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Stock market crashes, and links. Will the market rebound?

Stock market looks poised to crash again December 12th as a $50 billion dollar ponzi scheme is exposed.  Jim Cramer has called out the Securities and Exchange Commision for failing to enforce the law, failing to stop market manipulation and conspiracy by hedge funds out of control.   The markets unfriendly nature is driving money out of the market and keeping participation low.   The job picture is also getting worse with jobless claims hitting a 17 year high for unemployment benefits filed in a single week at 577,000 new applications.   

Stock market crashed 444 points November 20th 2008 to Dow 7500 today, and looks poised to go lower as the market rarely bottoms on a Thursday.   Markets typically bottom on Monday morning.   Dow 6800 stands out in my mind as a low from the early 1990’s.  I believe that more accurately compares to the economic uncertainty facing the world going forward.  Jobless claims hit a 16 year high.  Possible even lower if any major unexpected   To be honest with the continued destruction of jobs around the world; complete disregard for balancing the budget or impossible task, and environmental concerns of the world it is hard to believe that change will not occur.  Karl Marx the socialist recognized as one the great minds of Economic study predicted capitalism would come to an end as the capitalist systems fails to be able to meet the worlds needs. 

   This types of thinking typically occurs along side of great fear in people at the bottom of capitalist markets; but, this time may be different.  Technology advancements have allowed us to do so much more with so much less.  The work of one hundred men can be done by one man in many areas of business.  So clearly a more responsible society would disregard or accommodate business’s that continue to allow us to raise standards of life while achieving sustainability with the environment.  In order  not destroy the planet for future generations.  Many corporations across a wide spectrum of industries are closing up shop or will in the next twelve month’s due to negative margins and a negative market out look.  

 October 10th 2008 comments – Why does the market crash every day? The market can go to zero.  If people  want the money, and the system becomes insolvent.  Stocks can go much lower.  Cities ask when will the credit markets reopen for city bonds.  That is laughable in a way.  Why would someone buy debt in a system that is capital isolated, and losing money increasingly as far as the eye can see?  Stocks that make profits should hold Steady here.  IBM looks way undervalued.  I like Buy IBM at any price, even though,  all stocks go down in a bear market.  With a few exceptions.  Government can step in and manage stock assets in ways that business has failed to do or better align interests in ways that make more sense.  The American government has proposed taking a 79% ownership in the new AIG corporation.   Other than the $440,000 part executives threw to celebrate the recent loans.  Topstockblog see the moves as halfway sensible  with the government ownership.   Why do we have to pay for houses forever?  We don’t.  Why doesn’t George send checks to all Americans.  He has authorization to sign the checks.  A most diversified society is the best one.  That is the American dream.  What are constitutional signers agreed to value above, and beyond greed.

 

(Original June 6th 2008 post) The  U.S. stock market crashed nearly 400 points today http://www.yahoo.com/s/895280  (Friday June 6th. 2008).   The largest increase in jobless claims increase in 22 years, and oil per barrel rising $10 in a single day.  Given the large amount of the increase in oil today, and over the last year oil is probably going much higher.

The stock market was up 200 points yesterday.  Some people had become more bullish on the market going forward with Carl Ichann a major investor reiterating his wish to sell yahoo at a premium of $32.  Interestingly Carl seemed to think $32 was a fair price in part because of the effects of inflation in the future making the premium of $32 a fair price.  Some investors jumped at his latest comments that sent the market up 200 points were now caught long.  The market always is challenging.  Historically the market is very volatile with inflation in the water.

 The Kirk report http://www.thekirkreport.com/    talks about the likely hood of further weakness.  The bottom that many hoped was set in March is probably not the bottom.   With so much trouble in the world and major support being broken putting big doubts in the theory.     I expect more investors piling into oil and out of stocks Monday.  I think the low could be set Monday if the sell off is big enough or some time in the next couple of weeks.

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December 12, 2008 Posted by | Stock investing links, ideas, and opinions. | , , , , , , , , , , , , , , , , , , , , , , , | 3 Comments