who give's a shit? We all have our well paying Green Industry shovel-ready jobs to go to first thing in the morning thanks to Barry H. Obama's Stimuli 1&2 & QE 1&2 & that RINObama TARP combo thingy.
Obama's watch stopped on 24 May 2008, but he's been too busy smoking crack to notice.
lm; Naaa - this time I'm blaming it on you and your ilk. Let me ask you an honest question lm. Are you serious?
Spoiled, stupid and ignorant, brain dead phuckwads, libTURD fools, tools, and idiots, are the real sickness; the messiah "king" obammy and his regime are only the symptoms.
. F! DUDE! Don't do THAT! LOL! Now you owe me a cup of coffee and a monitor! LMAO! "WERD!"
Spoiled, stupid and ignorant, brain dead phuckwads, libTURD fools, tools, and idiots, are the real sickness; the messiah "king" obammy and his regime are only the symptoms.
He's too busy servicing his $38,500 a plate rich donors. Let's not forget the $10,000 a click photo opportunities. Even better, his next move will be a bus tour of the industrial mid-west states to "talk" about jobs. The only thing this guy knows how to run is his mouth. He's been in permanent campaign mode since he's been in office. Even his "accomplishments" (Obamacare and the "stimulus") were not even his bills -- he outsourced those to Pelosi and Reid. This guy is the most inattentive and ineffective President the country has ever had.
He's certainly going to give Bush a run for the money, no doubt. BTW, did Obama cause the rest of the world markets to tank today as well?
He's certainly going to give Bush a run for the money, no doubt. Wow - if Obama is losing skippy, he really is in trouble. That "Reichstag Fire" event to cancel the '12 elections is looking more certain by the day . . .
As I posted yesterday, western politicians in general are delusional -- living in a dream world. Yes, we're in a global economy. So, the failure of crazy Democrats and cowardly Republicans to do something about the mounting debt is indeed having an impact on world markets. So is the looming catastrophe in Europe.
I think the looming catastrophe in Europe is the bigger issue here.
Nope - it's those bastards in their corporate jets. Maybe we should also check the air pressure in our tires . . . / sarc
U.S. debt to GDP ratio reach 100% yesterday. Most economists believe that 90% is the tipping point. Italy's is 118%. Greece is at 130%. The credit rating agencies were looking for a package that would slow the accumulation of debt by $4 trillion over the next decade. They didn't get it. America is the largest economy in the world. The dollar is the world's reserve currency. Of course, the failure of politicians to do anything about our long- term debt issues is a major component of the economic malaise and looming disaster the world faces.
As long as the re-election rate for politicians is around 95% nothing will ever change.
The reelection rate won't change until the people and organizations who are paying the bills get as active as the people and organizations who are mooching off of the system.
Market Craters: Dow Falls 512 Points
#2. To: lucysmom (#0)
Freedom is slavery.
Ignorance is strength.
#3. To: Capitalist Eric (#2)
I'm sure you'll find some way to blame it on Herr Dumbass Bush...
#4. To: lucysmom (#3)
Naaa - this time I'm blaming it on you and your ilk.
#5. To: lucysmom (#0)
#6. To: lucysmom (#0)
"We (government) need to do a lot less, a lot sooner" ~Ron Paul
#7. To: lucysmom, Capitalist Eric (#3)
ce; I'm sure you'll find some way to blame it on Herr Dumbass Bush...
#8. To: hondo68 (#6)
#9. To: Get Outta Dodge! (#1)
(Edited)
Paging Obama. Paging Barack Obama. Pick up the white courtesy phone, please...
An ideal form of government is democracy tempered with assassination. -- Voltaire
#10. To: jwpegler (#9)
This guy is the most inattentive and ineffective President the country has ever had.
#11. To: Skip Intro and go directly to democrat talking points, jwpegler (#10)
This guy is the most inattentive and ineffective President the country has ever had.
#12. To: Skip Intro (#10)
did Obama cause the rest of the world markets to tank today as well?
This small group of terrorists [Tea Party members] have made it impossible to spend any money. -- Mike Doyle (D-PA)
#13. To: jwpegler (#12)
#14. To: jwpegler (#12)
Yes, we're in a global economy. So, the failure of crazy Democrats and cowardly Republicans to do something about the mounting debt is indeed having an impact on world markets. So is the looming catastrophe in Europe.
#15. To: Skip Intro (#13)
I think the looming catastrophe in Europe is the bigger issue here.
This small group of terrorists [Tea Party members] have made it impossible to spend any money. -- Mike Doyle (D-PA)
#16. To: jwpegler (#15)
#17. To: Skip Intro (#16)
(Edited)
As long as the re-election rate for politicians is around 95% nothing will ever change.
This small group of terrorists [Tea Party members] have made it impossible to spend any money. -- Mike Doyle (D-PA)
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