Wall St. Down, Recession Fears Kick In

By Jeralyn, Section Off Topic
Posted on Tue Oct 14, 2008 at 02:24:00 PM EST
Tags: bailout (all tags)

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Yesterday's stock market gains didn't last through today. The Dow closed down today , due to fears of recession.

Two stocks that gained: Citigroup and Bank of America.

The AP has more on today's 200 point drop.

On a related note, GMAC told General Motors car dealers yesterday only people with credit scores above 700 will get new car loans. That's going to leave a lot of unsold cars on the GM dealers' lots. Cars the dealerships may own but be financing and paying interest on. How long can they hold out? [More...]

If the car dealerships go under, a lot of people will lose jobs -- not just in sales but in the service departments, including mechanics and the like.

While many car loans are now made through banks and credit unions, GMAC is still a pretty big player.

< McCain Offers Economic Plan: More Tax Cuts | House Report: Can't Assess Cheney Role in PlameGate; Stymied by Executive Privilege Claims >

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Wall St. Down, Recession Fears Kick In | 52 comments (52 topical)

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Wall Street up. . . (5.00 / 2) (#1)
by LarryInNYC on Tue Oct 14, 2008 at 02:25:51 PM EST

900 points on Obama's economic platform speech.

Down 200 points on McCain's.

Just sayin'.

It's kinda funny (5.00 / 0) (#10)
by Steve M on Tue Oct 14, 2008 at 02:44:54 PM EST

since Larry Kudlow and other GOP hacks have really been pushing this "the market is down because people are scared of an Obama presidency" over the last few months.

I wonder if anyone asked Kudlow whether his theory was still operative after the Dow set a record on Friday.


Ahh, (5.00 / 1) (#12)
by andgarden on Tue Oct 14, 2008 at 02:46:59 PM EST

Kudlow:

Now, if only McCain can succeed in selling these measures. Especially the corporate tax cut, which should be sold as a middle-class consumer tax cut inasmuch as corporations pass along their tax costs to consumers in the form of higher prices. This is the key to selling the corporate tax cut. McCain's senior advisors tell me he has been briefed on this language, but so far it hasn't materialized in the debates. Perhaps it will Wednesday night.

heh


Yeah (5.00 / 1) (#14)
by Steve M on Tue Oct 14, 2008 at 02:49:46 PM EST

if you pay close attention, though, the McCain campaign has been successful in convincing some of the stenographers in the press corps to present their tax plan as something aimed squarely at the middle class. Only when you look at it, you realize wait, how the heck does this help the middle class? Only if you believe in discredited trickle-down crap.


: Kudlow's voodoo dolls are ready (5.00 / 0) (#17)
by andgarden on Tue Oct 14, 2008 at 02:51:33 PM EST

: I don't know (none / 0) (#37)
by Manuel on Tue Oct 14, 2008 at 05:11:58 PM EST

A case can be made for lower corporate and investment taxes and higher individual taxes. The problem is that the "free market" types only want the former.

I love how Obama has been (5.00 / 1) (#16)
by coigue on Tue Oct 14, 2008 at 02:50:52 PM EST

smacking Reagan's trickle down economics lately, offering a direct to the middle class benefit instead.

He even uses the term "trickle down" in a very sarcastic very effective way.


That's a one of those Reaganomics' myths (5.00 / 2) (#19)
by imhotep on Tue Oct 14, 2008 at 02:57:39 PM EST

Do corporations ever cut prices?


No (none / 0) (#29)
by TomStewart on Tue Oct 14, 2008 at 04:10:53 PM EST

but they down help shareholders and CEOs, so that's close enough.


Do you think they won't raise them (none / 0) (#35)
by coast on Tue Oct 14, 2008 at 04:36:45 PM EST

if taxes are raised?


: Sure they would. That (5.00 / 1) (#42)
by Radix on Tue Oct 14, 2008 at 05:52:45 PM EST

doesn't mean they would cut them if taxes are lowered. Why would they? They can just pocket the money themselves after all.

The Free Traitors (none / 0) (#43)
by Pepe on Tue Oct 14, 2008 at 06:27:59 PM EST

here will tell you they do.

And for the few hundred you save a year most people lose thousands in income. That is supposed to be a good deal but you will have to have them explain to you why.


That's a silly thing to say (none / 0) (#44)
by Pepe on Tue Oct 14, 2008 at 06:30:58 PM EST

The article and the diary cite recession fears for the drop today. Are you saying that the recession will not transpire because Obama will be elected?


: Nope. Just sayin'. (none / 0) (#48)
by LarryInNYC on Tue Oct 14, 2008 at 08:59:29 PM EST

After going up more then 10%, I would (5.00 / 5) (#2)
by tigercourse on Tue Oct 14, 2008 at 02:27:19 PM EST

have been shocked if it didn't drop the next day. Some people made an absolute killing yesterday, and they took their profits.

This is the usual pattern (5.00 / 7) (#4)
by Steve M on Tue Oct 14, 2008 at 02:31:00 PM EST

just as historic crashes are usually followed by an up day, as people shop for bargains.


: Exactly (5.00 / 1) (#46)
by Socraticsilence on Tue Oct 14, 2008 at 06:47:48 PM EST

I think a lot of people over-reacted to the rise yesterday, the was a similarily massive rise following the 1929 Crash-- here's a hint: it didn't stop a depression.

Actually (5.00 / 1) (#3)
by Steve M on Tue Oct 14, 2008 at 02:30:20 PM EST

the market closes at 4pm, so there is still about a half hour left.

I know in the half-hour.... (none / 0) (#5)
by kdog on Tue Oct 14, 2008 at 02:33:44 PM EST

before they close the casino on a cruise ship as you approach US waters, everybody starts pressing and taking on more risk like a bunch of lunatics....is it the same at the Wall St. casino?


Kinda sorta (5.00 / 1) (#8)
by Steve M on Tue Oct 14, 2008 at 02:41:19 PM EST

The last half-hour or hour of trading often sees some wild swings. Also, this Friday is "options expiration Friday," which means that options trading gets more active and speculative as the deadline approaches. So it will be an interesting week.

The reality, though (which is instinctively understood by the sort of people who don't read the Wall Street Journal far better than those who do) is that the economy is slowing down and it's gonna be rough for a while here, regardless of what the market may do or not do on a given day. Just because the Dow goes up 900 points doesn't mean millions of new jobs got created and bluebirds started singing. The nightly news anchors always report breathlessly on the day's stock market performance as though that's the real story, when the market is really nothing more than an imperfect signifier of what's going on in the lives of real people.


Trying to conjure up an image of (5.00 / 1) (#13)
by oculus on Tue Oct 14, 2008 at 02:47:52 PM EST

the kdog we see here on a cruise ship. Very funny. Kind of like Paul Theroux's description of the people he was on a cruise ship with in the Mediteranean.
