You wonder if anyone in the Obama White House, when they're not at private parties or basketball games, watches CNBC. Or reads the blogs. Or even this tiny blog. I hope so. Because they need a wake-up call.
If the stock market goes to zero, and it's well on its way, after school programs for kids really won't matter. Solar and wind energy really won't matter. What we do in Iraq or Iran really won't matter.
Because if the stock market goes to zero, and the money goes away, America, and the world, will be on fire.
When people lose their retirement portfolios, when all the companies go out of business, when the tax base dries up, when all the jobs (and taxpayers) go away, when consumers can no longer consume and savers can no longer save, when Wall Street is destroyed, then universal health care dreams and abortion policy really don't matter.
What Obama needs to quickly comes to understand, and within hours, it that now, it's all about stocks. You do not want to see a Dow 3,000 world. You do not want to see a 300 S&P world.
Because it will be on fire.
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70 comments:
MI5 Alert On Bank Riots
http://www.infowars.com/mi5-alert-on-bank-riots/
http://market-ticker.denninger.net/archives/844-OBAMA-Are-you-LISTENING.html
I wonder what California is going to be like in a year...
We founded this Republic with a GDP less than a hundredth of the current.
Why now will it collapse over economic "deprivation"?
That is the real problem a leader would address. Why are people so shitty?
The biggest generation in the history of the world (Baby Boomers) were starting to retire en masse without the need for the traditional State provided social welfare nets (ie. social security, medicare, public housing) because of the moneys they earned with their 401ks. This meant they weren't going to need Government to take care of them...Republican, Democrat, or Green...This is a MAJOR shift from the way things have always worked going back to the Feudal and religious systems of the medieval period and even Ancient Rome. For the first time a majority of a States citizens were not going to need their State to survive. Erasing the value of their INDEPENDENT retirement plans (401Ks)has made them NEED their government once again. By encouraging/allowing the devaluation of the stock of the largest financial institutions on planet Earth the governments of the Western World are ensuring that the peoples of the world will never have the option of "not" needing the Stae for their financial security again.
This is soo much bigger than Obama, or Bush, or Soot and Ashes. The new mantra should be "We must not let the World keep from going back to normal just because of what they've done. The magnitude of what they've done demands it"!
who the heck VOTED for this idiot??.
This is crap...Obama didn't create this mess and won't get an ounce of credit when the market rallies tomorrow or rallies to new highs in the years to come.
Kramer=Carnival Barker
Obama doesn't work for no Kramer, he works for the people who voted for him and we support him 2 terms HARD!
Keith too bad you did not see this BEFORE you threw your support for him. You may apologize now.
I'm no Obama fan, but I don't recall Kramer yapping about Greenspan, Bernancke, or the Bushites. This collapse is the result of an out-of-control consumer economy based on easy credit despite zero productivity/industry, aggravated by a bubble in housing and commodities and let loose by deregulation, yes? HOW is this Obama's fault, one month into office? Clinton had a hand, yes, Pelosi certainly isn't helping, but Obama?
How is Obama crashing the market?
See my ten point plan
The fact that he's done nothing to support stocks and business, and everything to hasten this collapse, is how.
He's a smart guy. So something is amiss. Perhaps it's bad advice from Geithner, who is a disaster. Perhaps its a desire to punish Wall Street and the banks who got us into this mess.
But what he doesn't understand is that Wall Street is Main Street, thanks to 401ks and pension plans.
He'll lose his support right quick unless he can stop the crash in the stock markets - which he could do in 60 seconds.
Few more days. That's the window of opportunity. Otherwise, armageddon.
McCain-Palin would have already attacked Iran, oil would be $150, and the stock market would be at 2000. And no one wants right wingers in charge in a crisis and having control of the military and national guard.
Obama may be fumbling but the alternative was 100000 times worse.
Tucson Collapse,
Cramer never yapped about Bernanke?
Ahem... http://tinyurl.com/2lbbz7
I spoke witha co-woker the other day. We have a 401k. I told him that I lost nothing bec I was in all in cash. He could not believe me. I told him he better take out what he can and preserve it. He said that he was not going to. He will wait for "The Bounce".
He's a smart guy. So something is amiss. Perhaps it's bad advice from Geithner, who is a disaster. Perhaps its a desire to punish Wall Street and the banks who got us into this mess.
----------
It's George Soros, Obama's pay-master. When he tells Oblama to jump Oblama will find a jet pack.
I won't place the blame on Obama over the stock market. It started with Clinton, and NAFTA. What Ross Perot said back in 1990 holds true today: It's that giant sucking sound that made us dependant on consumer spending for 70% of our economy. Add to that the massive trade deficit.
With most of our manufacturing and service jobs exported overseas, this was going to go down sooner or later. I guess it was sooner. And now, the only sector left is healthcare, and maybe the Mr. President can salvage some of what's left of the construction trade.
I'll say it again: WE WON'T RETURN TO SOLVENCY UNTIL WE START PRODUCING SOMETHING OF VALUE, THAT PEOPLE IN OTHER COUNTRIES NEED AND CAN AFFORD.
And here's another gift: The Nazis would have won WWII had it not been for General Motors, Chrysler, and Ford. In fact, those three companies contributed over 60 trillion dollars to the world's economy since their beginning. And yet, the American public treats them like DIRT, when all they're asking for is a loan to help them get through this jam that resulted from so-called "FREE TRADE".
We may one day see a recovery. But not until Schwinn can start making bicycles in Chicago again. Or, I can buy an American-made Sunbeam Mixmaster. Meanwhile, I'm waiting until I start seeing nurses on the street. Things will be really bad, then.
MrCoffee
Follow Kramer & Loose said...
This is crap...Obama didn't create this mess and won't get an ounce of credit when the market rallies tomorrow or rallies to new highs in the years to come.
It is his problem now. Blaming Bush won't make the market recover.
Either he is very good, very lucky, or very much in control.
"
Soros may be one of the few winners of the subprime housing crisis which brought investment bank Bear Stearns Cos. to its knees and forced many major banks to report billions of dollars (euros) in losses on complex investments based on the housing market.
According to Institutional Investor's Alpha Magazine, Soros' Quantum Endowment Fund — which he no longer manages — made US$2.9 billion (€1.83 billion) last year with returns of over 30 percent.
"
http://www.iht.com/articles/ap/2008/04/17/business/EU-FIN-ECO-EU-Currencies-Soros.php
http://atlasshrugs2000.typepad.com/atlas_shrugs/images/2008/11/18/obama_soros2.jpg
Keith, sounds like you're asking Obama to blow the balloon back up, no?
Remember all the chicken littles prattling on and on and on about a "house of cards?"
Let's crow and guffaw about them some more.
Obama really was placed in a no-win situation.
Regardless of who won in November they would have a hell of a time trying to make things right. Imagine if McCain won? The guy would have passed with a heart attack the moment AIG announced their 62$b loss and we would have had Pres. Moose-Huntin' Palin...
Count your blessings.
My car runs on hope.
It will not stop until dow 1500 and S&P 300. Obama is just a puppet like any other president. This is the organized fleecing of property and wealth worldwide. The sheeple have no clue and All an individual can do is position oneself as best as possible to be alive at the end and have enough capital to try to rebuild what he/she once had and maybe a little bit more. Dow 1500 in less that 3 years....don't doubt me. And don't get your asses handed to you by being in the US dollar after Haloween....you'll get murdered!!!!!
We need to see the Dow hit 3000. The sooner the better.
There is a lot of cash waiting on the sidelines. Everybody, including me, is waiting for the market to bottom. When it does bottom, people will buy again. People will even buy those toxic assets because they know it won't get cheaper. They will buy houses and even buy cars once they know the bottom has been reached and we're back on our way up.
In the past, govt intervention can help economic recovery. Unfortunately, we're at the end of our rope. Monetary and fisical actions have been exhausted.
Govt intervention (stimulus plan) will only protract the decline. A slow and protracted decline will change the core behavior people. People will stop looking for the bottom and the recovery. They will hunker down, hoard, and prepare for the worst.
Hope?
What is hope by definition.
Isn't it like wishing for a long shot?
Praying for divine intervention?
"hope" clearly defines Obama's presidency so far.
Who the heck is this hack? Clearly a ratings monkey and nothing more.
Even the Washington Post says so (sort of).
http://www.washingtonpost.com/wp-dyn/content/discussion/2009/02/27/DI2009022701975.html
Hope and Confidence should be interlinked, and Obama is failing on both
I don't want a housing bubble and I don't want a stock bubble. But I don't want to see good honest people who saved a part of their income, put it away in 401k's in great, honest, productive American (and international) companies, simply destroyed, because Obama and Geithner decided they wanted to destroy the stock market.
The stock market is in general a force of good. It allows companies to raise the capital they need to hire people, invest in factories, conduct R&D, and move the world forward.
Yes, some evil companies like AIG and Citi and BofA need to go away. But should P&G? Disney? Google? IBM? Exxon? I could go on. Good companies. Good jobs. Good wages. Good products and services. And if the entire stock market is destroyed, they, and their jobs and their products, go with it.
And America will burn.
Because Obama wouldn't restore the uptick rule, or modify mark to market, or ban SKF, or increase IRA limits, or eliminate forced withdrawals.
It's stupid. And it doesn't make sense.
You're losing it, Keith. You don't want Obama to rescue the housing market, but you want him to prop up the stock market?
"I don't want a housing bubble and I don't want a stock bubble. But I don't want to see good honest people who saved a part of their income, put it away in 401k's in great, honest, productive American (and international) companies, simply destroyed, because Obama and Geithner decided they wanted to destroy the stock market."
That's the thing, Keith. They're not good, honest companies any more than the realtors and mortgage brokers you've railed against for years were good, honest people.
Even the decent businesses you cite were overvalued in the bubble economy. Even nice houses in great locations have lost significant value. Why should stocks fare any differently?
Houses represent an even larger slice of Main Street's investment portfolio than stocks do.
That's quite a double standard you've got.
Keith, if you were Prexy, your ten point plan would have trouble passing into law. I'm not arguing that we don't need a radical solution, but it sure is easy for you to back-seat drive. From Europe.
I can't believe all the comments blaming Obama. There is such a thing as market momentum, and you've been talking about how this would be "EPIC" for years. Yes, we need to throw a Hail Mary. Now name the politicain who is going to try it? He's taken a lot of heat for the radical steps thus far - from you, no less.
Sure seems that doing nothing, ie. continuing the Bush admin policies cannot be that bad.
If bad news form AIG, citi, and boa is causing the market to decline then perhaps a group of investors needs to move in to fix the problem.
Government cannot do this, I have it on good authority that government IS the problem.
Maybe Obama just isn't interested in helping Wall Street. That could be a good thing. If the some or all of the current big corporations go out of business, doesn't that provide opportunity for small private businesses? Who really wants to work for, support or invest in those corrupt corporations anyway?
I think a DOW 3000 world is just what we need. Look, there has been too much unsustainable growth in profits, spending and consumption for a long time. The Dot com bubble was really only a blip, a lot of other sectors continued their unsustainable practices.
Americans became irresponbile and unaccountable.
I hope the DOW drops to unthinkable lows, simply to kick America in the ass.
I disagree. There is nothing government can do. Imagine an extreme measure: making selling stocks for less than you bought them illegal. But we all know this wouldn't work out the way that someone who made such a law would hope. Everything done to prop up the stock market is a variation on this idea.
The market is crashing because the stocks are worth less now based on earnings. Well, that and the fact that a lot of the banks are totally insolvent and papering over that is getting more and more difficult.
I also challenge the idea that if we get to S&P 300 that America will be burning. That would be what, an 80 percent crash? So ... Great Depression territory for sure. Did society completely come apart during the Great Depression? No. It reorganized and became something else, something that made more sense. It sucked to live through, especially for people who were used to the world working a certain way, but the USA still existed when it was over.
We founded this Republic with a GDP less than a hundredth of the current.
Given that GDP was a product of the great depression, where did you get this information? Has someone reconstructed it?
Also, our population in 1776 was only 2.5 million, so GDP per capita would have been higher or equal to today's value?
Disney? An honest company? Didn't somebody walk with $100Million a few years ago just for getting fired?
I would have taken a shit on the boss' desk the first day if I had a contract like that.
And isn't all their merchandise made in China? Disney is the Wal-Mart of entertainment. I don't care if kids "like it"...of course they do. Sheeple need to be molded from an early age.
Exxon?
Just checking...have they "made whole" the people of Valdez, AK?
What about the companies that outsource?
Nike? Starbucks and $4 lattes?
Perhaps our car companies should be saved as they provide something that people here actually NEED. Transportation. However, tell me why all the good American cars aren't for sale in the U.S.?
Did you know that back in the mid 90's, Ford had a limited production 400HP AWD Escort that could compete with the Porsche 993 turbo?
Even the new Cosworth Focus looks sweet. Too bad we can't get it here.
Even food companies such as Dole are evil.
Just Have a looksee at the owner of the Dole Corporations house that was purchased for 90Million+ in the Freaking 80's.
Here's the Redfin link.
http://www.redfin.com/CA/Los-Angeles/10644-Bellagio-Rd-90077/home/6827034
Every Time you decide to spend 79c/lb on bananas from Central America instead of 1.29 on Apples from Washington or Oranges from California you allow this guy to own even more of the world.
Spend every dollar as if it was a vote.
Buh buh buh the Messiah has been in office "just" 50 days. Only abortion bills get passed on the first week; economy isn't priority.
DOPES
DOLTS
DUPES
DING-DONGS
PUNISH THE GUILTY.
Kill them publicly.
The only way.
Let's see...poor Jim Cramer went to dinner at a restaurant on Friday, went to a restaurant for dinner on Saturday, then to a concert Friday night, then had brunch in a restaurant on Sunday, followed by a movie. Wow, poor guy. Seems like the depression isn't affecting his lifestyle at all. Hard times, indeed.
Keith, you can try to game the markets and it might work for a brief period, but it won't last long and will make things worse. Remember the short selling ban?
"I told him he better take out what he can and preserve it. He said that he was not going to. He will wait for "The Bounce"."
People are waiting for a 1-2k bump so they can get out. This is why we won't see 10k for a loooong time.
Back back to chasing hubcaps.
Keith too bad you did not see this BEFORE you threw your support for him. You may apologize now.
Shut the f*k up - he supported Ron Paul from the start. After the riduculous two party system chose their glorious (read idiot) leaders - he picked the lesser of two evils as did everyone who voted.
Keith... why don't you delete the posts from morons who don't have a memory beyond a week?
And here's another gift: The Nazis would have won WWII had it not been for General Motors, Chrysler, and Ford. In fact, those three companies contributed over 60 trillion dollars to the world's economy since their beginning. And yet, the American public treats them like DIRT, when all they're asking for is a loan to help them get through this jam that resulted from so-called "FREE TRADE".
Get serious, their asking the guys that make 20 an hour to pay guys that make 80 an hour to sit on their ass. Union thug.
If you hope in one hand and Crap in the other.. which one fills up first???
WTF1920 said...
I wonder what California is going to be like in a year...????
calif. is screwed..just like the rest of the country/ world.
watch california's unemployed rate.
this will predict the future for the country/world
thanks ARNOLZD you POS
"Obama may be fumbling but the alternative was 100000 times worse."
I think Obama was the worst choice; i.e. the intellectuals won't bite the hand which feeds them bread and butter.
Where are all those republicans that were shouting that government should stay out of the markets? Free Markets! Free Markets! Deregulation! Now that their net worth are plunging they are screaming for obama to do more to help stabilize the market and install confidence in the economy. What happened to the free market cries
this guy has no credibility keith.quit posting his fake ass please.
Market is Fu*ed Up. All that poision AIG and others were allowed to proliferate the last 6 years has a real cost. you can't just snap your fingers and undo that it takes time and money(lots of both) to undo that shit. Blaming Obama is pure bullshit. Is it obama's fault housing numbers coninue to suck. Is it obama's fault that no one is buying cars or shopping at the malls. Maybe it is obama's fault the rest of the world is doing even worse than the US. You guys are a bunch of winning bitches. It takes tax money to undo this mess but nobody wants to pay the cost to fix this mess.
Laws of unintended consequencies Keith! What did you think, housing prices would crash and it wouldn't affect stock market? We are all in this together my friend.
Buchanan: It's pitchfork time.
http://tinyurl.com/bp473g
Keith, what we need is leadership. Obama is charismatic for sure, but when it comes to the nuts and bolts of leadership, the poor SOB doesn't have a clue. Look at how Putin just shit in Obama's cereal bowl this AM, basically calling him a rookie in his lame attempt at negotiating with Russia.
This is what happens when we elect as President a college prof with no executive experience. Looking good in a tailor made suit and $300 tie only goes so far. A booming, nicotine voice makes little difference when the stuff on the teleprompter is just more of the same bullshit.
"...Blaming Bush won't make the market recover..."
Which of course implies that SOMETHING will.
We're all ears, and all we hear is a deafening silence.
Folks, stock markets were propped up by 401Ks, ritually buying Mid-Caps and Indexed funds, during regular payroll deductions and matching periods.
Regardless of the current market corrections (or crashes), it was preordained that people would eventually have to liquidate these funds for their day to day expenses, during retirement.
So here's the question, isn't it better now, that the markets crash, force people to decide if stocks (vs bonds or even forex) is the best way to pool one's capital then for a multi-decade bear market, once the mainstay baby boomers retire?
I think the idea is crash now and let whatever happens, to happen. All and all, every bear market is a cycle.
And realize, in times of civil unrest, the President and Governors can always declare martial law.
A couple posters have already weighed in on this and I agree with them.
Keith, you can't have it both ways. You called for a worldwide collapse of the financial and market system, not just the housing market. It looks like we will get total collapse soon. You should be happy. You should be promoting how you called this one.
"With most of our manufacturing and service jobs exported overseas..."
Another moron. Go read about manufacturing in the United States. You may be surprised to find out that America is the WORLD's largest manufacturer. You parrotting dipshit.
I would like to say this all falls under the law of unintended consequences.
But it isn't.
Most people refuse to think through the implications of certain actions and blindly follow the like lemmings over a cliff.
We can't just keep giving handouts and "hope" that "change" will work.
The current administration keeps saying they inherited this problem. Wrong. That is a misdirection of the truth.
"who the heck VOTED for this idiot??."
Well I really don't want to name any names "Keith". I guess now we need to figure out how to stop this president from more destruction "Keith".
The two anons I quote below. Obama career is not new, he not new to gov, and he surely is not new to his influences bumping elbows with Fannie Mae and Freddie Mac. They have met, they know eachother, they go back. Got it?
"This is crap...Obama didn't create this mess and won't get an ounce of credit when the market rallies tomorrow or rallies to new highs in the years to come."
"HOW is this Obama's fault, one month into office? Clinton had a hand, yes, Pelosi certainly isn't helping, but Obama?"
Ya! Obama should stop all the bailouts!
This is not a crash YET. The S&P needs to be at about 400-450 just to be in line with historical valuations. This is just a correction of a very big bubble, just like housing.
GT Charlie
Let it go, a sample of California's summer of rage:
www.youtube.com/watch?v=4y-sqcpvSak
Just bought my AR-15, the shop was packed...lots of women!
Your Boy O said today that he is not intently focused on the “day-to-day gyrations of the stock market,” comparing the downward roller-coaster on Wall Street to the fickle nature of political polls.
“You know, it bobs up and down day to day,” Mr. Obama said. “And if you spend all your time worrying about that, then you’re probably going to get the long-term strategy wrong.”
“What I’m looking at is not the day-to-day gyrations of the stock market, but the long-term ability for the United States and the entire world economy to regain its footing,” Mr. Obama said. “And, you know, the stock market is sort of like a tracking poll in politics.”
http://thecaucus.blogs.nytimes.com/2009/03/03/obama-says-he-isnt-focused-on-stock-market-gyrations/
I tried to tell you children...
Obama will get bitch-slapped the world over and spanked like the world's bitch.
Witness Obama get punked by Iran and now Russia, as he tries to kiss ass and make up. Of course they view that as weakness, like the prison bitch.
Enjoy.......
"Because Obama wouldn't restore the uptick rule, or modify mark to market, or ban SKF, or increase IRA limits, or eliminate forced withdrawals."
This plan is supposed to be the magic bullet?
Uptick Rule, SKF - Shorts are not the problem with this market. These changes wouldn't do a thing.
Mark to Market - That's right. Transparency is a bad thing. All that sensible money remains on the sidelines because it doesn't like the look of that head cheese in the deli, but as soon as the butcher puts out the "mystery meat," it will come rushing to the counter to buy.
IRA Limits - So the sensible money that's not buying stocks because it looks like a bad investment would suddenly pour money in, just because they can shelter it in an IRA?
Forced Withdrawals - What percentage of total volume do you suppose this represents?
Actually, I hope Obama and Geithner come out, say this is their plan, proclaim the market saved and the depresssion over and, then, pledge to just stay out of the way.
"Witness Obama get punked by Iran and now Russia, as he tries to kiss ass and make up. Of course they view that as weakness, like the prison bitch."
Yeah, his under-the-table proffers to these kingpins seem to be backfiring. He needs to rent 'The Godfather' again and review his favorite series, 'The Wire'. All of these maneuvers are well covered in those.
Unless...he really is up on his 'hood strategies and is somehow punking these bitches first.....oh boy, I hope so.
you need to read this keith
http://www.ritholtz.com/blog/2009/03/markets-are-rorschach-inkbot-tests/
Barack Obama is the only bright spot in this entire crisis.
I don't think McCain would have done any better.
It was either Ron Paul or Romney. But who cares, we don't like old looking or Mormon people I guess.
We are too stupid to think... except to text for a candidate on American Idol.
Who is going to be kicked out tonight?
A person could also create a cash IRA so it's really a tax deferral strategy than a way to trick people back into the markets.
Well, what did anyone who voted for ObaMachine expect? He was obviusly just a whiff of hot air all along muttering silly words like "change" and "hope" and "yes, we can." He never said anything of substance. He clearly had absolutely no experience ever in any executive position. His career was totally undistinguished. He always spoke with a teleprompter (and still does). He wanted to expand government and do absolutely nothing about balancing the budget, let alone paying off the massive debt, and in fact wanted to massively increase the national deficit and debt.
Looks to me like he hasn't changed a bit from his campaign. Nothing but empty words, status quo, massive spending, no analysis or thought before doing anything, and lots of self-aggrandizing hype and Orwellian double-speak with absolutely no substance whatsoever. Wasn't this exactly what the "majority" of voters were looking for?
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