Will the Dow drop below 10,578.24 before Bush's term ends?

[Person Man]

It could, but it will probably balence out around 11,400ish.  That's like 1.5% growth in 8 years. That's what I call conservative!

[Person Man]

Why will it be so black? New economic data? Oh I see now.

[Person Man]

Some folks say were headed to a financial "perfect storm". I would say its the result of the following:

-Systematic destruction of US manufacturing resulting from free trade deals signed by Bill Clinton and endorsed by Al Gore.

-Collapsing US dollar which was caused by continuous government deficit spending and government creating money out of nothing.

-Burst of the stock bubble in 2000, followed by burst of the housing bubble and now the mortgage bubble. Now there are no more bubbles... just broken bubbles to be cleaned up.

Ummm... I thought you were in favor of fair trade and now you are bashing Clinton for being too conservative?

...and there are still bubbles. We still have the trade deficit and the feds still owe a quarter of the entire earth GDP in year to foreign banks.

[Person Man]

I doubt that. The dow could gain if the investment bankers spun it in a positive way. I am guessing the Dow will go below 12000 tomorow.

[Person Man]

I really would not be too surprised if it went below that by the close of business tomorrow.

That's a scary thought... although its certainly possible.

and if it does, we WILL be heading for a reccesion. No questions asked.

[Person Man]

The markets are hovering below 12000....just as I expected.

[Person Man]

The markets are hovering below 12000....just as I expected.

Did you expect the rate cut? Had that not happened, the market would be down 500 points today, at least. (Although I think that would have been a better thing for the economy; Bernanke's panic button is getting old.)

It seems like a coke moment, doesn't it?

[Person Man]

The markets are hovering below 12000....just as I expected.

Did you expect the rate cut? Had that not happened, the market would be down 500 points today, at least. (Although I think that would have been a better thing for the economy; Bernanke's panic button is getting old.)

So it is like coke.
It seems like a coke moment, doesn't it?

The worst part is that, the next time the market panics, they'll expect another rate cut. And that time it will have to be at least 75 basis points or else they'll panic anyway that "the Fed isn't doing enough".