Everything the Fed does seems to send the stock market plunging faster.....

[marmar]

Aren't they supposedly going to offer stop-gap lending to banks until the bailout gets going?

Dow 9,623.53 -331.97
Nasdaq 1,793.70 -69.26
S&P 500 1,018.58 -38.31

www.marketwatch.com

[whistle]

1. The Fed and the Treasury are NOT addressing the real problem for the credit markets

...no confidence!

What banker would lend money or offer credit when there are no guarantees that debt will be repaid?


Buy a house, set up a mortgage, owner loses job and defaults.

It's the economy stupid, no jobs, no future, no light at the end of the tunnel

[Warpy]

3. The real problem is WAGES

that were never indexed to real inflation. How can you have confidence in people's ability to pay their debt if you know they're not getting paid enough to do so?

If they want to fix this economy, that's where they have to start. Throwing money at the rich sure as hell didn't work.

[closeupready]

6. That's correct. And with real inflation running at over 10% per annum,

there needs to be some big adjustments, in my opinion.

[Warpy]

2. The Fed's got nothing to do with it now

This is the correction that should have happened years ago but was forestalled by throwing money at the rich and the corporate while putting the country into debt we're unlikely to be able to get out of.

Panic will likely drive the market lower than it should be. Panic is also a silly reason to act because it makes people do stupid things.

It was nice to have the illusion of money while it lasted. I knew it was an illusion, though. It'll still generate enough for me to live on if I'm not too particular.

[stray cat]

4. There was really a wolf at the door this time

[bemildred]

5. The Fed is impotent now.

They stalled it off for 5-6 years with free money, but that only works for a while.