Stock Market crash
Stock market crashes happen in October and its happening again. This not not a correction or a sell off this is full fledged stock market crash. The losses for the year 2008 stand around 8.3 trillion dollars of stock market cap wiped off of our national wealth.
Dow and the stock market opened down 700 points and than as some “buy programs†kicked in and bargain hunters showed up and scooped some shares it trapped those bulls and fell apart again in a classical bear market fashion -a text book example. As of this writing Dow is down -452, SPX -43 NDX -43. The stock market is crashing like big waves at Maverick surf competition.
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The fear gage VIX is at 73,5 the highest readings seen since they started this indicator back in 1990 This implies tremendous panic and anxiety in the stock market. Right now the VIX is at 73.5 and a month ago it was at 24 that is almost a 200% increase!
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Loss of confidence in the US financial system stock markets have caused the Dow to drop and crash almost 21 percent in just 10 trading sessions. In this Stock market crash the blue chip index went down 678 points Thursday, and it seems heading to its worst weekly point drop, since being created 112 years ago. There is a complete lack of confidence in the world markets and they blame US for their own woes and for the crash of their own markets.
Long neglected financial strategies in the US has come home to roost finally. Years of Wars and debacles. The real estate markets were struggling and crashing for last 3 years and credit markets were shutting down slowly, but there was no attention paid to these issues. There has been a serious lack of interest by this administration and the stock markets started showing signs of troubles way back last October 2007. Meanwhile the economic climates also stared deteriorating badly. Fears of recession and sinking house values all eroded public confidence. Markets are merely a collection of emotional states of the general public and hence these financial market started showing great strains and finally broke down just like a human being would have.
In this mega fiasco, central banks around the world have been forced to cut rates and inject liquidity, but that did not soothe the rattled investors. Selling pressures in Australia, Indonesia and Russia were so severe that stock markets were halted for trading and prevent them from crashing.
“Fear has been running rampant all over the Street. Fear and greed, that’s what rules the Street. I think the carcass has been stripped to the bone,” said Dave Henderson, a trader for for Raven Securities Corp.
What you are witnessing is history, the stock market crash of 2008. Next we will discuss how to survive stock market crash of 2008
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US is the bastion of Capitalism and free enterprize where no government
intervention is ever required by the financial power houses specially and
other great industrial empires like GM, Ford, GE, AIRLINES, INSURANCE, ETC..
The pride & prestige of capitalism is not to go begging to the government
but to be able to take care of “business as usual”
All this pride is now gone for ever as we have seen the grovelling CEO of all these inept and corrupt organizations go with a begging bowl to Washington.It is no more Wall Street or New York in control of the financial system all
the power has shifted to Washington. No one, except the loosers look to Wall Street for direction, it is the main street common man who has now taken control through their representatives in Washington who leverage the destiny of this country.When a government intervenes to financially “bailout” an organization it is doing so on the basis of Taxes it going to collect from the people.
The government is the representative of the people so the people now own all the institutions /corporations which have been “nationalised” It that not socialism???When capitalism collapses like we are seeing these days it will be the
common man who only has the power to help them by paying with their taxes. The people now own all these defunct instittions / corporations. Is that not Socialim in action?
I cannot see it any other way but obviously glib terms like “rescue plan” etc. are mentioned in the news media just to calm the fundamentals which have all but evaporated.
Your comment on the coming of age of Socialism in America.
Frank
You wrote:
>Long neglected financial strategies . . . but there was no attention paid to these issues.
Exactly, there are many issues in this country that have been ignored. You can’t ignore problems you can only delay them and in doing so make them worse.
Frank,
We don’t need socialism although I agree we are moving in that direction. We need to see the consequences of true capitalism. We need to see the bad players pay the price of their greed and corruption. Capitalism only works when people both suffer from bad decisions and receive rewards from good decisions.
Ned Carey
PS I found your blog from a comment on ProBlogger
Real estate investors last blog post..Lessons from Warren Buffett on Real Estate
Better to be despised for too anxious apprehensions than ruined by too confident a security.
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Excellent article and fresh perspective. Look forward to reading more.
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