Dow Drops More Than 500 Points

[SmootSmack]

Worst day since 2008

Market Report - Aug. 4, 2011 - CNNMoney

[firstdown]

I'm sure this is Bush's fault some how.

[JoeRedskin]

Yeah. Not good. There is just not a lot of job creation going on, stimulus has run its course and, on top of that, the "quantitative easing" and stimulus has flooded the economy with money - markets can see that. Lots of people are predicting serious inflation over by the end of 2012 (8 - 12%).

[Ruhskins]

Originally Posted by JoeRedskin

Yeah. Not good. There is just not a lot of job creation going on, stimulus has run its course and, on top of that, the "quantitative easing" and stimulus has flooded the economy with money - markets can see that. Lots of people are predicting serious inflation over by the end of 2012 (8 - 12%).

But I thought we were giving tax breaks for rich..I mean "job creators" so they can create jobs?

[mlmpetert]

Yeah i think markets were really looking for a debt deal with around 4 trillion in cuts, not a 1.2 trillion deal without any revenue increases or entitlement reform. S&P is prob gonna downgrade us debt within the next 6 months, moodys might too. That combined with recent poor earnings and economic data makes for bad markets, and in this case real bad. I think qe3 is probably more of the boost to stock markets, a weak dollar and easy money is usually a positive to equities.

[hooskins]

This is going to need to get moved to the politics forum real soon lol.

But yes, it's all Bush's fault. Funny Onion article today:

Obama Turns 50 Despite Republican Opposition | The Onion - America's Finest News Source

[Dirtbag59]

So what does this mean? Is this a double dip recession?

[SmootSmack]

Originally Posted by hooskins

This is going to need to get moved to the politics forum real soon lol.

But yes, it's all Bush's fault. Funny Onion article today:

Obama Turns 50 Despite Republican Opposition | The Onion - America's Finest News Source

Yeah I suppose I should put it there

[mlmpetert]

Originally Posted by Dirtbag59

So what does this mean? Is this a double dip recession?

Ive heard a lot of things from completely partisan resources this week and largely the consencious is the likelihood of another recession in the near term is unlikely. Markets may be considered leading indicators but they are ususaly overly speculative.

Although i did hear yesterday that 70% or so of Americans still think were in a recession. So to most it doesnt really matter, theyre still hurting if we are technically in one or not.

[Dirtbag59]

Originally Posted by mlmpetert

Ive heard a lot of things from completely partisan resources this week and largely the consencious is the likelihood of another recession in the near term is unlikely. Markets may be considered leading indicators but they are ususaly overly speculative.

Although i did hear yesterday that 70% or so of Americans still think were in a recession. So to most it doesnt really matter, theyre still hurting if we are technically in one or not.

Either way something needs to be done to encourage firms to start hiring again. No one is going to go anywhere if companies keep hoarding cash. For better or worse it looks like Obama is going to loose reelection.

[mlmpetert]

Originally Posted by Ruhskins

But I thought we were giving tax breaks for rich..I mean "job creators" so they can create jobs?

Would raising taxes on the evil rich make things better right now?

Either way something needs to be done to encourage firms to start hiring again. No one is going to go anywhere if companies keep hoarding cash. For better or worse it looks like Obama is going to loose reelection.

Yeah Obama is on the outside looking in unless the economy is in much better shape then now come 2012

Also i heard this yesterday. What if we made the corporate tax rate zero but offset it by making the tax rates on capital gains and qualified dividens equal to individual's income tax rate and maybe even raise the top tax rate a little on those disgusting rich people. US corporate taxes are the highest in the world (prob the most complicated too) and are equal to only 15% of the total the IRS collects. Im sure that would attract new businesses and maybe spur production a little bit too.

[firstdown]

Obama said we need to focus on creating jobs. Well what the hell was that 800 billion spent on? I have no problem with hitting the rich with higher taxes as long as we make other cuts to go along with them.

[drew54]

What I don't understand is the unwillingness to cut tax loopholes like the oil subsidies and private jet tax credit.

It always seems the message is the free market knows best, but don't mess with our sacred cows that are propped up.

[Dirtbag59]

Originally Posted by drew54

What I don't understand is the unwillingness to cut tax loopholes like the oil subsidies and private jet tax credit.

It always seems the message is the free market knows best, but don't mess with our sacred cows that are propped up.

I only know so much about this, but a lot of people want to hit a lot the corporations with heavy taxes which from a basic economic standpoint makes little sense. First it raises prices in an economy where many are either unemployed or underemployed. Then it encourages these companies that could be providing jobs to pack up and leave all together for more tax friendly countries.

There needs to be a more amicable solution then just going hard at the corporations with taxes. Only thing I can think of is tax breaks for companies that hired unemployed workers. Make it worth their while.

[saden1]

This great...I got extra money laying around amd now I have a place to put them. Everything is on sale....buy buy buy!