The dow is crashing right now.

wow... almost down a 1,000 points at one point during the day.

Yeah, now it's around -300. With such easy money and possible Fed buying, I was surprised it hit that low without a major event like Greece going under.

Oh and the currency markets is moving the most I've ever seen. The Yen was up 5%. Usually currencies move .5% and that is a major move, not 5%! That's huge

Why did it drop? I don't understand the stock market at all. :uhoh:

I haven't really been following it much because the news is depressing w/ all this shit happening the past few years. I know that Greece has had a lot of economic trouble, but what is the origin to it? Was it the banks or something?

Greece bailout wasn't enough, still worries that it won't be passed by Germany. Then Greece overall is tiny, so if they can't handle Greece, and Spain is worse off and bigger, that is only making people more scared. Plus the markets got way ahead of other economic growth, with easy money policies. Everyone scared of PIIGS(Portugal, Spain, Ireland, Italy, Greece) going under taking out the Eurozone, while China is a massive bubble cooling off.

 

Make any sense?

I haven't really been following it much because the news is depressing w/ all this shit happening the past few years. I know that Greece has had a lot of economic trouble, but what is the origin to it? Was it the banks or something?

 

Massive corrupt government. They don't know how many employees are even on their payroll. They pay many 14 month's pay for 12 months or less of work. They got a copious amount of money to run their social programs from borrowing, and now their economy is doing bad and can't make ends meet. Like maxing out all your credit cards on clothes then losing your job, you can't keep going.

 

Like PIIGS, they spent far more on socialized programs then they had, and now they can't make ends meet.(Sound familiar? we're in the same boat, just we have a little more time to borrow and pretend like we're ok)

 

So people fleeing to the dollar and Treasury bills because of Europe debt, will get that but worse with the dollar because in the long run we're in worse shape.

I guess so basically if they can't handle Greece, (which is in bad shape but not as bad as Spain) then they'll never be able to handle by Spain.

 

What do you mean by the Eurozone?

 

I'm not too savy with economic stuff, so it sort of makes sense.

Massive corrupt government. They don't know how many employees are even on their payroll. They pay many 14 month's pay for 12 months or less of work. They got a copious amount of money to run their social programs from borrowing, and now their economy is doing bad and can't make ends meet. Like maxing out all your credit cards on clothes then losing your job, you can't keep going.

 

Like PIIGS, they spent far more on socialized programs then they had, and now they can't make ends meet.(Sound familiar? we're in the same boat, just we have a little more time to borrow and pretend like we're ok)

 

So people fleeing to the dollar and Treasury bills because of Europe debt, will get that but worse with the dollar because in the long run we're in worse shape.

 

hmm... sounds extremely familular (having these huge programs wanting to get passed through *cough*health care *cough* that can't be paid for).

 

The more and more I hear about the economy, jobs, etc. the more bleak I feel the future is. It seems like it's so bad that I don't see how you can dig yourself out of the hole... at least I hope I'm wrong

Hello! :wacko:

I guess so basically if they can't handle Greece, (which is in bad shape but not as bad as Spain) then they'll never be able to handle by Spain.

 

What do you mean by the Eurozone?

 

I'm not too savy with economic stuff, so it sort of makes sense.

 

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

hmm... sounds extremely familular (having these huge programs wanting to get passed through *cough*health care *cough* that can't be paid for).

 

The more and more I hear about the economy, jobs, etc. the more bleak I feel the future is. It seems like it's so bad that I don't see how you can dig yourself out of the hole... at least I hope I'm wrong

 

We're still the biggest and wealthiest economy. We will be that for a long time, don't get me wrong. However we have a lot of pain coming and a lot of trouble. But overall we're still be better than most the world.

ok... now it makes more sense.

Now this is perfect timing for the bond market. The Fed pulled its bond purchasing program this year.(Printing money and buying Treasury bills because we didn't have enough demand). But now with Eurozone worries people are buying Tbills and keeping rates low which will help the economy in the short term. If not the Tbills would skyrocket and rates across the board(mortgage rates) would rise.

We're still the biggest and wealthiest economy. We will be that for a long time, don't get me wrong. However we have a lot of pain coming and a lot of trouble. But overall we're still be better than most the world.

 

yeah... but I mean also I'm worried about how much China owns of the country. I mean I saw an episode of Glenn Beck (he's a bit too crazy, but he brings up good points at times and is entertaining), saying that our situation with China is similar so the UK's situation w/ the US in WWI-WWII in that we bought their debt and then were able to sort of control the goods the bought.

 

I guess overall I'm just annoyed how Obama hasn't focused on the economy and jobs, when that should be the priority.

Are you an economy major nick? :lol:

 

you sure know a lot about this stuff.

yeah... but I mean also I'm worried about how much China owns of the country. I mean I saw an episode of Glenn Beck (he's a bit too crazy, but he brings up good points at times and is entertaining), saying that our situation with China is similar so the UK's situation w/ the US in WWI-WWII in that we bought their debt and then were able to sort of control the goods the bought.

 

I guess overall I'm just annoyed how Obama hasn't focused on the economy and jobs, when that should be the priority.

 

Obama shouldn't focus on the jobs or the economy because there is little he can do, only make it worse. It is bad how much debt China and Japan own, they can use that to make us their bitch. However, they are heavily tied to us right now, they take us out, they're dead too. Still it's horrible to be in debt to any foreign nation, because eventually they can gain the upper hand from that and hold us hostage.

 

When the Chinese real estate and market bubble pops, it's going to be bad for the global markets, because so much of this "recovery" was based on the Chinese bubble from inflation.

So it seems that it's going to get even more worse before it gets better (if the chinese bubble pops)...ugh.

 

At this point what do you think the solution would be to fix this mess (jobs, bad US and World Economy)? both ideally and realistically.

So it seems that it's going to get even more worse before it gets better (if the chinese bubble pops)...ugh.

 

At this point what do you think the solution would be to fix this mess (jobs, bad US and World Economy)? both ideally and realistically.

 

Yeah at some point. China will eventually pop, it's yet to be determined when and how bad. They have been putting on the "breaks" recently, raising reserve ratios in banks to mop up excess inflation, and new rules on buying houses to curb speculation. However it's still a bubble, you can't easily deflate them but possibly soften the blow.

 

Then we have Spain which is in bad shape. Ireland is too, and maybe Italy, I'm not sure about Italy.

 

I don't know how bad the Eurozone problem will affect us. Because I'm not sure how connected we are, with exports and imports. Asia is more connected to Europe than we are. There is news now that human error today caused the market to go down today. The market was already down, but how much was error now or Greece, it's yet to be seen.

Yes you are. Make him buy you something nice. I was going to buy the girl I was talking to something nice but she decided to go out with my friend instead. I like buying people things, it's weird.

 

Aww what a bitch, I'd never date your friend, Dex.

 

He did buy me a necklace once... for full price like a month after we started dating. But he's slacking off, clearly.

Are you an economy major nick? :lol:

 

you sure know a lot about this stuff.

 

Social Science right now, for my Bachelors I'm doing Economics.

 

Aww what a bitch, I'd never date your friend, Dex.

 

He did buy me a necklace once... for full price like a month after we started dating. But he's slacking off, clearly.

 

Drop a few hints for him to buy you something.

Social Science right now, for my Bachelors I'm doing Economics.

 

 

 

Drop a few hints for him to buy you something.

 

ah cool... any ideas what you want to do as a career? (teacher, politician, economist?)

Drug dealer.

 

To be honest, I'm not sure. I love investing but it's a hard career, survival of the fittest. I guess I'll finish my degree and search for what area I want to be in.

:lol:

 

ok cool.