The Dow closes-777.68, The biggest drop in history

I mention this in the politics thread, but I think it deserves is own thread, then hijacking the other one. We could reserve the congress decision over at the politics thread then this one.

This thread is solely for the mere purpose for people who don't understand what the significance of that number(-777.68)means. And to gasp a better understanding on what's going on in a coherent fashion. And plus, have a discussion on what to expect.

Any members here who has a great understanding of the market, pass your knowledge to those who don't, I'll do my best later on the day, I have to digest what I just witnessed. Point blank folks, this is not good....

 

It means the market lost about 7% of its value. There have been worse days. Only start worrying if it drops to 7000.

Most of us are young ones under 30, so we have time to recover. Only worry if you have a lot of debt, or work in the financial sector.

Everyone needs to worry if the bailout passes, cause inflation will shoot up to about 9% I think. (It's 5.4% now)

 

Thank you.

 

I'm no expert, but if there been worst days, why are they saying this is bad, if not, the worst? I'm just trying understand what's going on.

 

Because its the media, and they have to sensationalize everything. i don't keep up with that stuff, so maybe it is the worst day ever, but even if it wasn't, you have to know thats what the media will do with it.

 

<span style='font-family: Comic Sans MS'>7% or 1.2 Trillion Dollars; Fist I can't began to grasp the totality of it, but imagine nobody's credit being good, or going to the atm and there is no money. Could it get that bad... some of the economist seem to think so...</span>

 

I know how the Media works, but I'm just going by the people I know that work at Wall Street and such. There's never been a drop this low, and from the look of things, it seems this won't be the last.

 

It was on the news here, I didn't understand much of what was being said but sentences like "This will cripple the US economy" made it sound very bad.

 

The vocab and technicalities are probably what's confusing you, the jargon had me in a loop today.

It's the largest point value drop. We've never seen it fall below -722 or something until today. But percentage drop, this is the fourth lowest of all time for the US. If that makes sense, if not I'll try to explain more.

 

Re: The Dow closes-777.68, The biggest drop in his

I got it Krsjin. Did some research and spoke to a few friends about the situation. The percentage thing what had me at lost. And looking at the whole "Black Monday" fiasco. You could easily see how the market could gain momentum again. But, this situation is very different.

 

Re: The Dow closes-777.68, The biggest drop in his

strangely enough, i have more faith in the private sector than i do the us government.

none of the large bank owners want their business to collapse- they want to be bought out and the larger bank owners want to buy them. i think the only reason we haven't seen all of these bad assets gobbled up right away is because the government has been so intent on buying them for themselves that it would become a liability if companies bought them before they did.

so actually, i'm pretty glad the bailout didn't go through. i expect that the companies who can afford to buy these bad loans (even if it means on a loan, lol) will do so.

not to say i'm some straightedged neocon who wants no regluation ever (far from it, actually), i just think that congress and the government as a whole has shown how irresponsible they are over the issue, and would rather leave it to people who have a chance of actually improving our economy rather than those who think throwing taxpayer money at a problem they don't understand is a good idea.

 

Re: The Dow closes-777.68, The biggest drop in his

Wall Street is afraid. Main Street sees justice. That's the disconnect.

Really, a bailout would be horrible, as it would encourage riskier behavior in future, and we were taking more risks then someone spamming Jeff's 466P at max charge.

 

Re: The Dow closes-777.68, The biggest drop in his

What also would be horrible would be all these banks closing down and doing nothing about it. Banks employ people, and banks lend money--two very important things to our economy. Punishing Wall Street punishes Main Street, and vice-versa. (I really hate those terms but the news used them so much, everyone gets them.) The two are inseparable.

The CEO of a failed bank will remain rich. When it becomes impossible to get a loan in America, however, the average Joe will be the one to suffer, and businesses will go elsewhere.

The banks are very much to blame for the mortgages, but so are the dummies who took them when they couldn't afford them. It's not only wealthy people who should have personal accountability in this world; all people should suffer these consequences. Throw the decision-makers in jail, and don't bail out the people who screwed themselves by over-borrowing.

Everyone else in the middle (you and me and the financial institutions we rely on in our everyday lives) needs the help.

 

Re: The Dow closes-777.68, The biggest drop in his

With that said, its clear that we need AdamYuki on this issue immediately. He can bring balance to the market.

 

Re: The Dow closes-777.68, The biggest drop in his

fantastically played mr. auvii, you sir, win at the internet.

 

Re: The Dow closes-777.68, The biggest drop in his

Pass! BTW I don't mean to be prematurely optimistic, but I just checked the Dow at +200...