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Forum Post: Why is the stock market taking a "dump"

Posted 7 years ago on Nov. 14, 2012, 2:11 p.m. EST by Shayneh (-482)
This content is user submitted and not an official statement

Since Obamas re-election the stock market has droppeb by over 500 points - today it is -75 points. So, what's going on?

I guess the Republicans are to blame -



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[-] 2 points by elf3 (4161) 7 years ago

republicans pull and liquidate their assets because they believe Obama wants to take it all (it's just another part of their speculation game.) You know the games that got us into this mess in the first place. Can you say derivatives? The Wall Street journal announced a few days before the election that Obama is anti-business. Funny since he's taken so much of our tax money and stuffed it right in their pockets... ahh but you see the rich do best when mainstreet is tanking - they get to buy things cheap and stockpile their assets, cut wages and labor, raise prices, then when the economy is about to go over the cliff they bail. Yes business doesn't rally around the American people somehow we are supposed to rally around them. They stuff our money in their pockets then throw game across the room right when we are starting to gain some ground so we never have the chance to win it back.

[-] 1 points by Middleaged (5140) 7 years ago

Good Points all. Businesses don't want solutions for everyone or most people. They want an unfair advantage. maybe that is the nature of capitalism. We all want a monopoly to get the big money. Stocks seem like a game now 1) Algo-Trading can manipulate the price of anying in any of our markets 2) Big guys can ride out 20% loss in price and Reinvest at the bottom 3) Big Banks can buy and sell at the same time making money on the differences in prices using bailout money from the Federal Reserve 4) They have something called a Return on Capital where they set up a Limited Partnership with a big dividend, but in a pipeline company if they don't put money into the maintenance of equipment the price of the stock is actually artificial, the stock may crash in pipeline explosions or blowouts or fires, you get killed on the stock price, they can disolve the stock, and they still keep the equipment to reform a new company stock at a higher price again. So...Some stocks are not investments, ...there is no growth except through more debt till the next blowout or bancrupcy. Maybe the Value of the stock doesn't increase really with all the mergers and new debt.

[-] 1 points by Underdog (2971) from Clermont, FL 7 years ago

There are at least 3 reasons why people are getting out:

1) Continued turmoil in the Eurozone with no end in sight. Spain's unemployment rate is now 25%, which equals the U$A during the height of the Great Depression. How would you like to be living there right now?

2) October and November are typically down-trending months for the stock market as people pull out money for Xmas spending. Go back and look at the trends long-term. Very predictable.

3) Until the Fiscal Cliff is resolved there would be anxiety regardless of who was elected. It is true that Wall Street would have preferred Romney rather than Obama, but that is owing to their naturally sick pathology of placing money over people, and We The People realize they are sick narcissistic bastards. That is why We The People would rather remain poor and have someone who at least appears to have our best interest at heart rather than a plutocratic puppet like Romney who would serve the interests of the power-elite class, of which he is also a member, and would work to shove the rest of the middle and lower class farther out into the street.

[-] 1 points by Middleaged (5140) 7 years ago

I just wrote this up on separate post.

Yes, it is some End of year Selling, Some getting out of Dividend Stocks, and Obama's re-elections and pushing for higher stocks. But also some about deficit spending and ...A Lot about Global Recession, Over-Supply of Gas due to slow down of Global Economy, Over-Supply of Natural Gas, and Over-Supply of Dry Goods.


No One Is Dealing with Economic Issues:

A) Solutions to Depression in Greece, Spain, Portugal, Ireland, & Italy
B) Solutions to Recession in the Whole Euro-Zone & East European Countries
C) Slower Growth IN China, Brazil, Russia, Japan, India
D) Causes of Global Slow Down, Causes of Lower US Investment, Lower Global Trade
E) Solutions for Increased Investment in US Small Businesses, or how to Create an Enviroment for Small Businesses to Thrive
F) Possible Presidential Leadership nationwide asking for Americans to Study the problems that have lead to our Retirement Crisis ... and Economic Crisis (What you didn't know there was a Financial Crisis?)

[-] 1 points by Shule (2638) 7 years ago

Normal business cycle; the trough of the wave is due. Only problem there is no money in federal kitty to cushion the downturn.

[-] 1 points by JesseHeffran (3903) 7 years ago

See, the thing is that this generation of investors and entrepreneurs are lazy and suffer from entitlement syndrome. If law givers are elected that don't grovel and beg at the feet of the investor class, they get all uptight and take their toys home. It's a classic case of being spoiled. They pulled the same shit when they did not get their TARP money in '08.

But I guess the parents and society are to blame.

[-] 1 points by Middleaged (5140) 7 years ago

They are Whiners. And their job is not to fix the nation. But they want to complain and whine ...but they aren't trying to fix anything. The mission of the business is lower costs, increase revenues, reduce risks, make more profit. Actually, I think as they loot the corporate coffers with huge complex compensation packages... the emphasis is getting their bonus and increasing personal wealth ...no one looks at the Admin Costs. Remember in the 1970s ...all these Charities were discovered to have admin costs of over 50% ...United Way


[-] 2 points by JesseHeffran (3903) 7 years ago

I honestly believe the stock market is one giant Pavlovian Bell. It only takes a few high end traders pulling their money, and the whole nation begins to salivate.

[-] 1 points by Middleaged (5140) 7 years ago

Yeah. Today I'm thinking ... have you ever looked at Candle Stick Charts for stock market on http://stockcharts.com/h-sc/ui There is a Tutorial here: http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis And then put in Symbol for Oil Pipeline stock ...like KMP, LINE, CPNO, EEP, EROC, EPT ...

Well...oh well looks like it was just a week to go after all those. Soilid Candle Stick indicates heavy Sell Pressure (red).

[-] 1 points by TrevorMnemonic (5827) 7 years ago

Actually I know at 535 other people that deserve blame in the government.

And don't forget about all the corrupt banksters stealing homes and crushing the economy.

[-] 1 points by SingleVoice (158) 7 years ago

People are selling off their stocks before their taxes go up at the end of the year.

[-] 1 points by MattLHolck (16833) from San Diego, CA 7 years ago

people with stocks are

[-] 0 points by GirlFriday (17435) 7 years ago

People are pulling their money out of the bank and getting rid of their stocks to get rid of the bs.

I am actually encountering older people that are doing this.

[-] 3 points by DKAtoday (33802) from Coon Rapids, MN 7 years ago

The older people have better background in the teachings from the great depression.

[-] 2 points by gnomunny (6819) from St Louis, MO 7 years ago

Unfortunately, they're almost all gone. My mom could s t r e t c h a pound of hamburger in some very creative ways. RIP mom 2008.

[-] 1 points by DKAtoday (33802) from Coon Rapids, MN 7 years ago

Sorry for your loss - I know its been a few years - but that loss is always felt. My Dad passed in 2008 but I am fortunate to still have my mom around - you should have seen some of her inventiveness on how to make dinner out of nothing - it was nothing short of magic at times.

[-] 2 points by gnomunny (6819) from St Louis, MO 7 years ago

I can relate! My mom took it to extremes sometimes, though. Just because you make the burgers smaller doesn't mean you get MORE burger, heheheh.

That definitely comes from being a family of nine back in the thirties.

[-] 1 points by DKAtoday (33802) from Coon Rapids, MN 7 years ago

How about trying to give your spaghetti sauce some flavor cause you only had catchup so you sprinkled in some red pepper - only the top fell off and you added the whole jar - LOL - every one ate it though - you do not throw out food - especially when there is nothing else.

[-] 2 points by gnomunny (6819) from St Louis, MO 7 years ago

That was obviously a memorable dinner!

[-] 1 points by DKAtoday (33802) from Coon Rapids, MN 7 years ago

OH YEAH - we still tease her to this day.

[-] 2 points by gnomunny (6819) from St Louis, MO 7 years ago

If you don't mind me asking, how old is she? Hopefully she's not in a retirement home.

[-] 0 points by DKAtoday (33802) from Coon Rapids, MN 7 years ago

She is 88 going on 18 - she still has her own place - her and my step-dad.

[-] 2 points by gnomunny (6819) from St Louis, MO 7 years ago

Wow. That's great she's still able to get around. Not sure how much experience you have with retirement homes, but it's best if you avoid them if at all possible. Those aren't really the best places for someone to spend their remaining years. Even the absolute best of them is still a sad, depressing place to be.

[-] 0 points by DKAtoday (33802) from Coon Rapids, MN 7 years ago

Yeah yeah I know - someone please shoot me before ever thinking of putting me in one. My Grandma was fortunate also - she had her own place to the day she died - was very sharp mentally.

[-] 1 points by gnomunny (6819) from St Louis, MO 7 years ago

I had a feeling I wasn't telling you something you didn't already know. They were one of my least favorite places to deliver to. And also the abuse my grandmother got back in the '70's at a couple of them. I was too young to pay much attention, but remember my mom and uncles talking about it.

[-] 0 points by DKAtoday (33802) from Coon Rapids, MN 7 years ago

Yeah - my Grandpa poor guy spent his last years in a nursing home - he got Alzheimer's and so needed care my Grandma couldn't give him. Tough on him in his moments of clarity. He worked on the Alaskan Highway and worked the Rodeos - man some of the stories he had - pictures to back em up too.

[-] 1 points by GirlFriday (17435) 7 years ago

Yep. That is exactly it.

[-] 0 points by DKAtoday (33802) from Coon Rapids, MN 7 years ago

Can't really blame them for being late to act - as they are not getting good information from MSM. But word is getting round - pull out before the next major drop.

BTW - did you see Occupy's call to support the black Friday strikes?

[-] -1 points by GirlFriday (17435) 7 years ago

Actually, this has been going on for some time.

Yes. I did.

[-] 0 points by DKAtoday (33802) from Coon Rapids, MN 7 years ago

Perhaps another lesson from the great depression put into practice. Don't make a run on the bank or they will close their doors - do it more gradual. Still the end of the year is coming up and there will likely be some sort of panic over the tax cuts running out along with the budget cuts that are slated to kick in.

Great to see the black Friday support called for.

[-] 0 points by DKAtoday (33802) from Coon Rapids, MN 7 years ago

Sure they aren't getting out to avoid the next dive due to toxic/criminal practices?

People shred your credit cards and move your accounts to a local credit union or local bank that is not a mega monster subsidiary or associate.

[-] 1 points by SingleVoice (158) 7 years ago

I did that in 2009...My money's in a credit union and I don't use credit cards.

[-] 0 points by DKAtoday (33802) from Coon Rapids, MN 7 years ago

Good you have been ahead of the game as compared to many. My last credit card was when I was 18 - did not see the necessity to spend money I did not have yet - so I cut it up.

[-] 1 points by SingleVoice (158) 7 years ago

I actually never owned a credit card because I was taught to not spend money I didn't have and to never go into debt unless it was a mortgage I could afford. My parents were old school and so am I.

[-] 0 points by DKAtoday (33802) from Coon Rapids, MN 7 years ago

Good lessons to have been taught by your folks. Good that you listened. Cash and Carry whenever possible.

[-] 1 points by SingleVoice (158) 7 years ago

Yes...and I hope I've taught my son the same lessons...

Wow...we actually agree on something... :)

[-] 0 points by DKAtoday (33802) from Coon Rapids, MN 7 years ago

Nothing is impossible - no matter how improbable.

[-] 1 points by SingleVoice (158) 7 years ago

Good answer...Have a good evening...I'm outta here.

[-] 0 points by DKAtoday (33802) from Coon Rapids, MN 7 years ago

Later on.

[-] -2 points by ftrp (-95) 7 years ago

you're correct. dump now and avoid the incoming huge capital gains taxes . had romney won , the stock market would be going up.

[-] 1 points by DKAtoday (33802) from Coon Rapids, MN 7 years ago

Stock market continues to shit you say? Could have something to do with their business practices? You know the toxic and downright criminal practices?

[-] 1 points by stevebol (1269) from Milwaukee, WI 7 years ago

Keep on obstructing and we'll put people in office who will make Obama look like Grover Norquist.

[-] 1 points by SingleVoice (158) 7 years ago

No one is obstructing....they are just dealing with what they see coming. They're not stupid. The taxes on capital gains from stocks are going up as is taxes for all of us. There's 13 hidden taxes in the healthcare law as well as the other taxes that expire at the end of the year.

[-] 0 points by john23 (-272) 7 years ago

Uncertainty from fiscal cliff...plus some of the retail earnings this quarter weren't as high as expected.

I think the market also realizes that the QEs have been falsley propping up the stock market...couple with the coming fiscal cliff it leaves a lot of uncertainty.

Some might argue "housing is coming back"....fake recovery. Anytime you drop interest rates close to zero and pump billions/trillions into the economy you're sure to spur housing.....the spooky thing is at how slow and insignificant the housing recovery has been with the enormity of the amount of stimilus directed at it right now.

[-] -1 points by hchc (3297) from Tampa, FL 7 years ago

They are all to blame. If it was all Republicans, they would attempt to cut and cut, but you cant cut your way out of this, still leads to the bottom.

Cant tax your way out of it either.

And I honestly dont think Congress is capable of putting something together that is a blend of the two and would lead to anything remotely close to meaningful.

No talk of ending the wars. No talk of ending the Fed (over 3 TRILLION given to Wall st in the last 3 yrs- no one says shit about it), and no talk about massive reformation of tax and trade policy.

Just talk about a couple percentage points in the income tax brackets, and reforms to SS. Like that is gonna do fuckin shit.

This whole thing is a joke. They are going to keep bleeding us out, slowly, and it will happen slow enough that the people will be too busy rushing Walmarts on Thanksgiving to notice.

[-] -1 points by GirlFriday (17435) 7 years ago

How much do you get paid to post?

[+] -4 points by Shayneh (-482) 7 years ago

I don't but I sure like to watch the news to see what's going on with our country and right now it doesn't look good .

But hey, the people wanted change and they voted for it - Obama -

[-] 0 points by jrhirsch (4714) from Sun City, CA 7 years ago

In early 2009 the market was at 6627, now it's at 12,660. More than a 90% increase. Looks like the stock market has increased dramatically over the last 3 1/2 years of Obama's Presidency.

Obama has plenty of serious flaws, but this is just pure partisan B.S. being dumped out to discredit him. The person doing the dumping should use a restroom instead of this forum.

[-] 2 points by SingleVoice (158) 7 years ago

The growth of the stock market had more to do with the Fed input of quantitative easing (QE1, 2 & 3) than of any good in the economy. The printing of money only hurts the rest of us but drives down interest so the banks and corporations can borrow at record low interest. The stock market (Dow Jones) is mostly made up of these banks and corporations. The rise in the stock market did help people with pensions and 401k's but those people will be hurt now as the big sell off has begun.

[-] 1 points by Middleaged (5140) 7 years ago

You are right. We have been in another bull Market for 2 years or more.

[-] -2 points by Shayneh (-482) 7 years ago

Well, it was around 13,000 prior to the bust. So I guess it's great that we are back where we started from. Look at the stocks and what they were selling for 4 years ago befor the bust and look at them now.

Then tell me just how great things are.

[-] 2 points by jrhirsch (4714) from Sun City, CA 7 years ago

The peak was 14,066 on October 5th of 2007. When Bush left office in January of 2009 it was in freefall at 8,077. Look at the facts instead repeating someone else's opinion. I abhor Obama at least as much as you do, but why distort the truth to discredit him? He has dozens of much more serious flaws that need to be exposed.


[-] 0 points by GirlFriday (17435) 7 years ago

So, you come here because you watch MSM AND you don't like Obama.

How much do you get paid to post, again?

[-] -1 points by Shayneh (-482) 7 years ago

I don't watch MSM and have nothing personal against Obama - he just doesn't have the experience to "know how to grow the economy".

Tell me how does "bailing out the banks" make the economy grow?

How does investing in failed solar companies make the economy grow?

If Obama knew how to manage and make the economy grow, he wouldn't be criticizing the wealthy but instead embrace them and work with them to improve the economy.

Today he held a "business meeting" with several mega businesses to discuss how to improve the economy. He won't be there and will have someone else there to do the talking for him.

Tell me - do you think mega businesses are going to grow the economy when in fact the economy is run by 75% of small businesses?

Just goes to show he doesn't have a clue as to who to talk to - in "abstantia".

[-] 1 points by jph (2652) 7 years ago

"make the economy grow" really? What does that mean exactly? Increase consumption? Tell me, how does using your limited and dwindling resources more quickly, help you when the resources run out? How does "make the economy grow" actually help people ? jobs? working for the 1% who only care about growth of profits,. is that really what we need??

[-] -3 points by Shayneh (-482) 7 years ago

DOW down again by another 123 points - another great day on Wall Street - 401K's taking a dump. Makes retired people feel really great.