It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
I can see your point there. But then why the screaming urgency expressed by everyone from the President on down?
Why not just insure the 401s and the pension funds and let the market find it's new level?
Why was the extended time period opened up in the first place? I am not too familiar with how this all came about, has it always been there? Was it in response to the internet opening up another avenue of trading?
Man selling car for $100 February: Astrologer Evangeline Adams, who counts Charlie Chaplin, Mary Pickford, and J. P. Morgan among her clients, predicts the market will rise in the coming months.
March 4: President Herbert Hoover is inaugurated. Nicknamed "The Great Engineer," the former geologist and mining engineer takes office amid booming prosperity. During the campaign, he has promised: "We shall soon, with the help of God, be in sight of the day when poverty will be banished from this nation."
March 8: Michael J. Meehan begins one of the most successful brokerage pools in Wall Street history. Over the next ten days, he drives the value of R.C.A. stock up almost 50%. In today's money, his pool will make the colluding investors $100 million.
March 15: Newspapers quote Treasury Secretary Andrew Mellon saying there are bargains to be found in the bond market. Wall Street is in the midst of a buying frenzy. As the market rises, some begin to fear it will soon collapse. The Federal Reserve Board meets, but does not make any public statements.
March 25: A mini-crash begins as investors start to sell, revealing the market's shaky foundations. For the many people playing the market with borrowed money, the day is a disaster, as margin calls wipe out their holdings. While the investors seek to borrow more money, interest rates soar to 20 percent. The New York Daily News calls it a "selling avalanche."
March 27: Banker Charles Mitchell announces that the national city bank will provide $25 million in credit to stop the market's slide. His move stops the panic, and call money declines from 20 to eight percent. Senator and former Treasury Secretary Carter Glass calls for Mitchell to resign from his post on the Federal Reserve Board because of his intervention in the market.
Spring: The American economy shows ominous signs of trouble. Steel production is declining, construction is sluggish, car sales are down, and consumers are building up high debts because of easy credit. Yet the stock market continues its upward momentum, heedless of real economic indicators.
May 14: The N.Y.S.E. opens a new bond room, adding 6,000 feet to the trading floor.
Summer: The market continues to rebound, and stocks hit record levels month after month.
August 17: Michael Meehan's brokerage firm launches a new service: an office aboard ocean liners, including the Berengaria. This convenience allows transatlantic passengers to buy or sell shares during the weeklong passage between the U.S. and Europe.
September 3: After a surge of optimism, the bull market reaches its peak -- the Dow Jones Industrial Average closes at 381.17. A newspaper headline trumpets, "Public Demand for Stock Appears Insatiable."
September 5: Bearish economist Roger Babson gives a speech, saying, "Sooner or later, a crash is coming, and it may be terrific." He has been delivering this message for two years, but for the first time, investors listen. The market takes a severe dip, which will be called the "Babson Break." The next day, prices will stabilize, but the collapse has begun.
Mid-September: The market fluctuates wildly up and down.
October 24: "Black Thursday." The economic bubble finally bursts. Stock prices fall sharply on a day of heavy liquidation. Ticker tape runs four hours later than normal at a volume of 12.9 million shares. Headlines will report the market's paper loss at $5 billion. A pool of bankers act to stem the drop by putting more money into the market, and President Hoover reassures Americans that U.S. business is sound. Within a few days, a headline will read, "Brokers Believe Worst is Over and Recommend Buying of Real Bargains."
October 28: "Black Monday." The stock market falls 22.6%, the highest one-day decline in U.S. history. The crash triggers similar declines in markets around the world.
October 29: "Black Tuesday." Panic sets in as investors all try to sell their stocks at once. Over 16 million shares of stock are sold, setting a record -- and the market records over $14 billion in paper losses. Stock tickers cannot keep up with the heavy trading volume. At the end of the day, the market is down 33 points, more than 12.8%. Some of the nation's financial elite, including General Motors' William C. Durant and the Rockefeller family, show confidence by buying stocks, but their efforts fail to stem the tide.
November 23: After weeks in freefall, the market hits its bottom and stabilizes. The New York Times reports, "Regular Schedule to be Resumed, but Trading Will Be Suspended Last Half of Week; Business Nearly Normal." The market's daily volume is at 3 million shares with "orderly although irregular" prices.
Originally posted by Rockpuck
I know of only one person who actually lost over 100k+ more then what he originally put in.. he lost it all in 2000 I believe, dot com bust.
Originally posted by Rockpuck
Bank of America
These banks will not fail (though Citi is highly unstable) .. all of these banks (aside citi) are trading at respected levels given circumstances..
WaMu and Wachovia both needed massive infusions of cash to stay alive.. they didn't get it, and they failed.
Citi needs a MASSIVE infusion of cash.. or they die.. they had to pay the FDIC 12 billion in assets, had to cover all POTENTIAL losses, and had to take on $48 billion dollars of losses over the deal..
Originally posted by NGC2736
See, it's questions like that which make the average Joe question the rational of forking out $700B, which may only be a band aid applied to gutshot mule.
Originally posted by NGC2736
reply to post by bruxfain
I can see the "war" idea. But it's the blood(money) of living breathing taxpayers which gets shed in this carnage. It makes it easier to understand the feelings of most of France during their "Time of Troubles", when the nobles and the rich met grisly fates. (Not advocating or condoning such things, mind you, but understanding the mindset of the times.)