Date registered: Sep 2004
Vehicle: 83 Astral Silver 280 SL
Location: Planet Houston
Mentioned: 0 Post(s)
Quoted: 7 Post(s)
Stock Market Warning
October 27 thru October 29 is for some reason traditionally bad days for the US stock market. A few years back, it dropped 500 points on Oct 27, kicking in the market "circuit breakers" and shutting down trading for the day. This bad day was the harbringer of the Internet Bubble collapse that followed. In 1929, on Oct 29, the market lost 70% of its value in one day, ushering in the Great Depression.
The market has been showing weakness all month. While no one can predict the stock market, the current conditions of high fuel prices, hurricane-induced productivity and employment declines, a big drop in consumer confidence, along with the continual inablilty of the Federal Government to stop spending money on ruinous wars and pork barrell spending, makes this a particuarlly dangerous October. Of special concern is something we are not hearing much about in the news - perciptous rises in the price of natural gas, way beyond what is going on in the oil markets, are already causing some manufacturing plants to shutdown and layoff people simply because they can't afford the gas. This also indicates energy price increases in electric utility bills of 60% to 90% in some locales will be coming over the next few weeks. Texas Electric, a behemoth electric company in Northern Texas and Southern Oklahoma, has already asked for a 60% increase in utility rates. Couple this with heating oil price increases and diesel fuel price increases, this all adds up to a net outflow of consumer dollars from goods and services markets into energy markets, which is currently transfering this cash overseas, to come back as government debt. All of this does not bode well for the market as we close out the 4th quarter of what has been a very,very bad year for stock investors.
Recall that earlier generations faced down fascism and communism not just with missiles and tanks, but with sturdy alliances and enduring convictions. They understood that our power alone cannot protect us, nor does it entitle us to do as we please. Instead, they knew that our power grows through its prudent use; our security emanates from the justness of our cause, the force of our example, the tempering qualities of humility and restraint.
-President Barack Obama, 1st Inaugural address