So the Dow only sank 128 today after a whistling plunge on the opening bell.

Whoopee. The Fed saved us with their .75% prime adjustment. Or maybe it was the infamous Plunge Protection Team out doing their magic once again.

Whatever.

But I still think anyone out there thinking it's all gonna get better now is either nuts or stupid. I hope they're just nuts. We have medications for that, but there's no fix for stupid. There are so many things wrong with the economy beyond subprime mortgages that I don;t have the energy to categorize them all. Traditionally, when people got scared of stocks they often put their money into real estate. But shit, real estate is sinking faster than the market, so that's not an option this time. That may be one of the things propping up the Dow. People don't know where else to put their dollars. I mean, so you got this IRA in a mutual fund or something. What else ya gonna do with it? I expect a rush on insured instruments like CDs now, with an accompanying weakening of CD interest rates.

And reality WILL catch up. These are not gonna be good times.

or next tuesday.

as people tried to move into them too

you know, it took the stock market something like 20 years to recover from the crash of '29 (which was the last time they de-regulated banks to this extent)

this is pretty darned scary

They are getting desperate, but nothing will work to fend off the inevitable. The chickens are coming home.


Just in time, eggs are getting expensive.

At the cost of rampant inflation for the rest of us. Hell, he's going to throw in another cut next week at the monthly meeting, combined with this one, what do think the price levels will look like in a month? Hell, the SOB might as well have just turned on the presses and let them run, it amounts to the same thing.

And sadly, this was only really a very short term fix. It prevented the markets from cratering today, but the economic fundamentals underlying the markets are still rotten and all he's done is put off the day of reckoning.

As you say, Real Estate sucks worse than stocks.

And, while I long ago put my 401Ks into 100% overseas, even they looked to get hit 10-20% this week. So I thought about switching from overseas into money market.

But, the effect of the rate cut will be to further tank the dollar (which IIRC are ALWAYS denominated in dollars).

So, the only place left to go would be tangible shit. But, you can't put a mutual fund into anything except gold, AFAIK. And, gold - you know, its value gets jerked around by nutjobs and survivalists.

Since I have my hands full with a technical job and dealing with this horrible political mess, I gave up trying to learn finance on the deck of a burning ship.

Instead, I think I will invest in a bottle of good gin (Hendricks) and watch it all burn.

arendt

I know this great place in the Black Forest that we can hike to and drink some very tasty monk-brewed beer...

Gnädige Frau, ich komme.

I guess it all depends on how long it takes to suck us dry.

See ya in Hooverville.

not with the new and improved Hyper-Inflation, now with only half the calories, since it will be all we can afford with that wheelbarrow full of bucks.

negotiations over this fiasco. He is the one that made the policy and he deserves to go crashing down. God he is such a miserable skunk. Let the grown ups take over and right the ship of fools.

outside communications.

Somewhere on the web there is a lovely graphic from Credit Suisse, showing out about 10 years, showing when resets are due.

There are other financial nasties waiting for us...

Ben dropping rates is like trying to bail out the Titanic with a tea cup. 'Tis not going to do a bit of good. Cue the orchestra...

Ladies and Gentlemen they are not rearranging the chairs on the Titanic, they're rearranging them on the HINDENBERG.

Looks like it closed better today. I didn't see your post originated yesterday.