Wednesday, February 28, 2007

Market Meltdown

There is nothing I can tell you to make you feel better about yesterday’s 400-point-plus drop in the Dow.
“Should’ve seen it coming” is a hollow boast. And the truth is, there were plenty of warning flags waving ahead of the inevitable.
We all saw them.
We all thought it would happen another day.

So, here we are, with the Dow, the NASDAQ and the S&P all off over 3%.

China is being stuck with the bill, but that’s not the entire story. There were myriad elements to the perfect storm that descended on Wall Street…in addition to the China Syndrome, there was the assassination attempt on the Vice President in Afghanistan and the continuing turmoil in Iran coupling with the economic dynamics in play.

The events of 2-27-07 were Newtonian—what goes up, as the markets have, must comer down, as they did…and will again in the future. ‘Tis the cyclical nature of markets to do so.

Yesterday’s drop was not the end of the world as we know it, however. It was a natural phenomenon of the ebb and flow of markets and capitol, and starkly underscored how interconnected the economies of nations have become. China’s markets are not as sophisticated as Western bourses…yet.

I found some of the comments on the Wall Street Journal’s MarketBeat blog to be particularly entertaining last night, especially those that did not directly relate to the day’s activities… Part of the sharp oscillation was the result of a technical anomaly in the data system that manage information for the Dow Jones Industrial Average, which basically became digitally clogged for a few minutes. When the computers caught up with themselves, it appeared to be more drastic than it was. That also fed the fears and jangled the nerves on The Street.

And that’s where the blogged comments picked up the conversation…

“That’s the way it is these days,” sighed Stanley.
“Unless you own stocks who gives a rat’s behind,” groused jh92084ca

To which someone anonymously posted, “That’s a shallow, blind, ignorant comment. Many people can be affected, 401k accounts, etc.”

“Most wall street journal readers do (give a rat’s dorsal terminus). Why are you here (Wall Street Journal blog site)?” posted Rb.

“Good, it’s about time! I guess Bush’s last hiding place is being destroyed. Now he can’t even brag about the stock market, boo hoo!” commented Kent.

And that one got the troops riled:

“Kent, are you 12? Go away!” responded Longhaul.

You are happy after this financial loss across the board only because it will make Bush look bad? How convuluted! I feel sorry for your outlook on life, Kent,” posted by Eric

Bill retorted, “That ‘hiding place’ is the same place we can find Bill Clinton. Without the “hiding place” where would he be? Of course, look at him now, making millions a year giving speeches. Thank you stock market."

“You really are kind of a dufus, jh92084ca. Are you telling me you are completely unaffected–even your 401K and retirement??” quizzed Rolf.

“Kent doesn’t have a 401K. He’s 12,” added Longhaul.

“It really doesn’t matter what the story is these days. Someone is going to tie it into it being Bush’s fault or happy that it makes the President look bad in their eyes. Heck, I even read a story about disappearing Bees the other day and it didn’t fail. Someone was able to draw the conclusion that Bush must behind this as well,” posted givemeabreak.
I’m pretty sure it must have been that damned global warming that caused this stock market crash. I guess Mr. Gore better look into it. That might be a sure clinch on that Nobel Prize!” proposed Skyisfalling.

“This is really not a big deal. So the Dow is a 12,200. The Dow is still higher now than what it was on Nov. 1st. Corrections are a good thing. This is a buying opportunity,” fished Big Tuna.

“Maybe Kent would like Jimmy Carter back in office? Go cash your welfare check and buy another bag of pot,” from an otherwise anonymous poster who changed their screen name to “Kent is an idiot” just for the moment.

“Hmmm…what happens when I press this button? There’s too much money riding on these folks for stupid mistakes like that to occur,” said Sad Day in response to the reports of a computer glitch adding to the anguish of the day.

“This has nothing to do with: Enron, Iraq, Bush, etc. This is simply a well needed correction in a overly optimistic bull market. End of story. This won’t help/hurt Dems in 2008. This won’t help/hurt Reps in 2008. No one will remember by then. But then again, those of you who love to bash Bush for every perceived problem in the world are probably too stupid to understand any of that,” commented Chris.

Bill astutely observed, “You know the globe did not start warming till Bush took over.”

“The people who are happy about the down day in the markets serve to illustrate Rush Limbaugh’s point perfectly: the Democrat Party and their syncophants are only happy when the U.S. military, economy and policies are put in a bad light. The only way Democrats and liberals can succeed is if this country fails. Think about it,” spun Dave.

“It’s too bad most Americans are ignorant about the US Market (as the comments suggest). The market is cyclical and has historically ebbed and flowed (but has always increased). This economy at present is strong…no matter what financial rookies choose to believe. Further, hiccups are common (esp. with bad news re Chinese Exports). To the Rookies: Would you forecast the weather for the rest of the year for the US on New York City’s weather today at 3pm?”

‘Nuff said.

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