Stocks plunge...Fed pumps in $41 Billion

Thank you Fed for ruining things once again.

Info from Yahoo Finance.

All of us who used to watch our money slowly decrease in value are now witnessing a rapid decrease in value. Has the Fed lost it's ability to control our monetary system? Are we in for a free fall in dollar value, hyperinflation? It sure looks like it.

You ever get that feeling that something is just not right?
There is nothing more to do now but try to prolong the inevitable.

[edit on 1-11-2007 by Digital_Reality]

I know what they're trying to do, they being the Fed; however, how many times can you keep doing that before it all implodes? Maybe there was a reason Greenspan walked away.

The US dollar has to be reduced to match Canda and Mexico for when they go to North American Union.

reply to post by Digital_Reality



You are right something is no right, our nations has been under a fantasy and a dream of prosperity and wealth, but is nothing more than an illusion as you can see is becoming harder and harder to maintain the illusion any longer.

The fed is just trying to delay what can not be stop until after the holiday spending frenzy.

"Plunge"? The DOW droped 2.5% after it was up near as much the day before.

Q2 GDP came in 3.8%, Q3 3.9%. The consumer spending deflator is reading 2.1% for the past year, compared with over 3% six quarters ago. The core inflation rate is down to 1.9%, below the Fed's 2% target.

The "plunging" dollar is just returning to levels before the Asian currency crash of the late 90's. If you read the pros, the'll tell you the euro is overvalued and the eu is in danger of deflation. Ask Airbust or BMW what they think of the present value of the euro. You can bey they're not happy. Look for the eu to capitulate and lower rates.

I'm up > 50K so far this year, keep this "plunge" coming! Stocks on sale!

Dolts.

reply to post by Number23


So you think this whole thing is just going to blow over? What about all the ugly SIVs and conduits flowing about? Downgrading of securities left and right? Banks writing off losses (certainly not all--yet) at every corner?

Talking about the core inflation numbers are laughable. You know as well as I do that food and energy prices have gone WAY up. You may cite something like home computers that have decreased or steadied in price, but let me ask you this, can you eat a computer?

Consumers have overreached big time. Take a look at how many of them are now using credit cards to pay other debt obligations to simply exist at the status quo now that HELOCs have dried up. It's going to be a Grinchmas this year. Foreclosures area lmost double what they were a year ago and it will undoubtedly worsen. Consumer spending makes up 76% of our GDP, so what happens when the consumers are crunched for cash?

The above isn't even tinfoily crap either. I'd hardly want to be going long anytime soon.

The Feds are trying to bail out mortgage companies at the cost of YOU and ME. I do not agree with this, even if it means I would lose my job. I have been in the mortgage industry for over 23 yrs. I saw this coming a couple of yrs ago.

The lenders became laxed on lending money. Lending money to people who should have not received a mortgage loan. I'm talking people buying million dollar homes with little to no money down. The lenders offered loans where borrowers did not have to show any documentation that they could afford the home, nor documentation that they had money in bank accounts to purchase a home.

The strangest part of the not verifying a borrower's money, leads me to think of money laundering. No questions asked. Yet you go and make a $5000 or greater deposit into your account and you have to go through all kinds of stuff to show money is from a viable source. As well, when you make large deposits, banks are required by law to report this to the Federal Banking System. Yet people where able to come and purchase a home, state they have $100,000 to use (note the money was not verified that it was from a viable source) it was not verified at all.

Lenders took the borrowers word for it that he had a $100,000 and money was legit. Turns out monies were not legit, income was not legit. Borrowers are unable to afford the homes.

They get to stay in them for about 10 months for free if the property was to be foreclosed on. Ex. Settle on a home in October, first mortgage payment is not due til December (your in home 2 months). You miss the first payment, lender calls, they really cannot do much at this point. Most mortgages have to be 90 days late before foreclosure proceedings can start. Now your at 5 months. The lender contact you and an attorney to advise foreclosure proceedings are starting. Papers have to be file with the courts, docket set, auctions held. Your at about 10 months.

So mortgage companies are loosing big time. The number of homes being foreclosed is more than any lender can afford and still stay in business. So Feds (US) get to give them $41 bil and hope this helps. What happened to the other $48 bil that we gave a few months ago. Did that help? Does not appear so. Might as well just burn the money or throw it away for all the good it is doing.

Take CEO of Countrywide. He saw it coming, decided to sell of stocks ($100 mil worth). Feds did nothing. To me that is a huge flag that something was not right. IE ENRON. Months later after this CEO has made $100 million, Congress has now asked that he be investigated. What are they thinking? Should he be found guilty of anything, he'd have to pay the money back, I bet it will be no where to be found. So he gets to sit in jail for awhile, comes out and he is a millionaire.

ml-implode.com

There is no fix for the mess that has been created that I can see. Besides mortgage lenders collapsing, check out the price of gas. The meager cost of living raises that people receive in no way covers the increases in daily expenses. Food is higher, heating homes cost more. Im just glad my husband was able to grow a nice garden.

Sub-prime lending is screwing over a lot of people right now. I know a lot of people using credit to pay for credit basically. My parents taught me if you don't have the money, you don't get it. I don't really like using the card, but its easy, efficient and all that other stuff, but I don't use it if I can't pay for it. My uncle, the opposite of my mom, is the exact opposite. He's probably one of the main reasons why the country is in its mess right now. People like him living above their means is dragging this country down. And then you throw in food and energy going up, it's a recipe for disaster.

I remember a lot of people telling me how easy it was to get a home, basically 0% down or whatever. I know have a drug dealer living down the street from me and all other kinds of idiots spread in and around my neighborhood. It's harder to get into an appartment than a house, or at least it was. I guess CFC decided they would be able to cover those cost by using an economies of scale type procedure that just blew up in their face and many other companies. Ya the CFC CEO selling his stock was a big red flag that the government didn't seem to care about. I just listened to people from the SEC talk about schemes and things like that, especially Enron, yet they let this guy make his money first; now, thats not to say that if they find something on him, they can actually take it away and stick him in jail, however, I'm not sure he's done anything wrong but make really bad business decisions, but, investigations will show this.

With Exxon losing 10% off where they should be, maybe gas will start to come down. I use to buy there, but, it was 20 cents cheaper at say Racetrack or QuickTrip. I think a lot of other people have done this too, they're always full when I go there. Maybe if the economy slows down, prices will come down as well, otherwise we'll see more foreclosures because people sure aren't making more to compensate for the increases.

I can't say for sure that this will blow over. I know right now my Dad has money to put into the market, he wants to go into mutuals, I said stocks. Why not? Me and my Mom just had a conversation over stocks being on sale, she laughed, but it's no joke. I told her, even though I'm leary on them, Bank of America. They are a pretty sound company that wasn't effected to bad by the credit crunch; they gave $2 bil to CFC, and, Bank of America does pay a nice dividend. Now my parents being older, they have the risk issue, but, right now seems like a good time to be buying stuff thats down. Personally, even though I'm young, 23, I'm in the market for the long term. Even though there are going to be some rough spots in the market, I think in the long term, things will work themselves out. Of course, this depends on whether the credit market has got its stuff togther.

But on the brightside pay day loan advances are a booming. Welcome to the soup kitchen line. How are ya Fred? Bush/Cheney, they love us. So much so they pumped a trillion into Iraq AKA Halliburton and Blackwater so we could bring democracy to everyone. I think Kucinich is on to something, the man is truly deranged. I want a presidential peecup to test for syphillis.

Not to get to far off the topic, but ironically I was reading about syphilis tonight because I was watching TV and how it messed up so many people and made them do such stupid things. Can't say that I know much about Kucinich, all I know is I like Ron Paul and I know one candidate is a Mormon. And I'd hate to be in a soup line, mainly because I don't like soup. Hope that the market doesn't make us come to that.

Have you ever seen Jimmys concert at Berkely in 1970 on dvd.
Kind of like right now politically. Star spangled banner right into purple haze. A political statement? I wonder...

[edit on 1-11-2007 by u4itornot]

thats nothing,northen rock,ONE english bank has been lent £23 billion pounds over the past month in emergency government funds.

thats £730 for EVERY british tax-payer.

Well if you've ever looked into what Lindsey Williams or John Perkins have been saying,
www.reformation.org...
en.wikipedia.org...

it seems that the US has been maintaining it's empire by forcing third world countries and oil producing nations to do business in dollars, buying US debt and services from US companies in exchange for nice kickbacks to the leaders in question. This has allowed limitless US deficit spending.

Unfortunately the whole system is unraveling now. However I believe it is unraveling on purpose, not by the happenstance of bad foreign policy. Those who really control the financial strings are internationalists or globalists and are not really concerned with what happens to the US or it's people. They've created and exploited third world hell holes before and are perfectly happy if the US just becomes another third world hell hole to exploit. They can move the center of their financial operations overseas and work with real currencies if they so desire.

I believe they are crashing the system now on purpose. Once we go into a major recession, and our credit is worthless, they will be able to snap up US businesses and natural resources at a fire sale. The US populace can enjoy the slavery that they've have promulgated to the rest of the world for so long. You might say it's their just desserts, but really it's the result of a cynical policy aimed at world domination for just a handful of individuals. Our government and press dare not fight them, due to their own moral failure and cowardice.

Other than that I wouldn't be alarmed.

Now, now. Nike wouldn't REALLY employ minors in asiatic sweatshops to sell 200 dollar tennis shoes to America now would they? Should have converted to euros and gold years ago like Buffet. What a moron I am!

news.yahoo.com...;_ylt=ArbLaQTl1.kdivOea4S9608E1vAI

Employers added a surprisingly strong 166,000 new non-farm jobs in October, well ahead of forecasts in an early sign that consumer incomes may be better supported than thought heading into the fourth quarter, according to a government report on Friday.

Right…. We’re all gonna die. All the bad news is true and all the good news is lies.

There a thread on this online insane asylum stared two years ago claiming an American economic collapse was “imminent”. I guess author has a more geological notion of “imminent”.

Meanwhile most American are richer than they were 10 years ago and they be richer still 10 years from now. I’ve stayed in the markets and I’ve gotten a LOT richer.

"I’ve stayed in the markets and I’ve gotten a LOT richer."

----------------------------
at the expense of the US Taxpayer, and the blood and sweat of close to slave waged labor from other countries....
ya, I'd be proud too!!!

what is good for the markets and big business, isn't necessarily good for our country...
and this administration seems to be more inclined to destroy the country for the sake of their precious markets and big business.

more power to them, just hope they remember, the more the wages in this country decrease, or even stagnate while the price of everything increases, the less taxpayers there will be, and the more dependents the government will be charged with taking care of through their social services...
sooner or later, the only ones paying their taxes will be the big businesses...and then we'll see just how loyal the business world is to their old friends who were so willing to freely give them the state treasury!

by the way, I don't see how you can say that most americans are richer today, when most americans are up to their necks in debt.....or are you just looking at one side of the balance sheet?


[edit on 2-11-2007 by dawnstar]

reply to post by dawnstar


I am proudly a capitalist because capitalism is the most moral way of distributing goods and services in an economy and makes everyone who participates in it richer. The citizens of capitalistic countries live longer, healthier and wealthier lives. Absent the “sweat shop” jobs you dopes bleat about, these people would have NO jobs.

Painting Barbie dolls might not be your or my idea of self actualization, but for a Chinese present who’s only other alternative is another “Great Leap Forward”, it’s the best thing that ever happened to him.

Not to long ago, South Korea made shoes, shirts and tchokeys, now they make electronics, autos and steel and the South Koreans are richer and healthier for it. In your stupid world, these people would have never been allowed to progress, in fact there’s a perfect model of your stupid “moral” world. It’s just to the north. Can I look forward to your post card from there soon?

I agree dawnstar is not the regular joes like you or me the ones reaping the sell out of good old America but the corporate barons.

People really are confuse when it comes to who hold the wealth in this nation.

We are nothing than slaves to this people and the only ones losing our jobs and homes to their bad deals while trying to get richer all at our expenses.

US Economy Grows 3.9%…More Proof That Numbers Lie
Posted by Bill Bonner on Nov 2nd, 2007

www.dailyreckoning.com.au...

People do not get it, numbers are the biggest lier than there be and the easiest way to keep the population confuse.

Numbers can be manipulated to fix everyone and everything, But what numbers can not do is cover up the state of our nation when you are out there fighting inflation and trying to survive after losing you home and be in debt up to you neck because your good pay manufacturing job is gone to India or China and all you got is Wal-mart.

This are the real numbers that nobody counts, we live under a lie and the lie can be pushed just su much and so far.

All the fed is doing is to keep the big barons at float so the numbers keep looking like nothing bad is happening . . . just a slow down here and there nothing to worry . . .