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#403242 - 03/08/09 07:38 AM
Re: Obama's effect on the Dow Jones
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Bukkake Boy
Registered: 01/02/04
Posts: 698
Loc: CA
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Quote:
It took years to fuck things up, it can't be corrected overnight.
This whole financial debacle is manufactured by the use of 'mark-to-market' accounting princibles at banks as required by the federal government instead of 'mark-to-value' accounting. Mark to Market accounting requires banks to value assets in their portfolio at their market value. When fear spread that the housing bubble would pop, banks froze lending. Without new lending, home prices in fact collapsed and the banks created thier own destiny.
Now, if banks were allowed to mark the value of thier real estate portfolio to the actual value - the amount people agreed to pay for the house in their mortgage - everything would be fine because 91% of mortgage holders are still making their payments and the actual value of the contracts havent changed.
So right now banks are taking huge 'losses' writing down the paper value of their real estate portfolios. When the real estate curve trends up, they will take huge 'gains' and all the bank executives will take huge bonuses based on the gains. The whole while, the banks are holding their 'bailout funds' (i.e. very low interest loans) at the federal reserve waiting for inflation - so they can jack mortgage rates back up to the mid teens like the 1980's
So, why is this happening now??? Because in 1932 the mark to market accounting rule was suspended by congress to keep banks afloat during the depression. In 2006, when democrats took over committee chairs, they re-instituted the rule and started stoking the 'recession' flames in every campaign speech (remember, Obama's been campaigning since 2006).
The Democrats did this to cause the recession and get elected. They keep the rule in place so they can ram home their socialist policies and once they get everything they want, they'll remove the rule and **POOF** the recession will dissappear - right before the next election so they can go 'we did it.'
And why will the recession **POOF** dissappear? Because banks have cash requirements based on the value of their assets. Mark to value will mean they have tons of 'extra' cash on hand and they'll start aggressively lending again.
So, yes - things didn't get fucked up overnight. Just when the democrats took over and they did it on purpose in the name of 'social justice' (i.e. wealth redistribution).
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#403245 - 03/12/09 01:37 PM
Re: Obama's effect on the Dow Jones
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Gay For Pay
Registered: 03/07/06
Posts: 1059
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Market was up 239 points today. Great job Obama! Looks like the stimulus plan is working now.
_________________________
Honestly, I don't know...I'm torn. We haven't talked since AVN (other than the hearing in February)- Eric on Bree Olson
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#403247 - 03/23/09 01:35 PM
Re: Obama's effect on the Dow Jones
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Porn Jesus
Registered: 08/03/03
Posts: 5849
Loc: TX, USA
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Last week Obama could not have been more out-of-the-loop with what Treasury was doing when the AIG thing broke.
This week, it's completely Obama's person plan tha Treasury released.
Politics as always...
_________________________
"If they can't picture me with a knife, forcing them to strip in an alley, I don't want any part of it. It's humiliating." - windsock
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#403248 - 03/23/09 09:10 PM
Re: Obama's effect on the Dow Jones
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Max Hardcore Prison Bitch
Registered: 02/06/09
Posts: 274
Loc: My smile invites suspicion as ...
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Coke, you claim your last name is Stevens but I think it's really Barger or Thurber.
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#403249 - 03/26/09 08:46 PM
Re: Obama's effect on the Dow Jones
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Gay For Pay
Registered: 03/07/06
Posts: 1059
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1/20/09 Dow closed at 7949.08 3/26/09 Dow closed at 7924.56 Boy Obama has really destroyed the market!!! It's down nearly 25 whole points!! That damn leftist commie bastard!! Coke, H2C, JRV have a meldown in 3,2,1... 
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Honestly, I don't know...I'm torn. We haven't talked since AVN (other than the hearing in February)- Eric on Bree Olson
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#403250 - 03/27/09 07:23 AM
Re: Obama's effect on the Dow Jones
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Porn Jesus
Registered: 08/03/03
Posts: 5849
Loc: TX, USA
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It's surprising as I don't think there's enough to prop up the market at this point - there's a bank plan, but unemployment is still accelerating and I see not much hope for profits yet, just reduced losses. We'll see - I'm staying in cash for now.
_________________________
"If they can't picture me with a knife, forcing them to strip in an alley, I don't want any part of it. It's humiliating." - windsock
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#403251 - 03/27/09 10:39 PM
Re: Obama's effect on the Dow Jones
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Porn Jesus
Registered: 01/07/06
Posts: 4268
Loc: Portland
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Was the first week of March the nadir of the stock market our are we evidencing a historic dead cat bounce?
Stay tuned for a future posting of three-degree Coke who will advise us of how to manipulate our 401ks, Roth IRAs, and tax returns to take advantage of this historic time period!
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"My people (the real Americans- descended from the original Angle-Saxon pioneers)"-Coke S.
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#403253 - 03/27/09 11:03 PM
Re: Obama's effect on the Dow Jones
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Whoremaster
Registered: 06/22/07
Posts: 2656
Loc: Polekatz, Rte 43
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PS: You realize the high was over 13000 right? And I'd track from the date Obamy locked out Hill for the Dem nomination. Remember, the market only looks forward.
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"You have been banned from making any new posts or sending private messages. The reason for this ban is: meh, cause i can"
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#403254 - 03/27/09 11:11 PM
Re: Obama's effect on the Dow Jones
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Porn Jesus
Registered: 01/07/06
Posts: 4268
Loc: Portland
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Do you also realize that the stock market from 2001-2006 was a big speculative ball of gas that went BUMPPF!!! due to deregulation and shark-profiteering*?
*-gotta keep moving, gotta keep profiteering, gotta keep wages down, down, down...fucking unions...
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"My people (the real Americans- descended from the original Angle-Saxon pioneers)"-Coke S.
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#403258 - 06/01/09 03:32 PM
Re: Obama's effect on the Dow Jones
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Porn Jesus
Registered: 12/28/07
Posts: 4856
Loc: The 4th International
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failure wrote: Quote:
Again, you really took care of my argument!
Who the fuck cares about the CURRENT dow? You realize we're heading for hyperinflation, right? He's doubling our paper money supply by just printing it up and spending borrowed trillions on foolish liberal pet projects.
The DJ index is up approx. 10%. This means that people are attaching more value to their stock (i.e. future prospects of profit) now than in January.
Economics for Simpletons - Lesson #1
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The only thing you got that I want, is your suffering.
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#403261 - 06/01/09 03:57 PM
Re: Obama's effect on the Dow Jones
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Gag Factor Guru
Porn Jesus
Registered: 07/15/05
Posts: 5290
Loc: Dayton
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Quote:
Gee, you really know your shit, Freepedophiliah! 
The only reason the market had dipped from 14,000+ in the first place was panic over the increasing liklihood that Obumba would actually be elected.
Camped here at the horse ranch, I now have horseshit wafting through the windows, and coming from my computer screen.
Dug the following up, FWIW:
-Chuck, Vegetarian fanboy
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