Comments on: Stocks Plunge Worldwide

By: David

David — Tue, 22 Jan 2008 10:30:08 +0000

Wow Jimmy, way to completely throw out a ridicules strawman! Just keep voting to bankrupt America while claiming to be a patriot, OK? BTW, we don’t get to decide when the bonds get cashed in, they do, and if they do, we are truly screwed. You however, choose to trust the communists to play nice because the morons you keep voting for tell you that borrowing trillions from communists and Arabs is better than paying taxes. It’s coming home to roost now, maybe you could at least admit that it’s your fault for being a gullible fool.

By: Jimmy the Dhimmi

Jimmy the Dhimmi — Tue, 22 Jan 2008 02:27:33 +0000

Gee, the way we got in this mess was by borrowing a billion a day from red China so letâ€™s borrrow some more and give it out to people that will fix it!

Cash in all the treasury bonds owned by China and then blockade all their future foreign investment; watch the stock market then, dude.

By: Joshua

Joshua — Tue, 22 Jan 2008 02:01:12 +0000

Volokh Conspiracy's Russell Korobkin has weighed in on the stimulus package too, and he seems to think it's pretty daft. As do most of the commentators there, and as do I. Actually it's more than daft. As some of the aforementioned VC commentators pointed out, one-time tax rebates are political ploys above all else. One, it's a way for elected officials to give the appearance of doing something about a tanking economy. Two, it's a direct economic payoff to their constituents. You might even call it pork taken to the individual voter level.

By: mw

mw — Mon, 21 Jan 2008 22:32:14 +0000

It seems a bit of reach to suggest that GWB’s 1% US GDP stimulus plan could trigger a world wide stock market meltdown. Some guys on CNBC’s Fast money show were predicting a major meltdown in the US markets on Tuesday (tomorrow), for a combination of technical and sentiment reasons. I am not a stock market technician, but my understanding of the rationale, was something like this ~

Friday was an option expiration day, and a lot of institutional portfolio hedges (in the form of puts) expired, without evidence of them being reapplied to the same degree in future months. If there is fear of continued downturn, those hedges will be reapplied on Tuesday which could fuel a major downdraft. The same analyst said this could signal the market bottom if there is high enough volume.

If the big downdraft occurs, I’m stick my neck out and guess the market will be 20%+ higher at end of the year than the prices at end of day tomorrow. They say the time to buy is when there is “blood in the streets” I’ll probably do some buying. Probably.

By: David

David — Mon, 21 Jan 2008 21:38:21 +0000

Gee, the way we got in this mess was by borrowing a billion a day from red China so let’s borrrow some more and give it out to people that will fix it! Jimmy thinks we need to borrow a whole lot more and give it to all of the billionares so the market will always go up. That’s his idea of “Free Markets”. Very conservative of you.

By: Elisabetta

Elisabetta — Mon, 21 Jan 2008 20:47:07 +0000

The fact that investors don’t like this package should make some people here happy.

By: Jimmy the Dhimmi

Jimmy the Dhimmi — Mon, 21 Jan 2008 19:48:41 +0000

The honest-to-god reason for this is because the stimulus package doesn’t go far enough to, how would you say, “cut taxes for the rich.”

Time and time again you write how you don’t want to see the investor class retain more of the wealth they earn, so you really shouldn’t complain about this, Justin.