The stealth bear market - Top Stocks Blog - MSN Money
 
Search Top Stocks:

The stealth bear market

Posted Jun 30 2008, 03:28 PM by Minyanville
Rating:
Filed under: , ,

This barrage of economic non sequiturs has left us immune to any real measure of financial disaster beyond the amount of cash and coin in our pockets. We no longer even notice this process. We accept it and move on. That's one reason financial disasters seem to skate along public consciousness generating only a vague sense of dumbfounded awareness; it's a stealth bear market.

The New York Times tried to spell it out over the weekend - "Battered by Oil, Dow Touches Bear Territory" - but who can be bothered to pay attention to such things when there's wine to be drunk and bill collectors at the door? What does it mean?

What we know is that through Friday the Dow Jones Industrial Average was down 20% from the October peak. But, really, it's worse than that. The average stock in the Dow is off nearly 30%,  and some, like American International Group and Citigroup, are down more than 50%. Few on Main Street have noticed this, or even care anymore, mostly because they're busy pawning jewelery to buy gas and groceries.

Meanwhile, the economic data continues. It's relentless...

Top Stocks blogging partner Todd Harrison is founder & CEO of Minyanville.com. This post was written by Minyanville Executive Editor Kevin Depew. Excerpted from Five Things You Need to Know. Click here for the other four things.

Comments

 

What is wrong with people?  Too many think that just because they want things to get better that they are going to do so.  As Earl Pitts says, "Wake up America!"

Face the facts:  The slumping economy has not come even close to bottoming out.  The next wave of "unforeseeable" disaster will come when thousands and thousands of auto assembliers and parts suppliers lose their jobs because people stop buying new cars....in addition to trucks.

Then, their houses get foreclosed on and their maxed out credit cards become anchors around their necks.  More trouble for the financial sector.

Then, they no longer have any buying power for basic food and services, and the food and clothing sectors go into the tubes.

It just keeps spiraling.

When does it end?  It ends when we stop sending money, goods and services to every country around the world.  It ends when the financial health of America comes first in the eyes of politicians.  It ends when we adopt a policy of less importing and exporting and more in-country manufacturing and consumption.

That is how it ends.

Before we get too angry with "Big Oil" or those "darned speculators" we can thank Big Uncle Sam for at least a portion of the price at the gas pump. Politicians were so focused on saving the financials they pressured the FED to cut interest rates, which devalued the Dollar which has helped to spike oil prices and your cost at the pump. So thanks to some of the greedy few and a bunch of folks who had no byusiness buying a houes ALL uo us are paying for the subprime mess one tank at a time. Oh yeah, Congress changed the rules for home mortgage lending to allow for more homeownership starting the subprime debacle in the first place. Some people don't deserve to own a home.  

It seems to me that there are very few people under 35 that can remember the boom and bust cycles we went through in the 50's, 60's and 70's. Just as pour parents didn't take about the Great Depression, we have sheltered our you people from the trauma of layoffs and falling back on our savings to save the house and continue to put food on the table.

We seem to come a long way in recent years that we believe it makes no sense to save because nothing financially bad is going to happen to us and we can do better leveraging our money in a house, that we can ill afford, than get 4.5% on a CD.

Being of the MAD Magazine Generation, "What me worry?". Unfortunately it is too late to even consider the financial train wreck we are in. So what is left to do but walk away from it all, raid our 401Ks or hope our parents don't waste all their money on elder care and medical bills.

Todd Harrison, sorry to say is a pathetic moron.  No one but such a person would seek to publish the story above.  Listen to this: people are pawning their jewelry according to him and not thinking about wall street.  My take is the people pawning jewelry would be doing it in the best of times, and never had an interest in wall street to begin with.

As I come out the other side of financiall ruin my monetary success plan has two elements to it.  The first is a visit to the nearest Coinstar machine to cash in the change accumulated under the couch cushions.  The second more sustaining step thanks to our governments economic policies is to enter a short sale every morning on an S&P eminii futures contract and collect my earnings at the close of the market that day.

As in Kelly's Heros of many years ago.... STOP THE NEGATIVE WAVES..... ODDBALL

I guess you didn't understand my comment.... but as in the movie Kelly's Heros circa 1970... They were all chasing the money and found out it's not about the money... or as ODDBALL put it "ALWAYS WITH THE NEGATIVE WAVES""... America wake up look around you we are far better off than 1970 and while there will always be bumps in the road only NEGATIVE WAVES can prolong the agony. STOP ALL THE NEGATIVITY...

MSg to Les: What is wrong with the people in America is that they listen to much to the Politicians, the only ones that are drinking the wine is the politicians. They are all wearing blinders. Meanwhile its the people that are getting hurt. Sure I am not jealous of the speculators, maybe if I had the opportunity I might do the same. Its the corporate greed, and the Lobbyists that are hurting the economy. If it was up to me and Im thinking about it, is to start a grass roots campaign to send Washington packing and bring in the Mother who cant afford to feed her child, or the factoryworker who has been laid off for years.   Maybe some day some one say enough is enough and vote them all out of office.

As for odballs BOB are you one of the speclators?

Les you are right on taqrget when you say stop sending money overseas, NAFTA was wrong, I think the poor deserve a little help in this country. Oh yes Im for helping,Politicians will tell you its about National Security, but how about internal security for awhile.  

I have to agree with Les also. My feelings are.....in America we're good about screwing each other. While we send all this money to other countries we have people starving here. We fight for the oil in Iraq, but the money spent there could have helped everyone in America buy a hybrid vehicle. Yet gas goes up and "our" politicians give tax breaks to the oil companies. When I think about voting this year, instead of thinking about what will they be able to do for us, I'm worrying about how they are going to screw us. Think about it guys, our politicians are not for "US" they are all about the other country. Boston Tea Party anyone?

Why are you all crying?  If things are so bad stop crying and kill your self.. please

Send a Comment

Comments must be directly related to the blog entry. Comments with offensive language will be deleted. Your e-mail address won't be displayed.

(please, no HTML tags. Web addresses will be hyperlinked):