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alstry (36.32)

Dow's best week since 1932

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November 29, 2008 – Comments (4)

This was the headline from Marketwatch.  Bloomberg says since 1974.  Alstry says whoever is right, it was fantastic since it was only a 3 and 1/2 day week.  Now the question is where are we going.

Some say up....some say flat.....others say down.

Whatever the direction of the market...the fundemental economy is about to enter into a rapidly expanding adverse feedback loop.  Politicians will panic and say no one could have predicted.  Economists will be scratching their heads.  Business leaders will act surprised as they quietly count the dollars they raised from exercising options over the past few years and selling the public their shares.

Here is a fun quote from the CEO of CBRE...a very large RE firm:

"Conditions have deteriorated on a scale and with a speed that no one could have predicted just a few months ago."

http://calculatedrisk.blogspot.com/2008/11/cb-richard-ellis-cre-conditions-have.html

Do you sometimes ask yourself who is kidding who????  Some of us on CAPS have been warning you for months about EXACTLY how bad things were going to get.....and now they are about to get a lot worse.....at a lot faster rate.

We are going to be asked give up things and take steps to degrees that none of us have seen before.  Just get ready to hear the pundits say they have no choice and were shocked to be in such a position.

It is not the end of the world....just the beginning of something completely new.

4 Comments – Post Your Own

#1) On November 29, 2008 at 12:22 PM, johnw106 (63.03) wrote:

While I dislike the right wing nut ramblings of people like Rogers and Faber who offer no solutions, but love to moan and complain, I think we are headed for a cataclysmic change my self.

A dramatic and sudden shift in wealth. From the ultra elite into the hands of the middle class. People will wake up to the fact that saving is a good idea and debt is bad. That it is better to pay cash than 28% on a credit card. That you really dont need a  $ 50,000 BMW to drive the average of 40 miles a day to get to work and back, that a 20,000 EV/ hybrid or econo car will do the same job much cheaper over the years.
That most of the financial system is filled with leeches and ticks that produce nothing of value and are a drain on societys well being as they siphon off wealth they do not deserve and that we do not need them to manage/steal our money.

I also hope and pray Obama was serious about reducing the power of lobbyists. These special interest groups along with the unions are another form of tick that needs to be eradicated with extreme prejudice.

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#2) On November 29, 2008 at 12:38 PM, Daretoth (< 20) wrote:

johnw106, 

Obama will increase the power of government, not reduce it. From the looks of his "revolutionary" staff appointment we are not changing anything in the terms of the lobbyist power. There is a change coming, but it's not the one you want or think is coming. The shift in money will be away from the middle class because as the government continues to print more and more they are devaluing you dollar and giving the more valuable dollars to the banks and special interest groups who see the money long before it gets down to the middle class.

I hope you are right though. I hope people wake up and start living within their means....maybe the government would learn from the middle class if they did that. Unfortunately our economy runs on too much credit and overspending. And as I have been saying for months now:

The economy doesn't run on hope.

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#3) On November 29, 2008 at 1:15 PM, jdgee2 (< 20) wrote:

I also hope and pray Obama was serious about reducing the power of lobbyists. These special interest groups along with the unions are another form of tick that needs to be eradicated with extreme prejudice.

 Wow... I sincerely  feel really bad for people who believe that. I'd love to see less lobby groups and union growth, but wouldn't / couldn't bet a wooden nickle (based on what Mr. Obama is saying), that it's going to happen.

Best Wishes,

Jon

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#4) On November 29, 2008 at 2:03 PM, jegr5347 (< 20) wrote:

The approach the goverment is taking to resolving the economic decline is terribly flawd. Facilitating consumer borrowing and spending via the Fed and TARP will only delay the inevitable and get us back to square one. The country as a whole must pay for the excesses of the past via fiscal restraint and updated regulations. Government spending must be targeted away from entitlements and toward clean energy technologies, preventive healthcare, education and infrastructure spending. Those sectors hold the key to employment growth and without employment growth, we are going nowhere.

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