today was a sign that a New Great Depression is upon us.

We aren't in a recession. The last two quarters we've had positive GDP growth of .9% and about 3.3%. Recession is at least two consecutive quarters of negative GDP growth. None of the other economic indicators point to a recession either...

If we were in an actual recession, you would know it. Everyone here would know it.

I'm ready for soup and bread lines anyway.Pittfan666

Darn Straight lol.

Today the Dow dropped 800 points...the largest drop in history. Yeah, we're all fine, nothing's wrong....

A depression is feasable. Since there will be no law making until at least Thursday, the market could drop even more. People aren't taking this seriously. This is BIG. I can't believe people are still in their wacky dream worlds and think we aren't in a recession. Maybe only people that know about the stock market can understand this stuff, though....

Panic will only make things worse.

Today the Dow dropped 800 points...the largest drop in history. Yeah, we're all fine, nothing's wrong....

A depression is feasable. Since there will be no law making until at least Thursday, the market could drop even more. People aren't taking this seriously. This is BIG. I can't believe people are still in their wacky dream worlds and think we aren't in a recession. Maybe only people that know about the stock market can understand this stuff, though....

WINDWAKER1

We aren't in a recession. We've had positive GDP growth the last two quarters.

[QUOTE="ronniepage588"]

but this is all comes down to one thing, the government continually makes these problems, they only get worse, and then people expect the government to come up with a solution to fix this problem. its a vicious circle.

this government is WAY too big right now and has WAY too much power.

pianist

The government didn't make this problem. Big corporations made this problem, and now they need the tax payers to foot the bill for their irresponsible business practices. The problem here is the tax payers will be in even worse shape if they don't bail out the rich folks here, because they won't have jobs. This country is totally dependent on the ability to borrow money. Take that away, and you cripple the economy. Crippled economy = no work for lots of people, no matter how qualified they may be.

So the government stepping in and bailing out corporations for taking risks isn't a problem? Maybe if they knew they wouldn't be bailed out they wouldn't take so many risks. No company or institution should ever be too big to fail. If that means temporary lost jobs, so be it.

It will not be a Depression, things may be bad. but it wouldn't be that bad.

[QUOTE="sSubZerOo"][QUOTE="maheo30"]

It will get worse when O'Drama gets in there and starts raising taxes.

ronniepage588

Obama is lowering taxes for 95% of the nation, and for people that recieve 250k or more a year they get a slight tax increase.. A increase that still won't make taxes what it was in the 90s :|

then how does he plan on paying the absurd amount of things he keeps promising everyone?!

Magic. Once in office Obama will pass a bill giving the president magical powers and that would slove everything.

[QUOTE="pianist"]

[QUOTE="LJS9502_basic"]I don't see that happening....ronniepage588

Nor do I. Times have changed. The world is a very different place from what it was in the 30s. For one thing, the whole world is no longer dependent on the US economy, because China and India have become much more prominent. So the old adage that "when the US economy sneezes the world catches a cold" may no longer be true. And for another thing, measures were implemented after the stock market crash in the 30s to prevent it from happening ever again. So you can't have everybody instantaneously panic selling everything and thus paralyzing the entire economy.

This isn't a good situation... but people need to stop being so melodramatic about it. This doomsday nonsense is nauseating.

o really? do you know what happened today? the selling was so intense today that just 162 stocks rose on the NYSE -- and 3,073 dropped! It takes an incredible amount of fear to ignite that kind of reaction on Wall Street.

So what. None of the stocks dropped nearly as far as they did on real crisis days like Black Monday. This drop was significant, but in no way does it reflect the magnitude of what has happened in the past. And the markets now have automated stop losses placed on them that prevent trading in the event of a truly catastrophic crash... so again, investors no longer have the ability to cripple the economy with their irrational fear.

big corperations made this problem. but why? it all leads back to the government.

i'm sure the value of the dollar had nothing to with any of this! pfff

ronniepage588

It leads back to corporations providing loans irresponsibly. :| It never ceases to amaze me the lengths some people will go to scapegoat and refuse to accept that maybe, just maybe, capitalism is not a perfect system, and corporations CAN screw up, dragging the economy down with them.

Today the Dow dropped 800 points...the largest drop in history. Yeah, we're all fine, nothing's wrong....

WINDWAKER1

Not percentage-wise. Not even close.

The dollar will become so bad that we'll start using pudding to buy things.

"Hey, excuse me, do you have change for a vanilla?"

"You want chocolate or butterscotch?"

"Butterscotch will be fine, thank you."

You guys are seeing this all wrong....This is an oppurtunity for us rich folks to get even richer:D With all the poor people losing their houses and banks desperatley selling them at low pirces. Now we can buy 2 or 3 for the price of one. Yea the stocks are doing horrible but this just means I can buy tons of it. So basically if you have it...Spend it! not on useless things like videogames/cars/food but on Property and stock. You will thank me a cople years from now. cheetfreak

Indeed. Problem is most people don't have money to spend, or don't really know how to spend it. Now really isn't the time to be gambling if you don't have much room for error. Better to be safe and wait till there are signs of a real recovery in progress, then jump in on the deals. You won't catch the bottom... but nor will you be stuck if what you thought was the bottom is in fact not even close to the bottom.

[QUOTE="WINDWAKER1"]

Today the Dow dropped 800 points...the largest drop in history. Yeah, we're all fine, nothing's wrong....

A depression is feasable. Since there will be no law making until at least Thursday, the market could drop even more. People aren't taking this seriously. This is BIG. I can't believe people are still in their wacky dream worlds and think we aren't in a recession. Maybe only people that know about the stock market can understand this stuff, though....

Manly-manly-man

We aren't in a recession. We've had positive GDP growth the last two quarters.

so will it take two quarters of serious losses in the stock market (800 points today, biggest loss in history) and major corporations failing to make you believe we are in a recession?

[QUOTE="cheetfreak"]You guys are seeing this all wrong....This is an oppurtunity for us rich folks to get even richer:D With all the poor people losing their houses and banks desperatley selling them at low pirces. Now we can buy 2 or 3 for the price of one. Yea the stocks are doing horrible but this just means I can buy tons of it. So basically if you have it...Spend it! not on useless things like videogames/cars/food but on Property and stock. You will thank me a cople years from now. pianist

Indeed. Problem is most people don't have money to spend, or don't really know how to spend it. Now really isn't the time to be gambling if you don't have much room for error. Better to be safe and wait till there are signs of a real recovery in progress, then jump in on the deals. You won't catch the bottom... but nor will you be stuck if what you thought was the bottom is in fact not even close to the bottom.

True. In my economics class we learned that most families in the US are 2 or 3 checks away from bankrupcy

[QUOTE="pianist"]

[QUOTE="cheetfreak"]You guys are seeing this all wrong....This is an oppurtunity for us rich folks to get even richer:D With all the poor people losing their houses and banks desperatley selling them at low pirces. Now we can buy 2 or 3 for the price of one. Yea the stocks are doing horrible but this just means I can buy tons of it. So basically if you have it...Spend it! not on useless things like videogames/cars/food but on Property and stock. You will thank me a cople years from now. NYiVtec

Indeed. Problem is most people don't have money to spend, or don't really know how to spend it. Now really isn't the time to be gambling if you don't have much room for error. Better to be safe and wait till there are signs of a real recovery in progress, then jump in on the deals. You won't catch the bottom... but nor will you be stuck if what you thought was the bottom is in fact not even close to the bottom.

True. In my economics class we learned that most families in the US are 2 or 3 checks away from bankrupcy

And how did your economics teacher obtain this information. What level of school are you at just out of curiosity.

[QUOTE="NYiVtec"][QUOTE="pianist"]

[QUOTE="cheetfreak"]You guys are seeing this all wrong....This is an oppurtunity for us rich folks to get even richer:D With all the poor people losing their houses and banks desperatley selling them at low pirces. Now we can buy 2 or 3 for the price of one. Yea the stocks are doing horrible but this just means I can buy tons of it. So basically if you have it...Spend it! not on useless things like videogames/cars/food but on Property and stock. You will thank me a cople years from now. Correyov31

Indeed. Problem is most people don't have money to spend, or don't really know how to spend it. Now really isn't the time to be gambling if you don't have much room for error. Better to be safe and wait till there are signs of a real recovery in progress, then jump in on the deals. You won't catch the bottom... but nor will you be stuck if what you thought was the bottom is in fact not even close to the bottom.

True. In my economics class we learned that most families in the US are 2 or 3 checks away from bankrupcy

And how did your economics teacher obtain this information. What level of school are you at just out of curiosity.

the teacher is an idiot but it was in a movie about credit issued by NYS. im a high school senoir.

This is how we got into this mess vote them out

http://www.youtube.com/watch?v=_MGT_cSi7Rs

[QUOTE="Manly-manly-man"][QUOTE="WINDWAKER1"]

Today the Dow dropped 800 points...the largest drop in history. Yeah, we're all fine, nothing's wrong....

A depression is feasable. Since there will be no law making until at least Thursday, the market could drop even more. People aren't taking this seriously. This is BIG. I can't believe people are still in their wacky dream worlds and think we aren't in a recession. Maybe only people that know about the stock market can understand this stuff, though....

NYiVtec

We aren't in a recession. We've had positive GDP growth the last two quarters.

so will it take two quarters of serious losses in the stock market (800 points today, biggest loss in history) and major corporations failing to make you believe we are in a recession?

First off, as stated, 800 points is not the largest loss percentage wise, and it's not even close. And do you realize that for me to believe we are in a recession...it would have to be a recession. That means negative growth. We have still had positive GDP growth. Therefore no, it's not a recession, no matter how badly you want it to be.

yeah we are going through a recession

[QUOTE="Manly-manly-man"][QUOTE="WINDWAKER1"]

Today the Dow dropped 800 points...the largest drop in history. Yeah, we're all fine, nothing's wrong....

A depression is feasable. Since there will be no law making until at least Thursday, the market could drop even more. People aren't taking this seriously. This is BIG. I can't believe people are still in their wacky dream worlds and think we aren't in a recession. Maybe only people that know about the stock market can understand this stuff, though....

NYiVtec

We aren't in a recession. We've had positive GDP growth the last two quarters.

so will it take two quarters of serious losses in the stock market (800 points today, biggest loss in history) and major corporations failing to make you believe we are in a recession?

Can you stop acting like you know whats going on just because you're in a high school econ class? We're not in a ******* recession.

yeah we are going through a recession

freshgman

not yet

[QUOTE="NYiVtec"][QUOTE="Manly-manly-man"][QUOTE="WINDWAKER1"]

Today the Dow dropped 800 points...the largest drop in history. Yeah, we're all fine, nothing's wrong....

A depression is feasable. Since there will be no law making until at least Thursday, the market could drop even more. People aren't taking this seriously. This is BIG. I can't believe people are still in their wacky dream worlds and think we aren't in a recession. Maybe only people that know about the stock market can understand this stuff, though....

Manly-manly-man

We aren't in a recession. We've had positive GDP growth the last two quarters.

so will it take two quarters of serious losses in the stock market (800 points today, biggest loss in history) and major corporations failing to make you believe we are in a recession?

First off, as stated, 800 points is not the largest loss percentage wise, and it's not even close. And do you realize that for me to believe we are in a recession...it would have to be a recession. That means negative growth. We have still had positive GDP growth. Therefore no, it's not a recession, no matter how badly you want it to be.

Correct 800 points is not the largest percentage loss, but it is the highest point loss. technical deffinitions aside, our economy is going downhill and if we dont do something about it, it will continue in that direction. idw a recession, i just believe were in one

[QUOTE="NYiVtec"][QUOTE="Manly-manly-man"][QUOTE="WINDWAKER1"]

Today the Dow dropped 800 points...the largest drop in history. Yeah, we're all fine, nothing's wrong....

A depression is feasable. Since there will be no law making until at least Thursday, the market could drop even more. People aren't taking this seriously. This is BIG. I can't believe people are still in their wacky dream worlds and think we aren't in a recession. Maybe only people that know about the stock market can understand this stuff, though....

Cloud_Insurance

We aren't in a recession. We've had positive GDP growth the last two quarters.

so will it take two quarters of serious losses in the stock market (800 points today, biggest loss in history) and major corporations failing to make you believe we are in a recession?

Can you stop acting like you know whats going on just because you're in a high school econ class? We're not in a ******* recession.

i never said i knew what i was talking about cuz i was in an econ class, im just saying what i know. just because we havent been lossing massive amounts of money for 2 quarters doesnt mean we arent *****ed. if you want to wait that long to do something about it your stupid imo. it doesnt take a college degree to realize something is wrong

Even if nothing is done about it the economy will end up recovering. The point is to get it to recover more quickly.Correyov31

if you think its gonna end thats the best way to look at it. if you think itll keep going down than you should try to stop it.

[QUOTE="Correyov31"]Even if nothing is done about it the economy will end up recovering. The point is to get it to recover more quickly.NYiVtec

if you think its gonna end thats the best way to look at it. if you think itll keep going down than you should try to stop it.

Laise Faire... It will eventually fix itself but we shouldn't wait that long. We need to create more jobs as quickly as possible. Economic stimulus and bailouts are not the way imo. They will put more strain on the American citizens at some point.

The Great Depression occured because of incredible stupidity on so many levels. Thats not going to happen here.

[QUOTE="psn_Jaimzl"]i agree there is going to be another depression but it will be world wide this time because of the global marketSajo7

The last one was more or less world wide.

I rely on you for linkification!!!

i never said i knew what i was talking about cuz i was in an econ class, im just saying what i know. just because we havent been lossing massive amounts of money for 2 quarters doesnt mean we arent *****ed. if you want to wait that long to do something about it your stupid imo. it doesnt take a college degree to realize something is wrong

NYiVtec

please do some research into what a recession is before determining that we are in one.

The Great Depression occured because of incredible stupidity on so many levels. Thats not going to happen here.

[QUOTE="psn_Jaimzl"]i agree there is going to be another depression but it will be world wide this time because of the global marketSajo7

The last one was more or less world wide.

bring it ON!, republicans brought it on themselves.Xxgood-timesXx

The technical definition of a recession is two consecutive quarters of decreasing GDP, which the U.S. has not yet reached. However, much debate has surfaced since the beginning of the S&P 500's roughly 20% YTD decline as to whether or not that definition is really an accurate method of determining whether or not a nation is actually in a recession. I, for one, believe that the U.S is already in a recession (you can believe what you want, I won't argue this).

As for the stock market, indeed today was a brutal day, with the DJIA down 778 points. Again, I said this yesterday, if anyone has money exposed to the market's volatility in an IRA, 401K, or any other type of investment account, you really need to rethink your positions and asset allocation. Now is the time to do it. It may be too late by the time you get around to it. Now is the time to decrease market exposure and increase assets in fixed income areas. Or, I would recommend that if you have only long positions in growth stocks that you hedge your positions by shorting the S&P 500 (long SDS or short SPY) or by taking short positions in financial ETFs. I would buy SKF, or short UYG or XLF. Unfortunately we cannot short individual financial stocks (ETF shorts are still allowed though), as such an act is temporarily banned until Oct 2, and the ban will almost surely be extended considering the market's condition in its current state. However, put options are still allowed and can be an amazingly effective as method of decreasing risk in a portfolio. Obviously I'm still bearish on financials on a short term basis. Also, if you want to further decrease risk, you could take long positions in value plays such as Apple, Gamestop, and Activision Blizzard while hedging the positions, which are currently trading at 52-week lows (AAPL and GME are, ATVI is not). Do not buy any long position in equities right now without hedging. You're almost guaranteed to get burned given the current market's state and incredible volatility.

Normally I wouldn't recommend buying stocks at 52 week lows; however, such a method right now in quality growth stocks such as Apple and Gamestop, companies that experience seasonal rises during the holidays, can be effective when combined with a hedging strategy. The condition of the U.S. financial system will determine the direction of Wall Street day in and day out. If the financial system somehow miraculously recovers or is up on good news, value stocks that have been beaten up lately such as Apple will rise quickly.

One of my goals in life is to get people to look at their retirement plan more than just once a quarter. You really need to know what's going on so you can reach retirement safely.

Don't expect a depression anytime soon. Though this 'recession' most of us are in, will probably get worse. Inflation will probably get worse as well. One major, major factor people forget is that America didn't have, back in the 30s, was a central bank. Worst comes worst, like most others are starting to say, what will happen is banks will make sure mortgages are difficult to get. Banks like washington mutual would give a mortgage to almost anybody. Then you have more little known banks like City national that you have to almost have a perfect credit score to mortgage anything.

We could live without mortgages. Save up for land, and buy it out. Not get money lent to you, and you pay it back to the bank. The baby boomers sure had and HAVE it made.

Now if this mortgage crisis CONTINUES to get out of control, then a great depression is more likely. What'll really factor into it, is what the next president does. Mccain so far sounds like he wants to end spending entirely, and that'll really create a ruckus. Cancelling basically healthcare entirely? All that man ever said in his debate that he stressed, was things for veterns. Obama sounds like he wants spending to be more moderate. Though, taxes will raise during these times though with his idea. Tell me this though. Even with the high taxes of the 90s, was this country in good shape then? AMEN IT WAS! Jobs paid well, and basically any willing person could work.

Time to read your Bibles.Zephgaldarien

got that right

Time to read your Bibles.Zephgaldarien

+1

Even if nothing is done about it the economy will end up recovering. The point is to get it to recover more quickly.Correyov31

there is no way to speed up a recovery. any attempt by a central authority to "speed it up" will inevitably result in the exact opposite. the market must be left alone so that the equilibrium of supply and demand is left wherever the consumers want it to be.

[QUOTE="Correyov31"]Even if nothing is done about it the economy will end up recovering. The point is to get it to recover more quickly.lilburtonboy748

there is no way to speed up a recovery. any attempt by a central authority to "speed it up" will inevitably result in the exact opposite. the market must be left alone so that the equilibrium of supply and demand is left wherever the consumers want it to be.

Indeed. Seriously, nothing the government can do will provide a "quick fix" to the current dilemma. When the government bailed out Fannie Mae, Freddie Mac, and AIG, the markets rallied big only to plummet back shortly after. When the markets are up big on government action or rumors, it may provide a great shorting opportunity for traders. If another bailout plan is somehow implemented and approved, no doubt the markets will rally and likely reach a state of short term stability, but it will eventually fail. Nothing the government can do will fix this economic crisis, so it's only reasonable for the rallies to fall back to their previous levels.

bring it ON!, republicans brought it on themselves.Xxgood-timesXx

democrats have controlled congress for almost a year now. im not pointing blame i dont know whose fault it is if anybodys. but dont start pointing fingers right when something bad happens and immediately blaming the other party. stuff this big is usually a little bit of both parties.

[QUOTE="NYiVtec"]

[QUOTE="Correyov31"]Even if nothing is done about it the economy will end up recovering. The point is to get it to recover more quickly.Correyov31

if you think its gonna end thats the best way to look at it. if you think itll keep going down than you should try to stop it.

Laise Faire... It will eventually fix itself but we shouldn't wait that long. We need to create more jobs as quickly as possible. Economic stimulus and bailouts are not the way imo. They will put more strain on the American citizens at some point.

your right on economic stimulus, i dont think that helped a whole lot. and maybe the bailout they were gonna do was a bit much. but you cant create jobs if businesses are doing bad and going under. sometimes it takes a little push to get them back on their feet. you also have to remember that during the depression it took alot of government help to individuals and businesses. people dont realize that there were a good bit of programs helping businesses get off there feet or back up and running as well. i dont this is gonna turn into depression but its most definitely pretty bad