The economy in the US

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Just to put things in perspective....

Monday the stock market lost 4.7% in a single day. People think that's catastrophic. But in 1987, the market lost 22.6% of its value in a single day. Does anyone remember that? We recovered quite nicely. In fact, although that 'crash' happened late in the year (late October), the market ended the year higher than it was in January 1987. Keep in mind also that the prime rate at that time was, I believe, around 22%, whereas it's something like 2% today.

Things are not as grim as they may seem. We've weathered much worse. Stay the course and have faith.
 
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Does anyone know what precipitated that plummet in 1987? Oh wait, I can look it up. I'm just wondering what the other factor statuses were. I know gas and all other "costs of doing business" couldn't have been what they are today, which is why I think it is especially painful right now.

But I know one thing, if you look at the number of producing companies who have shut down stateside and moved their operations overseas where labor is criminally cheap and materials are even cheaper, you will see where alot of the joblessness has stemmed. I am one of those statistics of global outsourcing to other countries.

The ironic thing during my transitional phase at Merrill was when we had to process employee visas to go over to India to train the people how to do our jobs. So many US companies were being outsourced that the visa offices were actually outsourcing the work to process our visas for outsourcing! I'm not lying.

Evan--- I, for one, don't know what to tell you. I know I can get a one-way train ticket from my hometown in the states to my mom's place down south for $37, and for an extra $10, I can bungee my bicycle on one of the train cars. I could not put gas in my car for that much money.
 
I was working a job at a casino, but I was laid-off. There was tons of job cutting going on. Plus we were merging with another casino where people got paid more for the same position. Also, I was low on the totem pole. So I got the can. Worked there 6 months. Haven't gotten a job that's paid close that in 6. I have been working unsteadily since then, and I have 0 money. Trying to cling to whats left.

I see these holidays being a problem for businesses, I don't think retail spending will be quite as high as it was the last couple of years. I just don't see us doing that good as a country until 2 or 3 years from now. Even then we will just be pulling ourselves back together.

eh...
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We have a 10 trillion dollar deficit. The feds are bailing out all these companies, and giving money for Ike. I don't want to mention what else we're spending money on, but I think everyone knows.

What will happen if the feds cut the 2% rate? How can they even cut that?
Is the goverment going to own all these companies and run them or what? what's going on?
 
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Evan S said:
I was working a job at a casino, but I was laid-off. There was tons of job cutting going on. Plus we were merging with another casino where people got paid more for the same position. Also, I was low on the totem pole. So I got the can. Worked there 6 months. Haven't gotten a job that's paid close that in 6. I have been working unsteadily since then, and I have 0 money. Trying to cling to whats left.

I see these holidays being a problem for businesses, I don't think retail spending will be quite as high as it was the last couple of years. I just don't see us doing that good as a country until 2 or 3 years from now. Even then we will just be pulling ourselves back together.

eh...
...

We have a 10 trillion dollar deficit. The feds are bailing out all these companies, and giving money for Ike. I don't want to mention what else we're spending money on, but I think everyone knows.

What will happen if the feds cut the 2% rate? How can they even cut that?
Is the goverment going to own all these companies and run them or what? what's going on?
Click to expand...

I'm no expert, so don't quote me -- but I think these bank bailouts are coming out of the FDIC, which is what it was intended for.

All I'm saying is I'm hanging tight. Keeping my money in American markets. Weathering the storm and looking long-range. I don't believe we're in nearly as bad shape as we have been in the past, with regards to the stock market itself.
 
With only 2% left to work with, the fact that the feds didn't cut rates today (or yesterday?) didn't really surprise me. And if the reason they would cut the rate is to increase credit spending...well hell. We consumers dont have what it takes. Wouldnt it just result in more unpaid credit lines? If the cut will help businesses seeking business loans, well, I don't know how much that is going to help either. The already 2% is crazy low and it isnt working.


Its my understanding that in these Federal bail outs, the govt would only own those companies if the company defaults on the bail out loan from the govt. Just like if you default on your car note to the bank, the bank owns your car and will send out the repo man. I imagine the bail out is not only enough to get them out of the hole, but also enough to recover in an operations sense. The whole AIG thing confuses me. Freddie and Fannie got bailed out because they were essentially govt sponsored ventures. AIG is strictly a private sector endeavor.

Its crazy.
 
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