dow predictions for 10/16/2008.

reply to post by LowLevelMason


I thought the Treasury announced they injected funds immediately, as of Monday. This was revealed when Wells Fargo said they initially declined the money offer from the Treasury, but was forced to accept it.

Well I was sure off. Almost a mirror of the day to be exact. There's no wrangling this snake.

Originally posted by LowLevelMason
I knew it! So predictable. No, you're wrong.

Not a dime of the $700 billion has been spent yet, so NICE TRY.

Get your facts straight and stop guessing

The public monies that are being directed to private financial institutions are huge. According to news reports, Germany is devoting$540 billion to shoring up German banks, England is devoting $73 billion, and France has pledged over $400 billion. The U.S. now has four separate bailouts underway, $800 billion for banks, $200 billion for Fannie Mae and Freddie Mac, $85 billion for the insurer AIG, and $25 billion for the U.S. auto industry. These figures add to more than $2.1 trillion.

Some of these public monies are for purchasing troubled paper assets. Others are to be directly injected into the banks as public supplied capital for private financial institutions, an ironic outcome for the free market ideology that resulted in the deregulation of the U.S. financial system. According to news reports, in England the entire $73 billion is being poured into banks as publicly supplied new capital. In Germany $135 billion is for recapitalizing troubled banks. In the U.S., Treasury Secretary Paulson is talking about using bailout money to purchase non-voting bank shares.

www.economyincrisis.org...

The only mistake I made was that is not 2.7 trillion been used but 2.1

reply to post by MOFreemason


The money is a done deal the only problem that the fed may be having is getting the trouble nations that are our lenders into backing up the bail out with buying US debt.

reply to post by LowLevelMason


I forgot to add, up to the day the bail out was passed already congress used 900 billion for the markets.

That is additional to the 2.1 trillion that already is been allocated for the banking institutions since the bail out.

Originally posted by jtma508
Thye market will move up some and then there will be more profit taking (the wounded folks getting out with what they can). This process will continue until we approach the end of the day when there will be alot of profit-taking. I'm guessing 400-ish down at the end.

Excellent prediction! The DJIA closed at 401.35. No one in the history of the market prediction has come so close: just 1 point shy of the predicted figure!

I wouldn't worry about the negligible up/down prediction difference. The absolute number is what counts.

reply to post by MOFreemason


The funds injected were not into the stock market, which everyone here is claiming. Also, those funds were from previously legislated credit lines arranged from the federal reserve and not the bailout package money, from my understanding. In the case that it WAS the bailout package money, it still isn't enough to cause the increases were seeing unless the bailout grew to 1.4+ trillion dollars from 700 billion and someone forgot to tell us.

reply to post by LowLevelMason


Thank you for the response LLMason. I appreciate your information plenty!

Originally posted by marg6043

Not a dime of the $700 billion has been spent yet, so NICE TRY.

Get your facts straight and stop guessing

How ironic, you need to get YOUR facts straight.

1) This is from "economy in crises" - a panic and fear mongering website whose sole purpose is to try to cause hysteria by spinning the news.
2) Even in this article, it states that this is for credit liquidity, not stock market options.

You used a biased source, and it was still wrong.

Try again. Keep trying to figure out how this is possible

You either have no knowledge of economics or your being intentionally deceptive in order to plow through your views - credit line liquidity money has no impact on the stock markets. They go up or down, regardless.

[edit on 16-10-2008 by LowLevelMason]

reply to post by TXPatriot38


Then you really need to go back in my post history. I post whenever I have free time. It doesn't matter what the stock market looks like.

The fact is that short term down swings or up swings in the market mean nothing because the stock market is not a good reflection of the economy, and to get a good idea of where the stock market is you need a longer term view than a day or even a month. However, the fact remains that there are those who claim somehow every day that it goes up is somehow government manipulation, and every day it goes down is somehow legitimate. They are wrong.

I know it doesn't make me popular. Whenever everyone wants to believe in economic Armageddon, rationality is not very popular. However, Im here for the truth and not to join in the mob. I stay out of the bulk of the economic threads simply because I know its not going to go anywhere, but every now and then the level of hysteria and panic is so high in them that I do post. If it makes you feel better, I'll stop posting in this one though and everyone can convince themselves this was all government manipulation Have fun...

Oh and MOFreemason: your welcome.

[edit on 16-10-2008 by LowLevelMason]

Originally posted by LowLevelMason
reply to post by MOFreemason

 

The funds injected were not into the stock market, which everyone here is claiming.

Thanks. I always wondered how a total collapse of reason would look like.

reply to post by Mainer


Volatility is simply a symptom of the problem.. we have never had a recession with out volatility.. ups and downs show a reactionary and fearful market..

Originally posted by MOFreemason
reply to post by LowLevelMason

 

I thought the Treasury announced they injected funds immediately, as of Monday. This was revealed when Wells Fargo said they initially declined the money offer from the Treasury, but was forced to accept it.

Treasury purchased Preferred Stock, not Common Stock.. won't effect stock markets directly, as the Preferred Stock will not be volatile, it will be percent earned..

It's just supposed to make the markets seem "more secure"..

Europe, to my understanding, has also only purchased Preferred Stock Options.

Basically... no Government has directly injected money into the Markets.. they just did a shadowy behind the scenes take over of the banks..

Originally posted by stander

Originally posted by LowLevelMason
reply to post by MOFreemason

 

The funds injected were not into the stock market, which everyone here is claiming.

Thanks. I always wondered how a total collapse of reason would look like.

Your seeing it on ATS with all these hysterical threads about the economy.

Stock market fluctuations, up or down, in a short time period, mean nothing...

The one exception would be a crash, but we haven't had one yet and likely will not, despite what many here want to happen...

[edit on 16-10-2008 by LowLevelMason]

reply to post by Rockpuck

Rockpuck, we must devise a complex financial instrument to enrich ourselves filthy. Any idea?

Originally posted by Agit8dChop
If there's no presidential speech or initiatives given before the US opens, im guess another major fall, 500+

Dang, what a stupid estimate! ;P

You know, the dow was down 2% when I went to bed last night,

yet it rose 400 something points.

there wasnt any news, or any plans put forward, there was no reason for it to jump like that.

Here's hoping, that I think this could be the first signs of life in the DOW, for some time.

It kicked last night, and did what most didnt expect, and it did it in fashion on its own steam.

maybe we have bottomed out?

reply to post by stander


WHY YES I DO STANDER!

We create mortgage backed securities to back the capital that is being injected to back the mortgage backed securities! And the profit we generate, we sell securities on those profits to buy mortgages to flip!

IT CANNOT FAIL!

You in my friend?

Originally posted by Rockpuck
reply to post by stander

 

WHY YES I DO STANDER!

We create mortgage backed securities to back the capital that is being injected to back the mortgage backed securities! And the profit we generate, we sell securities on those profits to buy mortgages to flip!

IT CANNOT FAIL!

You in my friend?

Rockpuck, I brainwashed myself into believing that a complex scheme is the best way the feed the piggy bank, but now, after having studied your proposal, I came to an irreversible conclusion that SIMPLICITY spells success. I'm simply in.

I was hard at work devising too: Watching yesterday's market close, I began to toy with an idea to sell insurance (lots of fine print) to protect the 401k against undue losses. The price of the premium would be adjustable according to the market level. In times like these, folks who have 401k are the target population. And then . . .



What is the chance that DJI ever drops bellow 20 points and the insurance money would have to be paid out?