November 02, 2008

Stock market investors lost $9.5 trillion last month. Remember when we said trillions and trillions and trillions would be lost?

$9,500,000,000,000 Ouch. Thank you realtors. Thank you mortgage brokers. Thank you bankers. You f*cked the world.

This month's sell-off erased more than $9.5 trillion from the value of stocks worldwide, almost one-third of the total value erased this year, as credit-related losses and writedowns by financial firms approached $700 billion. The S&P 500 has slumped 34 percent in 2008.

All but one of the 68 markets tracked by MSCI Inc. declined in October, with 37 losing at least 20 percent. Bulgaria, Peru and Argentina did the worst, plunging more than 36 percent.

24 comments:

Anonymous said...

And just think, if you follow Elliott Wave, which always gets it right, we have 2 more legs down before hitting bottom.

Dow to 5000. Ouch! That's gonna hurt.

Time to buy more DXD.

Amanda said...

"$9,500,000,000,000 Ouch. Thank you realtors. Thank you mortgage brokers. Thank you bankers. You f*cked the world."

Where is the thank you to the personal greed that motivated the buyers and borrowers. Yes, without loans, they couldn't have purchased.
Yes, with out a Realtor or someone else who facilitated the transaction, it wouldn't have been as easy.

However, if one lender said "no," then they went to another lender.... and another.... and another. If one Realtor said that it was too high, or that it would make them house poor, the buyer/borrower went to another and another until they found some one who "tickled their ears."

If we learn anything from this mess, it should be personal responsibility... for what we purchase, for how we live, for who manages OUR money. Being oblivious to the nitnoy of everyday personal responsibility is fun and luxurious. It is someone else's job.

IT IS OUR JOB TO MANAGE OUR MONEY, TO WEIGH RISK AND POTENTIAL FOR GAIN, AND TAKE THE HIT. It is not something you can delegate.

Kind of gotta think, YOURSELF.

Don't blame everyone else.

And currently, I have people telling me that this will recover. My point in the past and is currently, "how much can a family afford?" That limits the purchase price. Self-limiting due to income generated. In Michigan it is kind of leveling off to the mass of people being in the $12 to $14 range (top end of their pay scale.) That puts the max mortgage/debt at about $60k to $80k range.

Anonymous said...

Dow to <= 4,000 ouch, ouch!

psycho said...

I agree with your INDU 500 but what wave do you see us in?

synthetik said...

Which one didn't decrease in value?

soft landing 08 said...

Thank you Keith.
I will miss HP, what will I do all day?
Never trust anyone who gets paid on commission.
Regardless of where we go from here, HP will always be remembered for a good laugh and the occasional food for thought.
I'm buying SDS at S&P 1000. If it crashes again first, oh well, at least I'm not a mortgage-err, bag holder. See ya around.

Disgruntled Baby Boomer said...

Hold on boys.

I tend to agree with Dow at 5000 but I don't expect a fast recovery after that.

Consider that we don't make s$%t in this Country any more. China does. As populations around the world continue to grow and follow our past growth experience, China and India will benefit. We will be sitting on our ass waiting for GDP to grow. After the depression we had WW II and the Baby Boomers to restimulate the economy. Today all we have is construction and services (thanks to Reagan) which just shifts money back and forth among us citizens. No real growth. We don't make squat and will import even more as layoffs and permanent plant closures decimate the remaining industrial base. Oil prices will increase as the rest of the world recovers and we will be stuck pissing away our GDP on energy once again.

So there may be a quick notional upturn in the DJIA but then reality will set in. Just like 1931 to 1934.

gwk said...

You did say stock market right money you basically put at risk like I did and lost $1200 on Apples decline but hey I made it back on Wachovia and AIG that's right AIG and NVDA a company that partners with Apple's high end computers and finally made big on Apple again buying at a very low $86 and selling at a very low $106 so put your 9.5 trillion back up because money is lost and made all the time every day week month year decade century etc etc etc.

Anonymous said...

This is a little misleading. It's inconsistent to view the disappearance of illusory market gains as losses if you aren't willing to do the same with declines in home values.

David said...

"thank you Realtors"

I'm a Realtor, and I hate to admit this, but I never held a gun to anyone's head and told them to sign on the dotted line. I think Keith needs to crawl out of his parents basement and realize that Realtors don't have as much influence as he thinks. People bought houses. People agreed to loans that they couldn't pay back. Check that, they agreed to loans that they now don't feel like paying back. Personal responsibility should have kept this housing downturn in check, but the American people chose to abandon that personal responsibility, and this is where we now stand. Banks are taking it on the chin, and Joe Blow American Used to Be Homeowner walks away relatively unscathed. If you like this lack of personal responsibility, vote Obama on Tuesday. Unless ACORN has already given you a cigarette to vote early.

David said...

to Disgruntled Baby Boomer...

"we don't make SH*T anymore"

We don't? Pick up a copy of the Wall Street Journal and take a look at the GDP figures for the US. Trade deficit isn't good, obviously, but don't get mad at the world just because your previous 401K took a hit. You'll all see the market rebound over the next couple years, and you'll be sad because you won't be living in the Depression, and you'll actually have no one to blame anymore.

laughing all the way to... said...

Those poor banks. Taking it on the chin. All trillion dollars of it. With year-end-bonuses. And of course, we could not possibly expect them to actually make a loan with the credit crisis relief money, could we? They're simply too distraught, what with the way people abused them by taking out liar loans.

Anonymous said...

When will the unwinding begins again.

http://www.bloomberg.com/apps/news?
pid=20601068&sid=aNoYnmqKHwBo&refer=
home

Trichet Extends ECB Power, May Cut Rates at Fastest Pace Ever to 2.5 percent.

The Bank of England will probably also cut its benchmark by 50 basis points, taking it to 4 percent, according to a separate survey.

Anonymous said...

Will Austral Central Bank Cut Rate

http://www.bloomberg.com/apps/
news?pid=20601081&sid=aRja56xUe__g

Australian job-vacancy advertisements fell in October for a sixth month, adding to signs employers may pare hiring as economic growth slows.

``The latest data suggests the global financial crisis has had a substantial impact on the Australian economy,'' Warren Hogan, head of economics at ANZ Bank in Sydney, said in the statement. ``The only weaker outcomes for newspaper job advertisements over the past 23 years were in 1991 and 1982 when the economy experienced recession.''

Australia's unemployment rate probably rose to 4.4 percent in October from 4.3 percent in September, a report will show on Nov. 6, according to the median estimate of 13 economists surveyed by Bloomberg.

Anonymous said...

With Iceland's ruling Independence Party losing support, will Ice Central Bank be forced to reverse course and lower rate.

http://news.yahoo.com/s/afp/
20081101/bs_afp/financeeconomy
icelanddemogovernmentbank_
081101174645

The protesters urged the government to step down and called for the governors of the central bank to be replaced, as organisers urged Icelanders to protest every Saturday until their goal was achieved.

Anonymous said...

Does China need to weaken it's currency.

http://www.bloomberg.com/apps/
news?pid=20601087&sid=adYI9yc
6OrVs&refer=home

China's manufacturing contracted by the most on record last month as the global financial crisis cut demand for exports, a second survey showed.

A government-backed survey released on Nov. 1 also showed a record contraction, adding to concern that the world's fastest- growing economy may slump. Australia reported today that manufacturing shrank by the most since data began in 1992 as the crisis rips across Asia Pacific.

``The very sharp fall in the October PMI confirms that China is more integrated into the global economy than ever,'' said Eric Fishwick, head of economic research at CLSA in Singapore. ``Chinese manufacturers are seeing their order books cut, both at home and abroad, as the world economy falls into recession.''

Anonymous said...

As more Hedge Funds shut down this quarter how many trillions will be lost.

http://www.ft.com/cms/s/0/
34b75b40-a90e-11dd-a19a-
000077b07658,dwp_uuid=
e8477cc4-c820-11db-b0dc-
000b5df10621.html

Ramius, a US hedge fund with $11bn under management, is considering handing back its Hong Kong trading and advisory licences, in a sign that some funds are retreating from Asia.

http://www.reuters.com/article/
hedgeFundsNews/idUSLNE49U01T20
081031

Citadel shutting down its fund of funds portfolio

Citadel Investment Group said Thursday it plans to shut down a $1 billion (617 million pound) portfolio that invests in other hedge funds and put the capital it invested in the fund into other businesses.

George L said...

a lot electronic wealth got wiped out.besides most of this companies were and still are overvalued.

I agree with the prediction of the Dow hitting bottom at 5,000 and it will be a slow and painful road to 5k points,something like an 18 month decline.

anybody thinking of jumping in now to buy stocks or real estate better watch it or you too will get wiped out.

Anonymous said...

Are central banks beginning their second rate cut sooner rather than later.

http://www.marketwatch.com/news/
story/indias-central-bank-
delivers-surprise/story.aspx?
guid=%7BF0DEA20A-4D24-4747-
B4E2-40C6FBAE21C1%7D&dist=msr_20

India's central bank announced surprise cuts to its policy interest rate and to the required reserves for banks Saturday, citing a lower risk of rising prices.

The cut comes on the heels of a full-percentage point reduction to the repo rate on Oct. 20.

The central bank said the policy actions were a reaction to slowing growth worldwide.
"Global financial conditions continue to remain uncertain and unsettled, and early signs of a global recession are becoming evident," it said.

"These developments are being reflected in sharp declines in stock markets across the world and heightened volatility in currency movements. International money markets are yet to regain calm and confidence and return to normal functioning."

DOPES 2 said...

I THINK YOU ARE ALL F.O.S. THE DOW BOTTOMED AT 7,500, IT IS ALL UPHILL FROM HERE BABY!!!

HYPERINFLATION HERE WE COME, RIGHT BACK WHERE BEN WANTS US TO SUCCUMB!!

LA LA LA LA LA LALALALALALAAAAA!!!

DOW TO 20,000!!!!! THIS IS YOUR INFLATION HEDGE YOU TOOLS!!! DUMP YOUR GOLD, AMMO, POPCORN, ETC. AND GET ONBOARD!!!!

TOOLS!

DOLTS!

DOPES!!!!!!!!

Anonymous said...

I'm a Realtor. How did I cause any of this to happen?

vanilla ice said...

"I'm a Realtor. How did I cause any of this to happen?"

You're kidding?!

Disgruntled Baby Boomer said...

The future portends doom. Ford sales down 30% Toyota down 25%. Construction down

I restate we are not going to get out of this until we make hard products for sale internally and for export. Percentage of product vs services continues to decline.

Hedge Funds will bail this month since there are fewer short term hyper gains.

Wait until after XMAS to see the full effect. There will be many warnings to the down side in January.

Dow on the way to 5000.

Obama will not change tax laws in 2009, but rather will let existing regsn the books expire. 2009 will be a constant trend down.

Other than the lemming effect and wishful thinkin, why would anyone invest in the equities market?

Anonymous said...

20 plus years of " the economy goes bad, cut the rates" and " the economy goes good, cut the rates"......bleeding the savers all along the way..............