Dow Crash Coming To Your 401K (2007 to 2022)

[Neurotoxin]

gbers............in an to attempt to save the market from imploding, bogus CPI numbers were released today. read the bloomberg post below and determine if it makes any sense in the world you're living in. fuel costs dropped ? listen guys, this report now allows the Fed to lower interest rates again.....w/o the fear of inflation. 


NT


March 14 (Bloomberg) -- Consumer prices in the U.S. were unexpectedly unchanged in February as fuel costs dropped, easing concern that inflation would keep accelerating as the economy slows.

The steady reading in the cost of living index followed a 0.4 percent gain in January, the Labor Department said today in Washington. So-called core prices, which exclude food and energy, were also little changed, the first time they didn't increase since November 2006
 

[stormshadow]

gbers............in an to attempt to save the market from imploding, bogus CPI numbers were released today. read the bloomberg post below and determine if it makes any sense in the world you're living in. fuel costs dropped ? listen guys, this report now allows the Fed to lower interest rates again.....w/o the fear of inflation. 


NT


March 14 (Bloomberg) -- Consumer prices in the U.S. were unexpectedly unchanged in February as fuel costs dropped, easing concern that inflation would keep accelerating as the economy slows.

The steady reading in the cost of living index followed a 0.4 percent gain in January, the Labor Department said today in Washington. So-called core prices, which exclude food and energy, were also little changed, the first time they didn't increase since November 2006
 

Nice, I made a seperate post for it, I should have included it here.

[Neurotoxin]

gbers........



Is the US Consumer Giving Up ?


Yesterday’s retail sales numbers constituted a negative surprise for markets and a booster for recession fears.   Retail sales fell 0.6% in nominal terms with autos and restaurants leading the retreat; and in real terms the fall was even greater as inflation is eroding real spending power.   A U.S. consumer whose debt-to-income ratio rose in the last 6 years as much as in the previous 39 years is facing the highest debt-service ratio ever while the supply of credit is diminishing and its assets are depreciating.  Is it really a surprise to see the U.S. consumer on the ropes and retrenching its spending?



NT

[Neurotoxin]

gbers....


March 14 (Bloomberg) -- Harvard University economist Martin Feldstein said a six-year U.S. economic expansion has ended and the downturn could be substantially worse than past contractions.

``I believe the U.S. economy is now in recession,'' Feldstein, president of the National Bureau of Economic Research, said in a speech at the Futures Industry Association conference in Boca Raton, Florida. ``The situation is bad, it's getting worse and the risks are that the situation could be very bad.''






NT

[Neurotoxin]

gbers.......



NEW YORK (CNNMoney.com) -- Stocks tumbled Friday after news that Bear Stearns needs emergency funding due to a liquidity crisis intensified fears that the credit crunch is spreading.


The Dow Jones industrial average (INDU) lost more than 194 points.The Standard & Poor's 500 (SPX) index lost 2% and the Nasdaq composite (COMP) lost 2.2%.


NT

[Neurotoxin]

gbers.........



Bloomberg March 15, 2008
The Federal Reserve’s unusual decision to provide emergency assistance to Bear Stearns underscores a long-building concern that one failure could spread across the financial system.

The sudden collapse of a major player could not only shake client confidence in the entire system, but also make it difficult for sound institutions to conduct business as usual.

 The Fed’s action was intended simply to keep the financial markets functioning. Since various trading markets seized up in August, credit conditions have steadily worsened, and interest rate cuts, the main tool central bankers use to bolster the economy, have become less effective.




gbers.......i cannot stress this enough, please be very careful in this market environment. as i've stated previously, any and all "rallies" will be sold off. do not get suckered in by any of the talking heads on TV who say "the market has bottomed". their job is to get you to buy, buy, buy. DO NOT LISTEN.



NT

[Neurotoxin]

gbers.............the fed is lost and desperate.


Bernanke Discards Monetary History With Bear Stearns Bailout



March 15 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke is being forced to throw out four decades of monetary history by a financial system choking on miscalculated risks and a deepening recession.

Bernanke and the four Fed governors voted yesterday to become creditors to Bear Stearns Cos., a securities firm that isn't a bank, by invoking a law that hasn't been used since the 1960s.  



NT

[Bindare_Dundat]

Isnt this the same as Northern Rock Bank?

[Neurotoxin]

Isnt this the same as Northern Rock Bank?

yes, different continent.......similar scenario.

[War-Horse]

Just allowing one even one large Bank a bailout is going to lead to many more.  Theyve seen the fed deal its hand, and so they are going to push their chips in the table too....

[stormshadow]

Just allowing one even one large Bank a bailout is going to lead to many more.  Theyve seen the fed deal its hand, and so they are going to push their chips in the table too....

These are exciting times, even though I am in a serious pinch myself because of the credit crunch, it is still fun to see it all unwind.

[Bindare_Dundat]

These are exciting times, even though I am in a serious pinch myself because of the credit crunch, it is still fun to see it all unwind.

You self punishing sicko. 

[War-Horse]

These are exciting times, even though I am in a serious pinch myself because of the credit crunch, it is still fun to see it all unwind.

It really is.....its like a train wreck.......You cant help but watch.    Its so weird how people like hh6 and brittnyballdawg  just go along acting like everything is fine, la la la la la....    They are fooled into thinking that the adminstration will not do intentional harm...

This is going to be a show on so many levels.   Just yesterday i was tallking to a guy that owns a trucking company...has 3 trucks running for albertsons....well he was saying that legislation is trying to be snuck into law that would give mexico drivers full latitude in america, not just into the border as was heard.

He says no one will be able to compete and has also heard that 3 companies have been chosen to do all the trucking with govt support.  One being "Swift trucking" cant remember the other 2.

I asked him what his plans are when this hits? he said well....hopefully ill have little debts at that point and can scale down since ill have no choice...

[Eyeball Chambers]

What is your opinion on putting your cash into Gold?

[Bindare_Dundat]

Interesting article on CEO wages,



Executives have been defending before a Congressional committee large salaries and pay-off packages earned while their firms were hit by the sub-prime crisis.
Angelo Mozilo, boss of Countrywide Financial, Merrill Lynch ex-head Stanley O'Neal and ex-Citigroup boss Charles Prince all faced the panel.

The three firms were hit by the US home slowdown and subsequent credit crunch.

"It seems that CEOs hit the lottery when their companies collapse," said House Oversight chair Henry Waxman.

'Broken down'

At the opening of the hearing Mr Waxman said: "Any reasonable relation between their compensation and the interests of their shareholders appears to have broken down."

Mr Waxman highlighted the fact that Mr Mozilo received more than $120m in compensation and sales of Countrywide shares in 2007, at the same time that the firm registered losses of $1.6bn.

And Merrill Lynch lost $10bn in 2007, but Mr O'Neal got a $161m retirement package.

Meanwhile, Mr Prince was paid a bonus of $10.4m for 2007 as well as $28m in stock and stock options.

'Proud'

The three told the committee the reasons behind their packages.

Mr Mozilo said his direct compensation and value of his shareholdings fell heavily in 2007 and will not receive a bonus for 2007 and 2008.

"As our company did well, I did well," said Mr Mozilo, founder of Countrywide, the nation's largest mortgage lender.

"But when our company did not do well, as in 2007, my direct compensation and the value of my holdings declined materially, which is as it should be."

Mr O'Neal also said: "I received no bonus for 2007, no severance pay, no 'golden parachute.'

"The amount discussed in the press consisted mainly of deferred compensation, stock and options that I had earned during the years prior to 2007."

"I'm proud of my accomplishments," Mr Prince said, referring to his contributions to Citigroup's growth.

 

[Bindare_Dundat]

President George Bush has attempted to restore confidence in the US economy, amid the deepening financial crisis.
Speaking at the Economic Club of New York the President acknowledged that growth had slowed but said that the economy is basically sound.

He said the economy was "obviously going through a tough time".

Meanwhile, Ben Bernanke, the head of the US central bank pledged to do everything possible to help struggling homeowners hit by the credit crisis.

He said that the Fed "is strongly committed to fully employing our authority, expertise, and resources to help alleviate their distress".

The Fed has already cut interest rates sharply to ease the credit crunch, and is expected to make a further reduction when it meets next week.

Housing problems

The US housing market is in freefall, with prices dropping and repossessions rising.

The remarks came shortly after one of Wall Street's leading investment banks, Bear Stearns, said it needed emergency funding due to the credit crisis.

The president said that the Bear Stearns situation was changing fast, but the US Federal Reserve and the US Treasury had the situation in hand.

He also admitted that the credit crisis is having a knock-on effect to the broader economy by making banks less able to lend money.

"Hard-working Americans are concerned about their families and their bills," the president said.

Consumer confidence slips

That was supported by the latest report on US consumer confidence from the University of Michigan.

Its index of confidence slipped in early March compared to February to near record lows.

"There was nearly unanimous agreement among consumers that the economy was now in recession," said Richard Curtin, director of the survey.

President Bush said that tax rebates agreed with Congress would start taking effect later this year, which should help boost the economy.

A survey of economists by Reuters also suggested that a majority are now predicting that the US economy had moved into recession.

[NubianMuscle]

The Fed has already cut interest rates sharply to ease the credit crunch, and is expected to make a further reduction when it meets next week.

Ben Bernanke won't be happy until he gets the rate down to 1%.

[boonasty]

neurotoxin what would you invest in at this time ive seen you say cash is king but im sorry i havent read the whole thread so i dont know if youve stated your investment suggestion.

if cash is king what are you saying is a good investment as you know the dollar is at an all time low against the euro and the yen

bump for response

What is your opinion on putting your cash into Gold?

he previously stated now is the time to sell if you own metals. dont know if his position has changed

if youre looking at metals i think silver is what you should be looking at more than gold and actually owning the metal not having some house hold it for you will it really be there when its time to collect? these are strange times economically

[Neurotoxin]

bump for response


he previously stated now is the time to sell if you own metals. dont know if his position has changed

if youre looking at metals i think silver is what you should be looking at more than gold and actually owning the metal not having some house hold it for you will it really be there when its time to collect? these are strange times economically

here was my quote on metals:


"if you've been in metals the last yr or so, now would be the time to take some profits."



i never said sell your metals, i said to take some profits if you've been in them the last yr or so. could metals go higher from here ? sure they could, especially with the falling dollar and inflation worries. the time to have bought that sector was well over a yr ago.

jumping in at the all time highs always carries extra risk........not unlike the masses who jumped into the Dow at 14,000, while i was warning of a Dow crash.

buying any sector AT HISTORIC HIGHS is very un-warren buffett like.

keep in mind, the most successful long term traders on W.S. buy when the public is panicked, and sell when the public is euphoric.   





NT







 

[War-Horse]

Silver seems good....people are just starting to notice it as an option to the high price of gold....imho.

[boonasty]

i never said sell your metals, i said to take some profits if you've been in them the last yr or so.

ok are you saying there is a way to take profits from them without selling them




also what would you suggest people invest in at this time? 

[Neurotoxin]

Silver seems good....people are just starting to notice it as an option to the high price of gold....imho.

a yr ago PAAS (silver) traded at 13.00, it now trades at 42.00


did i buy silver last yr ? yes. would i enter into a new position now ? probably not. if a did, i'd have a very tight stop loss in.






NT

[Neurotoxin]

ok are you saying there is a way to take profits from them without selling them

 

taking some profits and selling your position are 2 different animals.



NT

[boonasty]

taking some profits and selling your position are 2 different animals.



NT

ok so yes you did mean sell some.  i thought you had some secret to take profit without selling damn

[Neurotoxin]

ok so yes you did mean sell some.  i thought you had some secret to take profit without selling damn

listen, here's the dilemma. although i expect gold/silver and other metals to probably head higher with big ben managing inflation and the falling dollar. i'm just personally against recommending anything at the highs.

i buy at fire sales......i sell at parties. 




NT