repoman
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In order to get bailed out now?
What do you think?
What do you think?
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Will Wall Street try to crash now before a Sanders presidency?
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Jimmy Higgins
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Why would people be bailed out of a stock crash? TARP happened because the banks were becoming insolvent. Wall Street and the global markets are doing whatever they are doing, whenever they feel like it. Does a Greece default matter anymore? Oil prices are low, sell sell sell... but I thought high oil prices were draining money from the overall economy. The stock market seems more like a bad reality TV show these days.
Cheerful Charlie
Contributor
Nahhhhhhh.
But we are heading to a recession. We get one every 10 years or so. Its the way the world works as economists have pointed out. China has gone from boom to bust and will start the downward cycle. Europe is still wobbly. We are saddled with a know-nothing obstructionist congress doing nothing to face the facts and prepare for a soft landing. Low oil prices is hurting a lot of people. Here in the US and in other nations relying on oil for their economies.
If Bernie wins, he'll be given the blame by the shrill far right haters of course. Or Clinton.
I don't think anyone's overly worried about a Sanders Presidency. Clinton may offer him the VP slot in order to keep his supporters active and engaged and make her look progressive and hip with what all the kids today like and all that, but there aren't any concerns amongst the elite about him getting the top job.
funinspace
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Of course there is also the scary version, where the US markets continue on this year, much like they did in 2008. By November, anything with a D associated on it will be blamed for the crashing economy and even Trump might become electable... After all we are down from our highs of last summer, much like we were down from the summer before in February 2008. 
TV and credit cards
Contributor
At 42% unemployment, what can you expect?Of course there is also the scary version, where the US markets continue on this year, much like they did in 2008. By November, anything with a D associated on it will be blamed for the crashing economy and even Trump might become electable... After all we are down from our highs of last summer, much like we were down from the summer before in February 2008.
TV and credit cards
Contributor
I thought all this cheap oil and warm winter put more money in folks pockets. I thought consumer spending was a major mover of the US economy. So, why is the sky falling? I understand why China is sucking and those that are dependent on a strong Chinese economy (commodities) , but I just don't buy that the US economy is in trouble. I think this is fear driven for US.
Cheerful Charlie
Contributor
Down here in Houston, low oil prices have caused massive unemployment in the oil industry. The real estate market here is collapsing. The "Texas Miracle" is coming to an abrupt end. Deep water drilling can't sustain itself with cheap frack oil prices. All the service companies relying on that are collapsing. Its like 1984 all over again.
Nice Squirrel
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At 42% unemployment, what can you expect?Of course there is also the scary version, where the US markets continue on this year, much like they did in 2008. By November, anything with a D associated on it will be blamed for the crashing economy and even Trump might become electable... After all we are down from our highs of last summer, much like we were down from the summer before in February 2008.
The real unemployment is at 98%
TV and credit cards
Contributor
Oh. I was just including old ladies and babies. You're obviously factoring in people who don't want to get out of bed in the morning.
Harry Bosch
Contributor
Some of the banks were becoming insolvent. Some went out of business. Others were doing fine. The purpose of tarp was really to rebuild confidence that the markets wouldn't completely collapse.
Axulus
Veteran Member
There aren't really indications that the US economy is in trouble. January retail sales picked up and hiring remains strong. Wage growth picked up significantly in January as well.
It is incorrect to say that U.S. stock market drop = U.S. economy in trouble or heading for recession. The two are correlated but there are many other reasons why the US stock market drops other than a US recession.
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Harry Bosch
Contributor
Agreed. The US stock market is tanking because it is so connected to the world stock market. Obviously our exports are down, but they have been in decline for some time. The US economy is sound today.
SimpleDon
Veteran Member
There is really no impact on the economy from the stock market. It is only in people's head. The only reasonable linkage that I have read is the "wealth effect," that when the stock market is doing well, or for example, housing valuations are going up, people will spend more because they feel wealthy. But this is a tenuous connection at best.
99% of business investment is from corporate retained earnings, the sales of corporate bonds or bank loans. No sane CFO would issue new stock or sell reserve stock to finance business expansion. IPOs these days are issued not for new start ups but to take established companies public.
If anything corporations suffer from high stock valuations. The stockholders expect profits commensurate with the stock market valuation of the stock, not the stock issue price, the amount of money that went to the corporation, sometimes, more than a hundred years ago.
Corporations are run by professional managers who don't depend on the stock market to vet their investment decisions.