“North American stock markets plunged in their biggest, single point-drop in history Friday. The sell-off ended a dismal week that wiped billions of dollars off Bay Street and Wall Street shares.”
http://www.cbc.ca/canada/story/2000/04/1...
“The Dow's plunge was its third 300-point drop in just four weeks, reports CBS News correspondent Anthony Mason. And the Dow has now fallen 800 points, or 6 percent, from its all-time high less than a month ago.”
http://www.cbsnews.com/stories/2007/11/0...
2007-11-07 23:55:38 · 8 answers · asked by Anonymous in Politics & Government ➔ Other - Politics & Government
Just so you know - I knew these would be the kind of responses I get. I'm very, very proud of you, you have all been trained very well.
But just for funsies, know this: Real economic experts are soiling their underclothes. It might be fun for you to tune in and listen to some people who do this for a living.
2007-11-08 00:12:29 · update #1
Great article! Wonder how many people will actually read it?
"The problem originated at the Federal Reserve when Fed-chief Alan Greenspan lowered the Feds Fund Rate to 1% in June 2003 and kept rates perilously low for more than 2 years. Trillions of dollars flowed into the economy through low interest loans creating a massive equity bubble in real estate which drove up housing prices and triggered a speculative frenzy.
The Feds’ “easy money” policy has disrupted the “debt-to-GDP” balance which maintains the integrity of the currency. By expanding circulation debt via low interest rates; Greenspan put the country on the path to hyperinflation and, very likely, the collapse of the monetary system.
The problems at Bear Stearns are the logical upshot of Greenspan’s policies. The over-leveraged hedge funds are a good example of what happens during a “credit boom”. Liquidity flows into the markets and raises the nominal value of all asset classes but, at the same time, GDP continues
2007-11-10 04:29:12 · update #2
So? Ok, the market gave up 2 or 3 percent in one day. I'm still up 27% this year and I'm making more in the markets than I'm making with my salary.
Look at this time as a good time to buy.
How much return have you gotten from your lottery tickets this year?
2007-11-08 00:00:55 · answer #1 · answered by Dr Jello 7 · 2⤊ 4⤋
It's called a "correction" there Sport. It happens. People take profit after a long , extended run of rising prices. And there are "shocks" to the market on occasion. Like a spike in oil prices, major storms that disrupt supplies, etc. Let not your heart be troubled. It's still the best place to be and has been for the last 150 years!
2007-11-08 00:00:35 · answer #2 · answered by Anonymous · 3⤊ 3⤋
Just as the housing market is in a state of "correction", so it goes with the stock market.
All commodities go through this periodically, even oil. The current rise in oil prices is mainly fueled by speculation and not any real shortages.
Relax, have a cookie.
2007-11-08 01:09:00 · answer #3 · answered by Mark A 6 · 0⤊ 2⤋
Just a minor correction, a precursor to the real depression that will hit in 2012 that will be worse than the last one.
2007-11-08 01:24:10 · answer #4 · answered by loginnametaken 3 · 1⤊ 0⤋
Don't look at the day to day ups and downs of the stock market to determine how well its doing, look at its performance over time. In that respect, its doing quite well.
2007-11-08 00:03:57 · answer #5 · answered by Kimpak_myrddin 3 · 2⤊ 4⤋
The market is doing GREAT.... i'm making $3000-$4000 on a single $10,000 investment every other month.
Good luck.
2007-11-08 00:06:02 · answer #6 · answered by runFunning 6 · 2⤊ 5⤋
It was only a 2% drop. Not a big deal.
2007-11-08 00:00:37 · answer #7 · answered by Anonymous · 2⤊ 3⤋
sounds like a great time to buy, thats what i did
2007-11-07 23:59:05 · answer #8 · answered by lyallalterstuart 3 · 3⤊ 3⤋