Dow industrials fall below 7,000; lowest since '97

Dow industrials fall below 7,000; lowest since '97

news.yahoo.com

NEW YORK – The Dow Jones industrial average plunged below 7,000 Monday for the first time in more than 11 years as investors grew pessimistic about the health of banks, and in turn the economy.

The Dow hadn't traded below 7,000 since Oct. 28, 1997, and last closed below that mark on May 1 of that year. The credit crisis and recession have now slashed half the average's value since it hit a record high over 14,000 in October 2007.

(visit the link for the full news article)

The Dow has lost over half of it's value since Oct 2007. Over half! This is rediculous and its not over.

I would really like to know how the stimulus packages have helped. I can't see any benefit from passing them and bailing out the tumors in our financial system. Cancers like AIG need to be cut out.

I can only imagine what this summer is going to be like. I'm expecting the worse. Between this mess and the mess in Mexico we are looking at a fantastic summer of 2009.

news.yahoo.com
(visit the link for the full news article)

reply to post by MikeboydUS


4000 Dow Jones by August 2009, according to my wife who studies astrology. Bad times ahead, but, with awareness, we can make it thru.
The fear factor is the worst in all of this. Fear is the best weapon to bring a country to its knees...

Originally posted by teklordz
reply to post by MikeboydUS

 

4000 Dow Jones by August 2009, according to my wife who studies astrology. Bad times ahead, but, with awareness, we can make it thru.
The fear factor is the worst in all of this. Fear is the best weapon to bring a country to its knees...

I plan on being very aware and prepared. It may be a good time for community organizations such as churches to really prepare for the summer. If no such community organization exists it would probably be a good idea for people to form one.

The whole lone wolf surivival-emergency preparedness stuff is not realistic. Community organization would help alleviate the fear that will cripple communities that are not organized.

Originally posted by teklordz
reply to post by MikeboydUS

 

4000 Dow Jones by August 2009, according to my wife who studies astrology.

I thought that both were correlated somewhat, and that the ancients used astrology to understand many of life's mysteries (that and mathematics).

I'd be interested in knowing or learning what technique or values are used here - I.e. what exactly is she looking at here (alignment patterns)?

BTW, yes, DJIA in a bit of a pickle at the mo with no bottom in sight!

yes, i agree. Cooperation is the key to survival, and better start now than later. I have some insights of the future, and cooperation is part of them. We won't have any choice, and small communities will pop-up all over the place.
Cheers!

Originally posted by MikeboydUS
Cancers like AIG need to be cut out.

Don't get me wrong, I agree with you. But AIG guaranteed a bunch of other banks and if AIG fails, they all fail. Would that be such a bad thing? Not for me, but for all those who have their life savings in those banks, it would be.

I don't expect we'll see the bottom of this till close to the end of this year. It's too bad we're dumping $$ into AIG and the like who are going to eventually fail anyway and take that $$ with them. But people in high places can't seem to deal with the alternative.

I'd rather cut sure and quick than to drag it out like this.

My brother, 59, just lost his job.

Here in Canada the TSX is down almost 400 points today. Indirectly TSX's momentum should transfer over to the Dow and vice versa.

It doesn't seem like a single market across the globe made any gains last night, combine that with the news out of AIG and it should be a bloodbath today.


Peace

reply to post by Benevolent Heretic


If I had money in a bank insured by AIG, I would be getting out.

If the "bailout" does anything at all, it is giving people time to move assets around before the ship sinks.

I am sorry that your brother lost his job. I have had some family members go though some crazy stuff related to this as well, a niece whose house has been foreclosed and a nephew who is in the process of losing his home.

[edit on 2/3/09 by MikeboydUS]

Originally posted by Breifne

Originally posted by teklordz
reply to post by MikeboydUS

 

4000 Dow Jones by August 2009, according to my wife who studies astrology.

I thought that both were correlated somewhat, and that the ancients used astrology to understand many of life's mysteries (that and mathematics).

I'd be interested in knowing or learning what technique or values are used here - I.e. what exactly is she looking at here (alignment patterns)?

BTW, yes, DJIA in a bit of a pickle at the mo with no bottom in sight!

ok, here's the thread where my wife is discussing about this topic.
Just ask her and she will be happy to explain it to you. There is a graphic of August 29, 2009.
She's really good at this, but i'm just a beginner, so i can't really answer this question you asked.

Well with the Stimulus being signed today with all its pork spending it will rise slightley like always, but I see it tanking in the near future, it goes with the whole United States Federal Government Financies tanking mid 2009

Germany's MDAX is down 10 %.

Thats a monstrous drop when you consider the global avg decline last night/today was around 3 - 5%.

Any Germans care to post on whats going on over there?

Peace

Scary stuff indeed. There's a reason I pulled out of the market at 13,000. What's even scarier is the people that think this is temporary and everything will go back to normal very soon.

teklordz

Thanks for the link. I have flagged the thread for later. Looks interesting (as does the time line)!

Cheers.

reply to post by Breifne


You are most welcome. She's really the best at this stuff.
And what's really neat is the quote at the top of her thread.

"Millionaires don't use Astrology, billionaires do." — J. P. Morgan

reply to post by CeltAngel


There's a reason I pulled out of the market at 13,000.


Whats that? Most people would've been caught up in the momentum of the never ending DOW growth, what gave you the sign to pull out?

Peace

FTSE closed down over 200 points, and the DOW is down over 200 last i saw, looks like the money our government have ploughed in so far has just been squandered.

If we took 16 years to get to the position we currently find ourselves in, how and why does anyone think or believe a stimulus passed a few months or few weeks ago can make any significant or change immediately?

You can't spend 16 years digging a hole and then expect to fill it overnight. Be it Obama or Bush or Ron Paul in charge it would make no difference right now, this is a long term situation that we are in and unless we look beyond right now, we're only going to be making the hole bigger.

btw I expect to see a dead cat bounce either before today is over or within the next day or too, before the downwards trend resumes. Imo, we're being eased gently towards the bottom, manipulated to prevent a huge one day crash.

edit because my thinking is once again faster than my typing...

[edit on 3-2-2009 by worldwatcher]

The DOW has followed a pattern of the "hockey stick graph".

Back in 1982, the DOW was below 1000 points. Since then it has reached 14,000 at its peak.

I know gravity doesn't normally apply to financial equities, but its true that what goes up must come down.

This is healthy in my opinion. It's healthy to have a new baseline. The process will be painful, but at the other end people will be able to buy reasonably priced equities with real money (as opposed to the market being ramped up and cornered by leveraged fiat money).

Same deal with house prices. Here in the UK, first time buyers will at their teather's end last year with houses being totally unaffordable. For them (including me), the price drops are a welcome respite. Reasonable houses should cost no more than it takes to save up for 10-15 years IMO. We reached the situation where the average house price was over 120,000 pounds sterling. It will only be reasonable when it hits about 70,000 again.

The market knows what its doing. The market knows best. We can argue back and forth, partisan or bipartisan... but the net result is that whatever we do, the market will ignore it. It will eat up trillion dollar stimulus packages and spit it out again. And it will only correct itself when it is ready to do so, and when it does correct itself we will have a more prosperous stable era reminiscent of the 1950s and 1960s.

reply to post by worldwatcher


I'm not sure where you get this 16 year figure from? If anything your 16 year figure is just a set within a larger set. I'm more of the opinion our current fiat system that originated after the dissolution of Bretton Woods in 71 or 72 is the set we are currently in(but still a set of a larger set).

Be it Obama or Bush or Ron Paul in charge it would make no difference right now

Couldn't disagree with you more, under Ron Pauls "Do nothing let the markets decide whats toxic or not" attitude the markets would be much lower than they are today.

Bush and Obama are approaching the problem like a heroin addict approaches their addiction. "Maybe if I give myself just one huge hit, I wont ever need it again".

Ron Paul understands you will have the shakes and the sh*ts and through that understanding would've arisen a stronger foundation for the economy to grow off of.

Peace

[edit on 2-3-2009 by TheRealDonPedros]