This is worse than Black Monday

[accountingsucks]

Everyone discusses Black Monday as an apocalyptic day, but the DJIA in the last 7 days is down 21% (vs 22% on BM). In my mind this is far worse as BM represented the day that the baby went out with the bathwater. What we are experiencing now is a prolonged deleveraging and dumping of stocks. Personally I'd rather have one bloodbath day where everyone gets "wiped out" of equities and it would be clear that a bottom was made. We are only just ENTERING A RECESSION NOW and we are down 40%!!!!! We are only in the 3rd or 4th inning folks..........

 

[Lakewood90712]

Slow death . I remember 1987. Had no equities then , had sold the little I had to put a down payment on a house 6 mo before. That was when a down payment meant something , like 20% on a real aprasial. Banks were not making Liar Loans then.

The Fed an Treasury should have just keep out of it. The market will sort it out if allowed to.

Now Paulson has a nationalize some banks , sort-of plan .

"Ben , crank up the presses , free money for all"

 

[audreyh1]

Maybe this will go down in history as "Black Week" .

The market is discounting far worse than a recession IMO. We just need to get the panic over and done with.

Audrey

 

[harley]

I never understood the "Black" adjective. I thought black ink was for positives. This will be Red October.

 

[Notmuchlonger]

Oh well...

 

[dex]

I never understood the "Black" adjective. I thought black ink was for positives. This will be Red October.

I think it is "Black" as in death.

 

[harley]

Oh, I get it...

YouTube - Monty Python-Bring out your dead!

 

[ladelfina]

can't remember where I just read that, in China, positive market numbers are displayed in red.. losers in green.

 

[riskadverse]

can't remember where I just read that, in China, positive market numbers are displayed in red.. losers in green.

Makes sense - after all it is Red China.

And maybe Red States vs Blue States makes sense viewed from an accounting perspective.

 

[Dawg52]

The market is discounting far worse than a recession IMO. We just need to get the panic over and done with.

Audrey

I saw this reported on Bloomberg this morning and this guy has been correct in his predictions. Pretty scary.


Alert: Nouriel Roubini: The world is at severe risk of a global systemic financial meltdown and a severe global depression

At this point severe damage is done and one cannot rule out a systemic collapse and a global depression. It will take a significant change in leadership of economic policy and very radical, coordinated policy actions among all advanced and emerging market economies to avoid this economic and financial disaster. Urgent and immediate necessary actions that need to be done globally include:
1) another rapid round of policy rate cuts of the order of at least 150 basis points on average globally;
2) a temporary blanket guarantee of all deposits while a triage between insolvent financial institutions that need to be shut down and distressed but solvent institutions that need to be partially nationalized with injections of public capital is made;
3) a rapid reduction of the debt burden of insolvent households preceded by a temporary freeze on all foreclosures;
4) massive and unlimited provision of liquidity to solvent financial institutions;
5) public provision of credit to the solvent parts of the corporate sector to avoid a short-term debt refinancing crisis for solvent but illiquid corporations and small businesses;
6) a massive direct government fiscal stimulus packages that includes public works, infrastructure spending, unemployment benefits, tax rebates to lower income households and provision of grants to strapped and crunched state and local government;
7) a rapid resolution of the banking problems via triage, public recapitalization of financial institutions and reduction of the debt burden of distressed households and borrowers;
8- an agreement between lender and creditor countries running current account surpluses and borrowing and debtor countries running current account deficits to maintain an orderly financing of deficits and a recycling of the surpluses of creditors to avoid a disorderly adjustment of such imbalances.

 

[Sue J]

My son showed me this picture. There are so many topics going about the market condition, was this posted anywhere yet?

It was originally posted at http://gothamist.com/2008/10/09/wall_street_needs_relief_in_more_wa.php with the comment -
"It has not been a good time on Wall Street, and now it's gotten even lower. Reader Adalis writes, "Someone spray painted the Wall St. Bulls balls blue. It was gone in a few hours, but I snapped some quick pics.""

 

[bpp3]

can't remember where I just read that, in China, positive market numbers are displayed in red.. losers in green.

The Tokyo Stock Exchange web site uses the same color scheme.

http://Tokyo Stock Exchangehttp://quote.tse.or.jp/tse/qsearch....%8C%9F%8D%F5%8AJ%8En&KEY2=&REFINDEX=%2BTTCODE

My broker uses red for gainers, blue for losers. (Blue and green are the same color, "ao," in Japanese.)