So the DOW is down 408 points? Crikey!

[CoffeeCat]

Wow, when I left to run errands, it was down arond 200.

I cancelled cable, because I was addicted to MSNBC, so I have no idea what the blathering heads
are saying.

Is Geithner being blamed for this?

Is it a total panic?

[LSK]

1. the Senate passed a bill that might help mainstreet

A big no-no to Wall Street.

[bluestateguy]

2. We need to close the stock market down for the next 6 months

We don't have time to put up with their unpredictable temper tantrums everytime something happens or someone says something they don't like.

[NJmaverick]

3. The talk is that Geithner's speech lacked detail

which led to a panic of the skittish market.

[underpants]

4. I thought CNN said it was because of TARP

which makes about the same amount of sense

:crazy:

[NJmaverick]

6. Geithner's speech was on TARP, how the second half would be spent

[Veritas_et_Aequitas]

9. And then there's the bank stress tests.

Everyone knows there's no way Bank of America will pass a stress test. It's a dead bank.

[DJ13]

5. Geithner: "....and we'll bring transparency to the bailout..."

Wall Street:





Dow Jones Industrial Average
(DJI: ^DJI)

Down 400.39 (4.84%)

[MrsCorleone]

7. IMO, this is a good sign that Wall Street had their punchbowl taken away. nt

[GoesTo11]

8. What were people expecting that wouldn't have caused a drop?

Some miracle plan? Oh well, another day another month (or two) to work until retirement.

[Veritas_et_Aequitas]

11. They were hoping against stress tests.

Stress testing banks before giving out TARP money will help winnow out the dying banks, including Bank of America.

[Statistical]

13. Any plan

Geitner talked for weeks about this "bad bank" plan to buy toxic assets.

Then today he reveals this super duper plan.
Problem is he forgot the plan.

within minutes the market realized he had NOTHING. NOTHING but some vague ideas that we had months ago.
The longer he talked the more painful it got.

The market was expecting details today. Hell he postponed the speech from yesterday.
Many believed it was to tighten down the last details.

How will the assets be bought?
How will banks be recapitalized?
How will govt insure banks lend?
How many assets will be bought?
How will the assets be valued?
If private money is used how will the govt attract it?
timeline for setting this up?

On the Mortgage side:
who is eligible for mortgage modification?
Will it be done in Bankruptcy or wills servicers be allowed (and protected) to modify mortgages?
Will govt provide protection if modified mortgages still fail?
How much money is set aside?
Will it involve interest rate reduction and/or principle reduction?
What are the terms?
Does loan need to be current or will those in default be eligible?

There were more "details" in OpEd pieces from 2 months ago in the Wall Street Journal than in Geitner's so called plan.

That kinda spooked the market.
Like is the pilot stepped out of the cockpit and asked the passengers if anyone here knows how to fly a plane.

Geitner is an ass and an idiot!

here is my 2 cent tip (all I got left):
"If you have nothing to say then say nothing. Don't get the attention of the entire world investment community just so everyone is 100% aware you have no f***king plan."

[GoesTo11]

16. so should I sell what's left in retirement now and take what's left as cash?

[CoffeeCat]

19. I don't give people financial advice...

...but we got the hell out when the DOW was at about 8,600.

When we converted all 401k funds into MM funds, I felt the stress drain from every cell in my body.

I see nowhere but crash and burn for our economy. There's not one bit of good news on the horizon. Nothing.

The house of cards is falling.

I can't imagine having one penny in the stock market right now.

[madrchsod]

10. this is the first time these guys have faced the fact that they are losing big.

they have been on a big winning streak but now the dealer has a new deck. they are peeing their pants because the cards going against them.

somehow we have been conned into thinking these guys have a clue about what is going on.

[FrenchieCat]

12. The party is over.

Wall street millionaires are jumping off buildings!

[HillbillyBob]

17. Good thing I have a certified "Doormans Extra Heavy Duty, Double Ribbed

With Extra Reinforced Umbrella" guarenteed to stand up to falling Wall Streeters, Seattle Rainstorms and Nukulur Foolout.
Then I moved far far away to Mayberry!
Edit Excuse me for kind of losin it here..after the last 30 years, health problems on and on and on. My personal finances have been crapped out since about 1990 and then got worse after amBushco stole the elections then kind of down hill from there.
We finally find a home we can afford and the rest of the economy takes a dive..
I have been wondering just how long the debt and deficits cycle can last until the country's economy falls apart.
I predicted a fall to 6500 about 5 years ago and that this mess would actually hit 9 months before it did. When I did that I was speaking to an acquaintance that was a retiring investment attorney / banker who got out and predicted a bigger crash to about 5000 but starting when it did...
I don't think we are at the bottom.
I got a lot of bad mouthing for my Doom and Gloom and advising folks to stock up on seeds and dry good. You can grow food most anywhere, but you need water and dirt...
We did move to 'Mayberry' actually about 50 miles east of Mt Airy(Andy Griffith's home town). I am glad we did get away from the cities. Veggies taste much better if you have grown them.
It seems to me that we have ignored the economy and environment much too long, perhaps even so long that there is no fix.
We do need a paradigm change...maybe we will buckle down and do it. I know we have.

[ixion]

14. the sooner we get back to real value (a.k.a 'the bottom') the better...

everything between now and then is just so much wishful thinking.

[scheming daemons]

15. How do we know what number represents the "bottom"???

[ixion]

18. we don't know, precisely... and that's part of the problem

but it's probably a couple thousand points down (at least) from where we are now. I've heard various estimates ranging from the mid 3000's to 6500. It's somewhere around there.

[CoffeeCat]

20. The real crash is just beginning...

...I'd say we're nowhere near the bottom.