Until foreclosures and unemployment peak its going to be all downhill.
The current trend is deflationary; until all the bad debt is washed out of the system that is going to dominate the markets.
Re:Socialism. We are well on track to socialize the credit market; which is as it should be. In 'free' markets, bad money will always drive out good and fraud will dominate. An open, transparent and regulated credit market can prevent future excess and meltdowns.
socializing the markets is not the solution. The government cannot run a business better that people driven by profits. Yes there is greed but I rather have greed than no growth at all.
The problem with deflation is that the government does not have the tools to deal with it.
I would say most investors are waiting for a clear sign of recovery or as said above, they are waiting for everyone else to move in. Many people are planning to jump in on Monday, so I think there will at least be a short recovery for the next two or three days.
V4, we had that huge down move Friday AM, you don't think that might've been it? If the UK drops LIBOR, and the rest of the planet lowers by 100 bps AND governments guarantee everything including the kitchen sink, we could see a big rally, and you're right, I also think it will still come back down.
Top 1%
guliamo
Oct 10 at 3:35 ET
Everyone is waiting for someone else to go first :)
Top 33%
machwa
Oct 10 at 3:44 ET
Come on in...the water's fine! ;)
Top 1%
V4Vendetta
Oct 10 at 5:35 ET
Capitulation.
And lots of it.
Top 23%
davboz
Oct 11 at 2:30 ET
I venture to say that it might take solid assurances that we aren't on the fast track to REAL, TOTAL Socialism.
Top 1%
guliamo
Oct 11 at 2:54 ET
V,
What do you think, has it bottomed out?
Top 1%
V4Vendetta
Oct 11 at 11:30 ET
Nope.
Until foreclosures and unemployment peak its going to be all downhill.
The current trend is deflationary; until all the bad debt is washed out of the system that is going to dominate the markets.
Re:Socialism. We are well on track to socialize the credit market; which is as it should be. In 'free' markets, bad money will always drive out good and fraud will dominate. An open, transparent and regulated credit market can prevent future excess and meltdowns.
Top 1%
V4Vendetta
Oct 12 at 1:16 ET
I very important point I think needs to be made here.
This is not a temporary disturbance in equities, or any sort of anomaly.
The last *decade* of growth was the anomaly. It was full of hot air, fueled by cheap credit and speculation.
What is going on now is a return to fundamentals; a reversion to mean.
Top 14%
WorstPicker
Oct 12 at 4:03 ET
socializing the markets is not the solution. The government cannot run a business better that people driven by profits. Yes there is greed but I rather have greed than no growth at all.
The problem with deflation is that the government does not have the tools to deal with it.
Top 2%
Cosmic
Oct 12 at 6:24 ET
I would say most investors are waiting for a clear sign of recovery or as said above, they are waiting for everyone else to move in. Many people are planning to jump in on Monday, so I think there will at least be a short recovery for the next two or three days.
Top 1%
beancounter
Oct 12 at 7:25 ET
V4, we had that huge down move Friday AM, you don't think that might've been it? If the UK drops LIBOR, and the rest of the planet lowers by 100 bps AND governments guarantee everything including the kitchen sink, we could see a big rally, and you're right, I also think it will still come back down.