How much wll the stock market drop?

[LD]

The interest rate cut will prop it up for a time, but the concern there is that our debt financed economy will find it harder to attract more investments. Manipulating money supply like that to ward off a recession is tricky, but it's getting close to election time, and a recession would probably ensure a Democrat in the oval office.

[docholly]

Originally Posted by LusciousDelight

The interest rate cut will prop it up for a time, but the concern there is that our debt financed economy will find it harder to attract more investments. Manipulating money supply like that to ward off a recession is tricky, but it's getting close to election time, and a recession would probably ensure a Democrat in the oval office.

It will also ensure that 4 years from now .. whoever is in the white house will be blamed for all the problems. 18-24 yr old voters in 2012 won't remember who the hell GWB and his croneys were that put us in this position and will blame it all on who ever is at the moment.

Wall Street (collectively-US/Hong Kong/Euro etc) is the worlds largest casino.. and it's all a crap shoot. Which is why you should always buy what you love and what you own or at least get a fund that has shares in them.

Encouraging people to put money in to savings is the only real way to stabilize the economy for the long haul. Cutting interest rates is just a very small bandage.

On a semi related note (i didn't want to start a new thread) this was in the Onion today. Pretty amusing.

[Ramster]

Originally Posted by docholly

Encouraging people to put money in to savings is the only real way to stabilize the economy for the long haul. Cutting interest rates is just a very small bandage.

Interest rate cuts in 2000-2001 is what put the economy where it is today with the sub prime mortgage crisis and the fate of the low US dollar around the world.

Hopefully it doesn't happen again. I'm sure foreign investors will be smarter this time around.

[SirMoby]

Originally Posted by Ramster

Interest rate cuts in 2000-2001 is what put the economy where it is today with the sub prime mortgage crisis and the fate of the low US dollar around the world.

Hopefully it doesn't happen again. I'm sure foreign investors will be smarter this time around.

Don't forget about the tax cuts and the borrowing of about $3.5 Trillion dollars.

[JustRobert]

Originally Posted by Ramster

Interest rate cuts in 2000-2001 is what put the economy where it is today with the sub prime mortgage crisis and the fate of the low US dollar around the world.

I totally agree with this. I believe a lot of people have forgotten this. It was a bandaid to curtail a recession for war. Our leaders, in so many words, told the people to go out borrow and spend to keep the country alive which created a much Larger problem.

As docholly stated, most will forget and blame the current leader. I saw last night that some are already blaming democrats for this on the basis that they may win the upcoming election.

[Jim]

Originally Posted by JustRobert

I saw last night that some are already blaming democrats for this on the basis that they may win the upcoming election.

I saw that as well. Mostly people from Fox.

[T Pat]

Originally Posted by docholly

On a semi related note (i didn't want to start a new thread) this was in the Onion today. Pretty amusing.

Now that made me laugh
I've been saying the new president is going to be Barack or Billary for sometime now.

My son called last night all upset, his house is worth less than he paid for it and his 401k took a major hit too. It's a damn shame all I could say was "hang in there and don't dwell on it"