I put Middle Earth Journal in hiatus in May of 2008 and moved to Newshoggers.
I temporarily reopened Middle Earth Journal when Newshoggers shut it's doors but I was invited to Participate at The Moderate Voice so Middle Earth Journal is once again in hiatus.

Wednesday, November 07, 2007

Thanks Alan

Well I'm a little poorer tonight. Not as poorer as I could be since only about 25% of my investments are in the US but still poorer. And I have Alan Greenspan and the Bush Administration to thank. In 2004 Greenspan was still pushing the "creative" lending packages that many were already were concerned about. The reason was to keep the bubble inflated through the 2004 election. Well Big Al's chickens have come home to roost. Of course ignoring the inevitable oil shortages since Reagan was elected has not helped any and neither has George W. Bush's mortgaging the country to finance his occupation of Iraq.
Stocks Tumble on Weak Dollar and Oil Prices
Stock markets were hit today by their second sharp sell-off in less than a week, sending the Dow Jones industrial average down 360 points to a level last seen in September, before the Federal Reserve cut interest rates.

Banks and brokerage firms led the steep declines as investors remained skittish about lingering fallout from the summer’s subprime mortgage crisis. The dollar hit a new low against the euro and analysts predicted a broad fourth-quarter slowdown in businesses and consumer spending.

The Dow industrials declined 2.64 percent, to 13,300.02, its lowest finish in nearly two months. The Standard & Poor’s 500-stock index tumbled 44.65 points, or 2.94 percent, to 1,475.62. The Nasdaq composite index fell 76.42 points, or 2.7 percent, to 2,748.76.

Stocks dropped from the opening bell and never recovered, with the sell-off accelerating in the final hour of trading. General Motors weighed down the Dow after announcing the biggest quarterly loss in company history. G.M. is considered something of a bellwether for the broader business climate.

Financial stocks were off by more than 3 percent for the day. Investors remain wary that investment banks will announce more write-downs of assets related to mortgage-backed securities.
When you see the train coming you should get off of the tracks. Politics won.

1 comment:

  1. "Free trade" and the lack of energy independence is killing the dollar. We have had twenty five years of Reaganomics (yes I'm counting the Clinton years too) and sadly the best days for America for over. Greed, deregulation, lack of vision and "trickle down economics" did us in. Anyone who thinks that their children will be better off is either rich or crazy.


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