kirbypuckett Posted September 30, 2008 Share Posted September 30, 2008 WE ARE NOT GOING TO GO INTO A GREAT DEPRESSION. FUCK. THE MARKET WILL NOT CRASH. In 1987 the Market dropped 22% in two days. Yesterday was FAR from 22%.The SEC placed something called Circuit Breakers in the market, here, now you know what they are. Circuit Breakers The securities and futures markets have circuit breakers that provide for brief, coordinated, cross-market trading halts during a severe market decline as measured by a single day decrease in the Dow Jones Industrial Average (DJIA). There are three circuit breaker thresholds—10%, 20%, and 30%—set by the markets at point levels that are calculated at the beginning of each quarter. The formulas for these thresholds are set forth in the New York Stock Exchange (NYSE) Rule 80B. For example, on April 1, 2007, the average value for the DJIA for the preceding month (March 2007) was used to calculate point levels (rounded to the nearest 50 points). This resulted in the Level One (10%) circuit breaker set at 1,250 points, Level Two (20%) circuit breaker set at 2,450 points, and the Level Three (30%) circuit breaker set at 3,700 points. In order to avoid such crashes in the future, several limits were implemented. They were required in order to calm the market down when it started to get on fire. Some of the restrictions include: 1. If before 2pm the Dow has decreased by 10%, the trading activity will be terminated for one hour. 2. If before 2pm the Dow has decreased by 20%, the trading activity will be terminated for two hours. 3. If the Dow has decreased by 30%, the trading activity will be terminated for the trading day. 4. If very significant events, such as terrorist attacks or natural disasters occur, the market will not be opened at all in order to avoid potential panic. Truth. I don't know why people are freaking out so hardcore. It's bad, yes. It's not completely "we're all fucking gonna die" bad. I honestly feel a better bailout will occur and we'll be right back to shoveling shit. I don't know why everyone is so intent on saying it's the end of the world. Because it scares people and makes them watch the news a little more and all that jazz. Quote Link to comment Share on other sites More sharing options...
dynamitekid Posted September 30, 2008 Share Posted September 30, 2008 WE ARE NOT GOING TO GO INTO A GREAT DEPRESSION. FUCK. THE MARKET WILL NOT CRASH. In 1987 the Market dropped 22% in two days. Yesterday was FAR from 22%.The SEC placed something called Circuit Breakers in the market, here, now you know what they are. Circuit Breakers The securities and futures markets have circuit breakers that provide for brief, coordinated, cross-market trading halts during a severe market decline as measured by a single day decrease in the Dow Jones Industrial Average (DJIA). There are three circuit breaker thresholds—10%, 20%, and 30%—set by the markets at point levels that are calculated at the beginning of each quarter. The formulas for these thresholds are set forth in the New York Stock Exchange (NYSE) Rule 80B. For example, on April 1, 2007, the average value for the DJIA for the preceding month (March 2007) was used to calculate point levels (rounded to the nearest 50 points). This resulted in the Level One (10%) circuit breaker set at 1,250 points, Level Two (20%) circuit breaker set at 2,450 points, and the Level Three (30%) circuit breaker set at 3,700 points. In order to avoid such crashes in the future, several limits were implemented. They were required in order to calm the market down when it started to get on fire. Some of the restrictions include: 1. If before 2pm the Dow has decreased by 10%, the trading activity will be terminated for one hour. 2. If before 2pm the Dow has decreased by 20%, the trading activity will be terminated for two hours. 3. If the Dow has decreased by 30%, the trading activity will be terminated for the trading day. 4. If very significant events, such as terrorist attacks or natural disasters occur, the market will not be opened at all in order to avoid potential panic. The problem isn't losing 10% in one day. The problem is the stock market losing 5% every day. The way the economy is going, the greater problem is the economy gradually losing it's value not losing it all in one day. The "circuit breakers" could never come into effect and we could still go into a depression. Quote Link to comment Share on other sites More sharing options...
¯\_(ツ)_/¯ Posted September 30, 2008 Share Posted September 30, 2008 there are people who make livings forecasting the markets growth, trust me when I say that the market will never see multiple dates of 5 - 9% reduction. What happened today? +485.21 (+4.68%). Depressions are caused when the market takes a fast, drastic drop over a short span of time. 1987 happened in 2 days. The Great Depression happened in 3 days. What we witnessed yesterday, and what I am sure we will see again in the near future, are fast, small drops, in the 5 - 8% range that will follow by a day or two of 3 - 6% growth. Quote Link to comment Share on other sites More sharing options...
jaaake Posted September 30, 2008 Share Posted September 30, 2008 Wait so miketswidowspeak, are you saying good things are to come, or bad? Quote Link to comment Share on other sites More sharing options...
¯\_(ツ)_/¯ Posted September 30, 2008 Share Posted September 30, 2008 it all hinges on what happens in Washington. I'll explain more later. I need to go home. Quote Link to comment Share on other sites More sharing options...
andrew13 Posted October 1, 2008 Share Posted October 1, 2008 the market is ridiculous now. the volatility is unreal. however the spikes on commodities are bigger than the drops and the drops on the dow are greater than the gains. basically shit's getting more expensive (oil, gold, silver, copper, ect) while the economy goes down the shitter. if there is now bailout, i think we're fucked. i'm honestly scared for it. if the congress totally scraps it or delays it til after the election, we could see several more major banks fail and credit markets become even more stagnant. the bailout may cost a lot of money, but it's worth it to prevent a severe recession or depression. that'll cost us all a lot more money in the long run. Quote Link to comment Share on other sites More sharing options...
scottheisel Posted October 1, 2008 Share Posted October 1, 2008 Am I the only person who's not worried about any of this? I'm totally serious, too. I don't feel the slightest bit of panic over this whole thing. Quote Link to comment Share on other sites More sharing options...
kirbypuckett Posted October 1, 2008 Share Posted October 1, 2008 Am I the only person who's not worried about any of this? I'm totally serious, too. I don't feel the slightest bit of panic over this whole thing. Try working for a bank... Quote Link to comment Share on other sites More sharing options...
mcm1610 Posted October 1, 2008 Share Posted October 1, 2008 Am I the only person who's not worried about any of this? I'm totally serious, too. I don't feel the slightest bit of panic over this whole thing.I don't, because outside of ~$500 in credit card debt which I'll pay off in the next week or so, I have nothing to lose. It's a plus of being poor-ish. I just got all my student loans so I'm set for the year, and they can't jack the interest or anything on me. Quote Link to comment Share on other sites More sharing options...
¯\_(ツ)_/¯ Posted October 1, 2008 Share Posted October 1, 2008 this is exactly what needs to happen. I hope the Senate does NOT pass the bill tonight and that these people's plan gets looked at and implemented. http://www.cnn.com/video/#/video/bestoftv/2008/09/30/ldt.kaptur.defazio.intv.cnn Quote Link to comment Share on other sites More sharing options...
Guest baseball Posted October 1, 2008 Share Posted October 1, 2008 The stock market is going to be okay in time. The volatility was predictable. Of course the market tanked when the bill failed. Just look at what happened here. The president and many other politicians go on TV and lobby for a $700B blank check to bail out Wall Street. Constituents (rightly) flip their lids and convince their representatives that they will not vote for them if they pass this bill. Bill is rejected and Wall Street gets nothing. It makes complete sense the market would tank under those circumstances. That's like the equivalent of offering a little kid a big bowl of candy and saying "here, eat as much as you want!", followed immediately by taking the bowl of candy away and saying "nevermind, actually I need to think about that first." Wall street has a tantrum and stomps around because they can't have their candy with no questions asked. Market drops 777 points. This is an extremely complex issue. The REAL people are who need to be helped. Keep the REAL economy going. Straighten out the mortgages and keep people in their houses, let the people have access to the bankruptcy system all the huge corporations get access to, get Joe Sixpack on the right track. I can't believe people think bailing out Wall Street is just going to fix this. Priority number one is the PEOPLE, not the bankers. Wall Street can be restructured and re-regulated in time, why are we rushing this? What if this fails? No one knows for sure the bailout is going to do a damn thing, many economists are saying that. Spending $700B on this right now with all the other debt this country has is irresponsible, in my opinion. There's going to be a new administration in a few months which will likely be an improvement. Paulson will be gone. This is so obviously a last ditch effort. Do you really think these guys are worried about YOU, they are worried about themselves. Here's a fantastic segment with Robert Johnson, former chief economist of the Senate Banking Committee and Bruce Marks, founder of the Neighborhood Assistance Corporation of America, who also has testied on economic issues over the years. Read or listen to this if you want a take from people in the know. One is for a bailout, although not like the one proposed, and the other is against any bailout. http://www.democracynow.org/2008/9/30/bridge_loan_to_nowhere_house_rejects Quote Link to comment Share on other sites More sharing options...
mcm1610 Posted October 1, 2008 Share Posted October 1, 2008 That more or less sums up my thoughts on the issue right there. Quote Link to comment Share on other sites More sharing options...
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