Dow Drops 504, NOW Let’s Pick a President!

Finally! A news event that renders moose stew and hockey moms and honorable POW status pretty much irrelevant.

Like John McCain, I’m no expert on economics. There was a time that I was in the market, a (very) amateur trader (or home-gamer as Jim Cramer likes to say). I got out for reasons other than the current melt down. My experience as a stock owner at least taught me that failures like the one at Lehman aren’t just limited to Lehman or bank stocks. There is a ripple effect. Lots of folks lost money today and it is only one signal of an economy in desperate straights. McCain’s answer is that the fundamentals of the economy are strong. The only justification for this kind of response is to keep folks from jumping out of windows a la 1929. Let’s hope that was his only motive in making a statement that flies in the face of reality.

Bottom line, the economy has been simmering under the surface as THE campaign issue for 2008 and today I think it finally broke open. Try as he might, McCain can no longer use superficial distractions in place of concrete policies. He must now address how the Republicans have gotten us to where we are. Today on MSNBC’s “Hardball”, Chris Matthews presented some staggering statistics:

Economic Indicators Presented on "Hardball"

Economic Indicators From "Hardball"

If the United States were a corporation, any management team with this track record would be tossed out on its ass faster than you can say “thanks but no thanks”. It’s time to give a new management team a try.

Respectfully,
Rutherford

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4 thoughts on “Dow Drops 504, NOW Let’s Pick a President!

  1. Lots of people lost money, but only those who invested in Lehman and Merril.

    Both are actually investment holding companies. They take money from people and invest it in all kinds of stuff. Those investments are still completely good, and are not effected by any of this.

    The people who didn’t invest in all kinds of stuff, but in the holding companies themselves, are the people who are crying tonight. And granted, there are plenty of them. But it’s not as bad as one might think.

    Also, it’s important to see this in a relative manner. Today’s 500 point drop is about 4% of the market. The 1987 drop of 500 points was around 22% of the market. So a lot of this talk about comparing today to the Great Depression (Not saying it has been done here) is a bit exaggerated, in my opinion.

    And I’m not saying all of that to try and say things like today are no big deal. They certainly are. But I’ve seen and heard a lot of panic-mode talk today, that I feel is premature at this point.

  2. After reviewing my comment, I need to qualify it a bit more.

    That initial statement was only talking about those companies that folded. Obviously people lost money from a 500 point drop.

    I hate not having an edit button everywhere I go.

  3. Red Pill, you’re absolutely right that this particular stock situation has to be viewed in relative terms so as not to exaggerate the level of crisis. It’s not The Great Depression by any stretch.

    Still, the Republican administration has run the country into a ditch economically. Real change is needed.

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