The stock market is crashing!!

[BabaBooey]

Am I a chinese slave laborer yet?

Line is forming over there ----------->


This is not good.....bye bye 401k ....

 

[sao123]

more proof that trickle down economics dont work...

http://www.msnbc.msn.com/id/44000197/ns/business-stocks_and_economy/

"The (economic) numbers are not coming in favorably. They haven't been, and this is a reaction to all of that. We're in a major correction..." said Joseph Cangemi, managing director at BNY ConvergEx Group in New York.
Investors are now nervously focused on the crucial monthly jobs data to be released Friday by the Labor Department. Expectations are not high.
Story: Investors flee stocks for safer ground
Nonfarm payrolls likely increased 85,000 last month, according to a Reuters survey, after rising only 18,000 in June. The unemployment rate is expected to hold steady at
9.2 percent.
Earlier, the Labor Department reported that weekly initial jobless claims totaled 400,000, less than the 405,000 that was forecast. Investors were disappointed they didn't see more improvement in the labor market gauge.

So... the rich business owners and CEO's who are trading on the stock market, are dissappointed that there isnt better employment numbers... yet they are the same ones who refuse to hire anyone.

??Gee... im not going to hire anyone, but im reallyl dissapointed noone else is either.??

 

[Modelworks]

As long as we remain the people who buy cheap chinese crap, china will. always play second fiddle

So true. People please look at where stuff is made when you buy it and if you have a choice avoid the made in china stuff. It has gotten so bad that most apple juice in the USA is from china. Can you imagine living in Washington state and going to the store to find your apple juice is from china when their are orchards down the street ? You can tell the difference in China apple juice because it is bitter. Look on the bottles it tells you where it is from.

 

[sonambulo]

more proof that trickle down economics dont work...

Sure they do. The folks at the top piss all over everyone else whenever the hell they want to. We can't piss on them. See? Pee only goes from top to bottom.

 

[kyrax12]

So true. People please look at where stuff is made when you buy it and if you have a choice avoid the made in china stuff. It has gotten so bad that most apple juice in the USA is from china. Can you imagine living in Washington state and going to the store to find your apple juice is from china when their are orchards down the street ? You can tell the difference in China apple juice because it is bitter. Look on the bottles it tells you where it is from.

I wonder if it is safe to buy food products from China.

 

[spidey07]

http://money.cnn.com/2011/08/04/markets/markets_newyork/index.htm?iid=A_MKT_News


More or less 3% for the Dow, S&P, and NASDAQ. That's a lot for one day.

On top of the slide last week, it's a lot in a short time.

Getting ready to make another order for silver.

 

[LegendKiller]

I am buying as much canned goods, ammo and fishing supplies as I can afford.

If all else fails, I will go down to the local river and catch something to eat. And my hunting lease is paid up for the next year.



http://www.foxnews.com/politics/2011/08/04/us-debt-reaches-100-percent-countrys-gdp/

The US now owes as much as we are worth.

GDP is not a measure of how much we are "worth" but a measure of how much we produce. The US is worth far more than $14TR.

 

[theeedude]

This is going to keep happening until the Fed devalues the currency with QE3. After the debt ceiling deal, Obama is out of fiscal options.

 

[Modelworks]

I wonder if it is safe to buy food products from China.

http://www.foodsafetynews.com/2010/03/study-finds-concerning-levels-of-arsenic-in-apple-juice/

A study released yesterday found over 25 percent of apple juice boxes tested contained concerning levels of arsenic, a heavy metal known to cause various types of cancer.

The Environmental Protection Agency (EPA) has an established limit for arsenic in drinking water: 10 parts per billion (ppb), the same standard set by the World Health Organization. The FDA does not have a similar limit for fruit juice, but, according to the Times, the agency told fruit juice companies that arsenic levels over 23 parts per billion (ppb) would be at a "level of concern."

Motts, Apple & Eve Organics, and Walmart's juice were found to contain between 25 and 35 ppb of arsenic. Juicy Juice, Minute Maid, Tree Top, and Target's Market Pantry did not surpass the FDA's so-called "level of concern" for juice, but each surpassed the EPA's allowable limit for arsenic in drinking water, with 12 to 24 ppb.

We banned those arsenic based chemicals in the USA, but not China.

 

[JJ650]

It is pretty bad. I have kept faith in caterpillar for a long time and they didn't do too good this quarter, not bad but not good. I will not sell it, the company has been too good for me, but when they have trouble it usually is not a good sign.

CAT is easily our largest customer (as well as our most tempermental) but they have been VERY active this past year. They are pushing us to increase our production numbers and having us quote new parts a lot this year.
We have yet to see a drop off in the past 3 months in production for them. If anything, it's increasing. They're doing ok aside from the stock.

 

[EagleKeeper]

more proof that trickle down economics dont work...

http://www.msnbc.msn.com/id/44000197/ns/business-stocks_and_economy/



So... the rich business owners and CEO's who are trading on the stock market, are dissappointed that there isnt better employment numbers... yet they are the same ones who refuse to hire anyone.

??Gee... im not going to hire anyone, but im reallyl dissapointed noone else is either.??

Why hire if no one wants to purchase. You build up inventory; All expense and no income.
Do you work for free?

And if the government is going to screw around with what we can/can not manufacture; the safe thing is to stand on the side of the road for now.

 

[mizzou]

Im waiting for goldman sachs to file another reactive statement to recent events about their once again horribly incorrect financial outlook

 

[Whoozyerdaddy]

http://www.youtube.com/watch?v=_gekaEzqj5g&feature=player_detailpage#t=132s

 

[Texashiker]

GDP is not a measure of how much we are "worth" but a measure of how much we produce. The US is worth far more than $14TR.

Since we do not use the gold standard, or anything else solid to backup the value of our currency,

what we produce = what we are worth

As we continue to shop jobs to china, the value of the US dollar gets weaker and weaker.

 

[*kjm]

It is pretty bad. I have kept faith in caterpillar for a long time and they didn't do too good this quarter, not bad but not good. I will not sell it, the company has been too good for me, but when they have trouble it usually is not a good sign.

Give them a break.... they did buy Bucyrus International this year
They will be making mining equipment for China to dig all the coal they want real quick.... that stock will make you big money down the road.

 

[Spikesoldier]

Since we do not use the gold standard, or anything else solid to backup the value of our currency,

what we produce = what we are worth

As we continue to shop jobs to china, the value of the US dollar gets weaker and weaker.

but a weak dollar is going to ruin the peg the yuan has on it and force it to trade at its real value. then china will be HURTING.

 

[LegendKiller]

Since we do not use the gold standard to backup the value of our currency,

what we produce = what we are worth.

One has nothing to do with the other and you are confusing production vs liabilities and being gold backed has nothing to do with anything at all. If anything, the fact we aren't gold backed makes the comparison even more silly since our GDP could be inflated 2x by printing and our debt would only increase by double the current deficit, or ~3TR, if that since more revenue would come in from far higher tax receipts. Your logic fails.

The $14TR in debt wasn't accumulated to fund the $14TR in GDP. You are mixing up balance sheet vs income statement.

Put yourself into an apples to apples comparison. Let's say the US economy and all of its assets are worth $200TR against $14TR in debt. That would be a PV of the $14TR in GDP plus all of the current stuff produced from prior GDPs.

 

[spidey07]

Yep, the DOW has given up every penny of gains for this year.

 

[Texashiker]

but a weak dollar is going to ruin the peg the yuan has on it and force it to trade at its real value. then china will be HURTING.

China will not be forced to do anything.

Put yourself into an apples to apples comparison. Let's say the US economy and all of its assets are worth $200TR against $14TR in debt. That would be a PV of the $14TR in GDP plus all of the current stuff produced from prior GDPs.

Assets should not be counted, the only thing that should be considered is income ability. The government does not own anything, the people own it. And as such, the government can not consider the property of the people as assets. We can not sell off Texas, the grand canyon or New York and count them as "assets". We are not going to sell off a chemical plant and call it an asset.

Is the government going to seize a chemical plant from DuPont, call it an asset and give it to the chinese as payment on the debt? It does not work that way. The so called "assets" your referring to are the property of the people.

Our rate of production has been going downhill for the past 20+ years. With the passage of NAFTA and GATT, we lose value with every passing day.

The value of the US dollar has to be backed up by "something", and with your example, the US dollar is worthless because it has no backing.



Our current state of production and income ability is equal to what we owe - and that is very bad.

 

[edro]

Crap. I was going to retire this year too...

 

[Imp]

I've got more than half my savings in stocks. More annoyed than worried right now. If I sell right now, I can make it all back with one good rally... Going to think about it. Or I could sell and wait for the CAN$ to tank and just use the exchange rate for US$ to get me back to par.

Just remember. These pussies on the market did the EXACT same thing for 3 or 4 months early in the year. OMFG, Libya, Saudi Arabia going to revolute! Buy oil!!! OMFG, Japan earthquake, sell, sell, sell!!! The stock market: king of overreaction.

 

[spidey07]

Crap. I was going to retire this year too...

If you were close to retirement not much of your money should have been in stocks anyway. FAIL.

 

[spacejamz]

yeah they would make more money if people were building stuff but seems like everyones broke

Alot of companies are not broke...They actually have cash, but since they do not know what Obama annd company will do regarding taxes and regulations, they are waiting on the sidelines and keeping their wallets in the their pockets...

 

[LegendKiller]

China will not be forced to do anything.

China will absolutely be forced to do something. They cannot keep accumulating USD assets to fuel their trade deficit, which fuels their economy and bootstraps it to the 21st century. Doing so will only cause further imbalances from both FDI and foreign reserves to explode inflation. Keep in mind, that for every USD printed, China has to print ~5 Yuan to keep the currency peg in place. This, when combined with FDI, creates a huge amount of inflation in there market, far more than they are letting on through "official" figures.

As with every other country with a USD peg, they are trying to piggyback on the USD's strength to fuel their manufacturing economies and it is finally blowing up on them.

Assets should not be counted, the only thing that should be considered is income ability. The government does not own anything, the people own it. And as such, the government can not consider the property of the people as assets.

Our rate of production has been going downhill for the past 20+ years. With the passage of NAFTA and GATT, we lose value with every passing day.

The value of the US dollar has to be backed up by "something", and with your example, the US dollar is worthless because it has no backing.

We can not sell off Texas, the grand canyon or New York and count them as "assets". We are not going to sell off a chemical plant and call it an asset.

Our current state of production and income ability is equal to what we owe - and that is very bad.

The debt is backed by the US economy and government, not just by the government. It's ability to be repaid is the ability for Americans to repay it, whether that's through increased taxes or decreased spending. Regardless, it's an American liability. You cannot just separate the US Government from the people. Further, comparing the two is exactly what you are doing, you are comparing what the US *PEOPLE* generate for production to what the *GOVERNMENT* owes. I am merely putting that on equal footing. Further, you cannot compare INCOME to LIABILITY unless you have a more reasonable measure for comparison, DTI for example, even then, DTI can be much more than 1x for a healthy person or company.

The value of the USD is based upon the value of anything else in this world that has little/no intrinsic value, what somebody else will pay for it or accept it as a medium for exchange. Gold has almost no intrinsic value, yet you wanted to back the USD.

 

[overst33r]

too soon/late to switch portfolio to bonds?