Monday, March 2, 2009

Dow: 6,763. Lowest Since 1997.

The Dow has lost more than 22% just in 2009. But it's not just the Dow that tumbled; markets around the world were lower on weakening economies and the AIG debacle. AIG received $30 Billion more in bailout money (#4 bailout) even while reporting the $61.6 Billion largest quarterly loss ever. NYT writer Joe Nocera explains in layman's terms why Treasury won't allow AIG to fail.

It's bad.

The US has the worst GDP since 1982. The nationwide unemployment rate is expected to hit 8% this coming Friday. Economists continue to report that there's nothing positive to say.

How long will this Recession last? Economists respond.

Calculated Risk recaps the February carnage in graphs.

History suggests it's a long road back from a stock crash. Buy and Hold--For Decades?


Mark said...

It's not coincidental that our president and his party's agenda clearly advocates transferring wealth. Investors are bracing for at least four years of taxing and punishing success in corporate America. Banks and car companies who can't run a profitable business will benefit, as will the tens of thousands dependent on the auto industry.
But this is exactly what the people who voted for Obama wanted: the transfer of wealth. "Vote for me and I'll take from the top 5% and give it to the remaining 95% is a very savvy political tactic. Before you dismiss this as partisan rhetoric, look at the "stimulus." It actually had very little infrastructure spending, and its main purpose appears to be to make everyone dependent on government. Then they'll keep voting Democrat.
States getting stimulus money to maintain their budgets? This is insane.
None of this is surprising. We the people were either taken in by Obama's rhetorical gifts, or we actually read his playbook before Nov. 4th and are getting exactly what we wanted.
I just hope "the rich" don't mind continuing to pay for all of this. Sure is nice of them!

Anonymous said...

I didnt think people in Charlottesville were allowed to disagree with Obama policies. Those wealthy people should be ashamed of themselves for being successful. Let's raise their taxes and limit deductions, that'll teach them not to work hard, make good choices, and achieve more than the rest of the government dependents.