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Should the stock market be temporarily closed until the economy gets better?
02-23-2009, 01:03 PM
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#1
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Dryer sheet aficionado
Join Date: May 2008
Posts: 39
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Should the stock market be temporarily closed until the economy gets better?
Maybe the stock market should be temporarily closed for several months (or even a year or longer) until the economy improves. There is precedent for this: The stock market was closed for several months during WWI.
Why make us watch our retirement accounts continue to shrink, and shrink, and shrink? Shut the market down until things improve. When the economy improves, there will be reason for stocks to go up again.
The November lows are very close to breaking (the lows have already been broken on the DOW), and if they do it could go MUCH lower. Something needs to be done.
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02-23-2009, 01:05 PM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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Are you by any chance a member of the Obama admisistration?
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"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
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02-23-2009, 01:06 PM
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#3
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Dryer sheet aficionado
Join Date: May 2008
Posts: 39
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Quote:
Originally Posted by haha
Are you by any chance a member of the Obama admisistration?
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Of course not.
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02-23-2009, 01:08 PM
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#4
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Moderator Emeritus
Join Date: May 2007
Posts: 12,894
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If the government shuts down the stock market for a few months, I will sell all my equities the minute the stock market reopens (even if the economy has improved in the meantime) and never invest in the market again. EVER. If you don't want to see your account balances go down, don't look!
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02-23-2009, 01:09 PM
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#5
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Recycles dryer sheets
Join Date: Jan 2009
Posts: 170
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Russia is all ready doing this.
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02-23-2009, 01:09 PM
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#6
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Moderator Emeritus
Join Date: Sep 2007
Posts: 17,773
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You can always pull your money out of it and stop looking at it.
I don't know the story of the markets being closed during WWI. How did that work? If it were "closed" how would people be able to move money out and into it?
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
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02-23-2009, 01:13 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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02-23-2009, 01:14 PM
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#8
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Recycles dryer sheets
Join Date: Sep 2006
Posts: 312
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The markets already have automatic "circuit breakers" which temporarily halt trading in individual stocks when they exceed (e.g., fall) too far in a few hours or a day. This is presumably to prevent panic or hyperactive program trading from causing the kind of excessive volatility that breeds even more panic, etc.
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02-23-2009, 01:18 PM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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Quote:
Originally Posted by Grep
The markets already have "circuit breakers" which temporarily halt trading in individual stocks when they exceed (e.g., fall) too far in one day. This is presumably to prevent panic or hyperactive program trading from causing excessive volatility.
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True. But paradoxically, the more the markets fall over time, the less likely they are to trip the circuit breakers because the point drop that's required remains fixed -- meaning that the percentage drop needs to be a lot higher now.
The first circuit breaker as of 1/1/2009 would have kicked in with a 10% decline, but at current levels it would take an 11.9% drop until the circuit breaker levels are reset.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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02-23-2009, 01:20 PM
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#10
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Recycles dryer sheets
Join Date: Jan 2009
Posts: 170
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Quote:
Originally Posted by Grep
The markets already have automatic "circuit breakers" which temporarily halt trading in individual stocks when they exceed (e.g., fall) too far in a few hours or a day. This is presumably to prevent panic or hyperactive program trading from causing the kind of excessive volatility that breeds even more panic, etc.
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True but they don't kick in until we are down like 12% interday.
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02-23-2009, 01:21 PM
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#11
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Recycles dryer sheets
Join Date: Sep 2006
Posts: 312
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Heck, it feels like twice that every day. But of course the idea that we should close the markets "so we don't lose any more money" has no merit.
By the way, Zimbabwe's markets just opened again, after being closed for three months. Now, trading is done in U.S. dollars. The entire first day's trading amounted to about $30!
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02-23-2009, 01:28 PM
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#12
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Recycles dryer sheets
Join Date: Jan 2009
Posts: 170
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Madoff managed a hedge fund that was bigger then the budget of California in over 13 year, never made a trade. How many clones are out there?
Now a gaggle of MLB players can't pay their bills because of being hooked by Stanford.
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02-23-2009, 01:32 PM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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Quote:
Originally Posted by cloudeleven
Of course not.
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I also think the markets should be closed because they are commenting unfavorably on the administration's program. Bond markets too should be closed. Banks should be forced to keep whatever loans or investments they have at present, and not trade or re-allocate these. Next Fox News, New York Post, Rush Limbaugh, The National Review and the WSJ should be closed for the same reason, as they too sometimss comment unfavorably on the new programs.
Next the midterm elections should be cancelled, because we all know what happened to Clinton in the midterms.
While we are at it, we should prohibit divorce, as all these divorces make Americans look like losers at love.
I am glad you brought this up, as it makes clear what has been missing from our national response to the recession. We need to do a lot more!
Ha
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"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
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02-23-2009, 01:33 PM
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#14
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 7,746
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Open and liquid financial markets allow price discovery to occur quickly and efficiently. In general. Very important tool. I vote "keep open".
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02-23-2009, 01:34 PM
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#15
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Recycles dryer sheets
Join Date: Jan 2009
Posts: 170
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Quote:
Originally Posted by FUEGO
Open and liquid financial markets allow price discovery to occur quickly and efficiently. In general. Very important tool. I vote "keep open".
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What do you think of government capital injections in "certain/the chosen" companies?
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02-23-2009, 01:34 PM
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#16
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Recycles dryer sheets
Join Date: Sep 2006
Posts: 312
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And we should close this forum to prevent further depressing thoughts.
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02-23-2009, 01:35 PM
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#17
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Moderator Emeritus
Join Date: May 2007
Posts: 12,894
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The other thing is that in 1914, few people depended heavily on the stock market to finance their retirement. Today, with a hoard of people counting on their IRAs/401Ks and investments in general to pay their monthly bills, closing the market for a few months / years (who knows how long it would take for the economy to recover?) would be a nightmare of epic proportions.
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02-23-2009, 01:38 PM
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#18
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Recycles dryer sheets
Join Date: Jan 2009
Posts: 170
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Quote:
Originally Posted by Grep
And we should close this forum to prevent further depressing thoughts.
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I got stuff I bought last week that is all ready down double digits.
Can you have a negative SWR rate?
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02-23-2009, 01:42 PM
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#19
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Moderator Emeritus
Join Date: May 2007
Posts: 12,894
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Quote:
Originally Posted by Gpond
I got stuff I bought last week that is all ready down double digits.
Can you have a negative SWR rate?
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Yes you can!
Let's see... The W in SWR is for withdrawal, so make it negative and you have an addition.
Adding money to your accounts is easy: keep w*rking or go back to w*rk! (nervous laugh...)
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02-23-2009, 01:48 PM
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#20
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Recycles dryer sheets
Join Date: Jan 2009
Posts: 170
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Quote:
Originally Posted by FIREdreamer
Yes you can!
Let's see... The W in SWR is for withdrawal, so make it negative and you have an addition.
Adding money to your accounts is easy: keep w*rking or go back to w*rk!
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I start my new j*b March 6th. Was suppose to be March 13th but I can't wait another week.
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