Market falls on fears bailout won't save economy

[UpInArms]

Source: Reuters

NEW YORK, Oct 3 (Reuters) - Wall Street ended its worst week in seven years with another tumble on Friday on fears a $700 billion financial sector rescue plan won't unlock credit markets or stave off a U.S. recession.

Based on the latest available data, the Dow Jones industrial average .DJI was down 155.95 points, or 1.49 percent, at 10,326.90. The Standard & Poor's 500 Index .SPX was down 14.85 points, or 1.33 percent, at 1,099.43. The Nasdaq Composite Index .IXIC was down 29.33 points, or 1.48 percent, at 1,947.39.

Read more: http://www.reuters.com/article/bondsNews/idUSN0336034820081003

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HUH??? The market "rallies" because it "thinks" Congress will cave and pass the crapweasel sell-the-USA-to-the-highest-bidder bill and now that they gave the farm and the barn and the house away, the market "thinks" this won't "save the economy"??????

:banghead:

[tama]

1. It's called

a "suckers rally".

[OhioChick]

2. Nice. Screwed Again.

K&R

[Warpy]

3. Reuters is full of shit, as usual

A run on hedge funds has more to do with the decline than any fit of pique over getting just what they wanted did.

[gizmo1979]

4. Jerks!nt

[Skink]

5. We are in a recession.

[OhioChick]

6. Shit, Ohio never left that first recession. n/t

[rhett o rick]

22. DUH! nm

[Speck Tater]

7. Decptive use of the words "ON", "AFTER", and "AS"

News writers use those words to imply a causal connection when they have neither knowledge of, nor evidence for such a cause and effect relationship. For example:

Market falls AS O.J. Simpson jury begins deliberation.
Market falls ON discovery of Fossett's plane.
Market soars AFTER Iraq's presidency approves elections law.
Market rebounds ON news of Brittany Spears DUI arrest.

This is an attempt to claim greater knowledge and understanding of the situation than any mere human can possibly posses. The markets have entered a period of chaos and volatility. Trying to explain individual daily moves is futile, because chaotic volatility is inherently unpredictable.

[daleo]

11. Good old "Post hoc ergo propter hoc"

Everyone's favorite fallacy.

http://en.wikipedia.org/wiki/Post_hoc_ergo_propter_hoc

[Igel]

24. But not even phrased as a logical fallacy.

Instead, it's a logical fallacy derived from a conversational implicature.

We assume they're implying a causal link, when they don't even bother to do that, so the fallacy's all ours.

Don't you like how discourse pragmatics can be used to manipulate and obfuscate? (And I reiterate my belief that basic discourse pragmatics and conversational implicatures should be a mandatory part of 9th grade English.)

[daleo]

26. What do you think of the practice known as "lying with the truth"?

Would you put that in the same general category? It seems to have become almost acceptable recently.

[NeoConsSuck]

15. Yesterday, their reasons were used as propaganda

And I'll pick on my favorite target, CNN.COM:

They blamed yesterday's tanking of the market because investors were uncertain about the bailout. That did two things: It made it appear that if any congress person had any ideas about voting no to the bailout, horrible things would follow. This also kept the average joe hoping the bailout would go through.

In actuality, the market tanked yesterday because the bush economy is swirling around the toilet, and yesterday's economic news was terrible, just as bad as today's. But CNN, one of the biggest cheerleaders for the bailout, used yesterday's stock market drop to gain supporters for the bailout through fear.

CNN is a digusting right wing NeoCon mouthpiece.

[Ghost Dog]

27. Well said,

ON reading your post, I thought. :)

[Esra Star]

8. Bread and circuses

You eat the bread, and have your attention distracted by the circuses.
Get with the program.
Economics has always been about smoke and mirrors anyway.
I'm sure they will get some more smoke soon.

[pfitz59]

9. Bailout is a sham

The well has run dry. The treasury and Fed can trot out any numbers they likes, but it doesn't change reality. The Drunken Chimp and his cronies have bled America to death!

[rhett o rick]

21. Close, but the middle class as a whole still has a lot of money. The looting will still go on. nm

[Two Americas]

10. don't be silly

A one day fall on Wall Street before the bailout was the direct result of our refusal to roll over.

But now, we are told that there is no possible connection between the two.

See, you just don't understand how these things work. You probably don't have a degree in economics, that's your problem.

Funny - the crisis was supposedly caused by a break down in trust, and it was "solved" by a campaign of brazen and outrageous dishonesty.

[workinclasszero]

12. Hell I could've told them that

That 700 BILLION is just going to bail out the free trade off shoring bastards that have been killing the middle class for the last 8 years.

Its not going to create one damn job in this country! 700 BILLION down the shithole to save a few fucking millionaires! When the hell are Americans going to say BS WE'VE HAD IT!:mad:

[OhioChick]

13. I couldn't agree with you more. n/t

[Popol Vuh]

14. Hyperinflation

n/t

[NeoConsSuck]

16. Pay attention to the talking heads this month:

what they mean is the '700 billion dollar' bailout won't save the economy, but possibly, a two or three trillion dollar bailout just might work. Wake up people, they are now on the second phase of this plan, which is to get Americans use to the idea that the 700 billion was just a start.

Yesterday, Bloomberg.com quoted Warren Buffet as saying this bailout will probably entail a lot more than 700 billion. As more 'experts' start saying the same thing, it programs the sheep to freely give more.

[MadrasT]

19. That's exactly what the next step will be.

[Wednesdays]

17. So, when's the SECOND bailout bill gonna be introduced?

:puke:

Hey, why stop at a $700 billion giveaway? How about 700 trillion? 700 quadrillion?

[rhett o rick]

20. I believe that this so-called bailout will be good for about 80 days.

About Dec 20, there will be a large bailout requested. Congress will falter and bingo Georgie declares martial law. No messy election needed.

[sarcasmo]

30. A very real scene that could play out, I figured it would be another terror attack, not

Economic Terror.

[rhett o rick]

35. I agree. We didn't get any warning about the coming of the economic disaster. People knew. nm

[stubtoe]

18. The market is a bottomless pit. There's not enough money in the universe to make it happy.

[ForeignSpectator]

23. You all just have no idea how the economy and stuff really works, so shut up!

:sarcasm:

[AntiFascist]

25. It's nice that the market caught on...

too bad its one day too late!!!

No wonder they had to push this through as quickly as possible, using extreme fearmonger tactics with certain House members.

[Myrina]

28. Well, one bright side ...

... it appears now that the formerly-lucrative 'oil speculation' market has dropped off along with the DOW and we're back down around $100/barrel ... and gas prices are falling ... so hopefully the insanity is over and we're finished getting screwed at the pump.


:shrug:

[LynnTheDem]

29. It won't.

The "bailout" that isn't. And won't.

The Rich say "thanks again, suckers!"

[uppityperson]

31. I see it more as some people were hopeful, then realized it was crap and panicked.

Looks like perhaps more people are catching on that this won't save it all.

[slipslidingaway]

32. Banking System Will Need Another $500 Billion: Bill Gross - Pimco

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4142752&mesg_id=4142752

25 Sep 2008

"The banking system needs another $500 billion to survive beyond the $700 billion rescue plan being contemplated by Congress, said Pimco founder Bill Gross.

Gross said on CNBC that the government bailout plan will help free up bank balance sheets so they can start lending again, but will provide only about $50 billion in real capital to the system.

"The plan goes far but it doesn't go far enough in terms of recapitalization," he said. "The banking system and the investment banking system in total really requires about $500 billion more. Where that comes from is still up in the air."

[roamer65]

33. This is only just the beginning. It will cost us another $3T to $5T.

[Javaman]

34. sub 10K here we come. nt