Dow closes below 10,000 thanks to Euro crisis

The Dow Jones Industrial Average closed at 9974.45, the first time since February that it’s been lower than 10,000. As the Wall Street Journal described it, the decline occurred as “investors’ worries about global growth resurfaced, overshadowing strong U.S. data”:

Traders said the market’s late slide was fueled in part by the euro’s decline as investors continue to wait for some sign that policy makers will take steps instead to reign in a potential spread of the euro zone’s debt crisis. The euro tumbled to $1.2193, compared to $1.2334 late Tuesday, in volatile trading dominated by market speculation about the additional fallout from the crisis….

The day’s reversal marked the third day in a row that the market has had a late-day move erasing the performance it had posted through most of the session. Traders say that even during rallies, buyers haven’t necessarily been motivated by strongly held conviction that the global economic rebound will last. As a result, they’ve been prone to take money off the table the first chance they get—an approach that fuels slides like the one Wednesday afternoon.

Republican leaders immediately demanded congressional hearings, investigations and the appointment of a special prosecutor, adding the decline to their growing list of reasons for impeaching President Obama.

OK, just kidding about that last part.

217 comments Add your comment

Hillbilly Deluxe

May 26th, 2010
5:47 pm

I’m one of those people who pays no attention to the DOW. I look at unemployment (not good right now), real wages (they’ve been in decline a couple decades or more), inflation/ deflation (one of these days I expect to see deflation), deficit (not good), and trade imbalance (that’s not good either).
This is a long term problem and it’s going to require a long term fix.

I’ll let somebody else worry about the gamblers on Wall Street. They don’t need me to woorry about them anyway. Unlike me, they’re too big to fail.

Kamchak

May 26th, 2010
5:48 pm

Thirty stocks isn’t a good barometer of the U.S economy. The Dow even represent 40% of the S&P 500.

Too much stew from too few oysters.

Mr. Snarky

May 26th, 2010
5:48 pm

I’m just glad I’ve been shorting the Euro.

Mr. Snarky

May 26th, 2010
5:49 pm

Oh sorry, that was a dream I had.

Bosch

May 26th, 2010
5:51 pm

“real wages (they’ve been in decline a couple decades or more), inflation/ deflation (one of these days I expect to see deflation), deficit (not good)”

I think wages are the main problem.

AmVet

May 26th, 2010
5:52 pm

OH! So that is the fourth impeachable offense! Well at least I know one of them now. (That old stick in the mud, Andy won’t share the other three.)

Has anyone seen Monica lately?

md

May 26th, 2010
5:54 pm

Wonder how many of the EU nations are having back room conversations about dropping the Euro?? Must suck knowing one is unable to manipulate it’s currency to help save itself and must rely on the big boys, especially when the big boys don’t seem to much care.

And it is the ultimate test for European socialism – to save all the little guys (Greece) at their own expense. Should be an interesting experiment.

TaxPayer

May 26th, 2010
5:57 pm

You added that last part for the Borowitz fans, didn’t you.

N-GA

May 26th, 2010
5:58 pm

In the “olden days”, investors looked at a company’s earnings and then tried to guess what the next few quarters/years might be like when deciding whether or not to buy/sell a specific stock. Now the big institutional investors (you know, the ones that really move the market – the retirement/pension funds, mutual funds, etc.) are looking at global events (wars, climate/crops, politics/regime changes) to influence their decision. It’s always a decision based upon risk and reward.

jt

May 26th, 2010
5:58 pm

Remember, when buying survival food,

buy things you DON’T like to eat.

It will last longer.

Kamchak

May 26th, 2010
5:58 pm

RW-(the original)

May 26th, 2010
6:00 pm

So this is the response to real world data rather than CBO data that was being shoveled around here earlier I guess.

TaxPayer

May 26th, 2010
6:01 pm

“Short euros!”

Oh, sorry. A dream I was having.

N-GA

May 26th, 2010
6:04 pm

Speaking with some Europeans, they feel that the gap between rich and poor has widened dramatically (in Europe). The natives are restless and you know what happens then.

I think the same is happening here……

TaxPayer

May 26th, 2010
6:07 pm

At least SO, VZ, etc., pay dividends and they’re not as likely to drop and stay down or go bust with their captive audiences.

josef nix

May 26th, 2010
6:08 pm

Good, new thread…

9974, that’s 26 below 10,000 and a long ways above 7114…

Bosch

May 26th, 2010
6:08 pm

N-GA,

I agree. Now I’m no financial expert, but it seems to me that most people’s wages are not keeping up with inflation, and lower wages means they pay less tax, and the ones that do get tax breaks, so there is less revenue. But what do I know?

@@

May 26th, 2010
6:12 pm

When’s the next election in Greece? The people are so angry there, they’ll vote this bunch out first chance they get. Then?

The roller coaster ride starts all over again.

“Investors Insight” considers the question: “Europe’s Trillion-Dollar Bailout — Can It Work?”

http://www.investorsinsight.com/blogs/forecasts_trends/archive/2010/05/25/europe-s-trillion-dollar-bailout-can-it-work.aspx

Discuss it among yourselves, but it sho ’nuff don’t look to promising.

@@

May 26th, 2010
6:13 pm

oo, “too”.

josef nix

May 26th, 2010
6:16 pm

Bosch
The only indicator I put any trust in is the number of hours one works to pay for food, clothing and shelter…not something you see a lot about…but, then, I’m a simpleton…

jt

May 26th, 2010
6:17 pm

March 10, 2000 5,048.62 +24.22% 9,928.80

After ten years and 3 trillion dollars, 50 point gain.

Impressive.

Kamchak

May 26th, 2010
6:21 pm

N-GA

I saw this the other day and I’m sharing it with all the wine drinkers that I know.

http://motherjones.com/environment/2010/04/climate-desk-wine-climate-change-mark-hertsgaard?page=1

Dave R.

May 26th, 2010
6:26 pm

As the Wall Street Journal described it, the decline occurred as “investors’ worries about global growth resurfaced, overshadowing FALSE INDICATIONS OF strong U.S. data”.

There,Jay. Fixed your typo.

I Report (-: You Whine )-: mmm, mmmm, mmmmm! Just sayin...

May 26th, 2010
6:33 pm

Hey, at least he didn’t shirk their responsibility off on Bush, it’s a beginning.

But check this out, kookman blames Greece, a country the libs soooo want to be like.

Just sayin….

Bosch

May 26th, 2010
6:38 pm

josef,

Yeah, me too, but I have to pay utilities and insurance and I indulge in cable too – and those seem to go up each year as my wages stay the same. :-)

Redneck Convert (R--and proud of it)

May 26th, 2010
6:42 pm

I don’t even know what a Euro is, much less pay attention to the Dow. All I need to know about the economy I get from the golf course. It’s never failed me.

If you get to a tee area and there’s lots of tee stubs and even whole tees laying around, the economy is great. If you get to a tee area and you can’t hardly find even a stub to put your ball on, the economy is lousy. Right now you need to look long and hard for even a stub that’s got enough of a top on it to hold a ball. People are putting the rest in their pocket to use in place of reglar tees that they can’t afford. Matter of fact, the people that run golf courses will do everything but kiss your butt to get you to pay to play.

That’s Redneck’s economy lesson for today. And the situation is getting worse, not better. So keep your money under your mattress or something like that. Don’t pay no attention to the people that use all the fancy terms to try and figure out the stock market. It’s run by a few big guys that rush in and buy when the rest sell off and dump their stock when the rest run the price up. Or maybe it’s run by a couple rich old ladies that stand on a chair when a mouse comes in and sell off when they learn some big shot’s stubbed his toe or something.

No charge for the advise. Have a good night everybody.

jt

May 26th, 2010
6:43 pm

Before the progressive cancer of the federal government, (and the Federal Reserve creature that it vomited forth),

the price of a Coke stayed the same for over FORTY YEARS.

One nickel.

The Feds got involved and now I think the average is 1.10.

josef nix

May 26th, 2010
6:46 pm

Bosch–
But, doncha know, health care is a luxury, right up there with un bon vin blanc and cable…come to think of it, so are lights, gas and water…

But, there’s at least one happy latina server with a little extra cash for some of those luxuries like cheese for the beans tonight…went out to lunch and when I got back to work, realized that, leaving the tip, the $5 bill part of it was, on checking the wallet, a $20…no wonder she wished me a very good day! Oh, well…at least that financial error went to someone who could use it without it having to trickle down…! :-)

Saul Good

May 26th, 2010
6:49 pm

Look at the Dow on Bush’s FIRST day in office VS. his last day in office. What’s happening to Greece is EXACTLY what baby Bush did his whole life… use Daddy’s credit card and never look at the statements and just hope daddy was making the payments. Sad that people elected him after it was clear that he NEVER had a track record of crushing one business after another.

Retealicans can bring up the DOW when it goes below the day Obama took office… because Bush ended with the DOW lower then when he took over… just like he reigned over losing more jobs compared to creating any… ahhh….those Bush tax cuts… you know the very ones that lost the US 8 million jobs though it was promised that companies would HIRE people because of the money they were saving. Trickle down, trickle down… we all know what history has shown us with THAT theory.

josef nix

May 26th, 2010
6:49 pm

Redneck
Euro is what you do with Eurboat…dumb a33…

Saul Good

May 26th, 2010
6:50 pm

josef…thanks for helping to “stimulate” our economy with your extremely gracious tip! :)

josef nix

May 26th, 2010
6:52 pm

Saul

The 300,000 teachers are being layed off on Obama’s watch…

Curious Observer

May 26th, 2010
6:53 pm

went out to lunch and when I got back to work, realized that, leaving the tip, the $5 bill part of it was, on checking the wallet, a $20…no wonder she wished me a very good day!

Same thing happened to me at one of those old-line Myrtle Beach golf courses that serve soup at the turn and where the staff members dress in kilts. At the end of a round, an attendant took my bag off the cart and cleaned my clubs and golf shoes. I tipped him with what I thought was a fiver, and he seemed eternally grateful–unusually so. Once I got back to the place where I was staying, I discovered that the five was still in my wallet but a 20 was missing.

Hillbilly Deluxe

May 26th, 2010
6:54 pm

Josef @ 6:16

Any sites have figures on that in the last say 20-30 years? I think I know what they’d show but I’d be real curious to know how right or wrong I am.

In my opinion, within say 50-100 years, the European Union will break apart. They fon’t have enough shared interest or shared cultures to hang together. Some countries will decide that they’re carrying more than their share of the load for the rest.

Countryland Golf Course, Green Fees

Monday-Friday Sat., Sun., & Holidays

Regular Rate $29 $39
Seniors Rate (over 55) $24 $34
Juniors Rate (under 15) $15 $25

Convert must be a little better situated than he lets on.

josef nix

May 26th, 2010
6:55 pm

Saul

Well, I did speak well for the gringos today. The lunch time conversation had been in Spanish and I was the only male in the lot and the only native English speaker and then I left that “gracious tip”–kinda makes me wonder what she thought I was!

N-GA

May 26th, 2010
6:56 pm

Bosch – Since the GOP wouldn’t allow minimum wage to increase for 20+ years, real wages at the low end suffered badly.

Kamchak – I’m not too worried about climate change and crops relative to temperature. I’m more concerned about rainfall, and man’s inability to manage our watersheds. That will get us for sure. On the other hand, grapes actually improve in quality when they are stressed (lack of water, heat, etc.). Small, tight berry clusters usually produce more concentrated juice. Big, plump grape clusters are great for fruit, but not so much for juice.

md

May 26th, 2010
6:57 pm

“The 300,000 teachers are being layed off on Obama’s watch…”

Well yea, but iffin we didn’t have 43 presidents before Barry, they wouldn’t be.

Redneck Convert (R--and proud of it)

May 26th, 2010
6:59 pm

Convert must be a little better situated than he lets on.

But you don’t know Sam, the greenskeeper, City Boy.

md

May 26th, 2010
7:01 pm

“In my opinion, within say 50-100 years, the European Union will break apart.”

That is awful generous in my opinion. I’d give it 10-15. Longer if they ditch the euro.

Hillbilly Deluxe

May 26th, 2010
7:01 pm

But you don’t know Sam, the greenskeeper, City Boy.

No, but I knew the people who owned it before it was a golf course.

md

May 26th, 2010
7:02 pm

“Since the GOP wouldn’t allow minimum wage to increase for 20+ years, real wages at the low end suffered badly.”

It’s all relative – had we had higher minimum wage, we would now also have higher unemployment.

josef nix

May 26th, 2010
7:03 pm

Hillbilly
The only time I’ve ever seen a rundown of that was back in the mid 1980s when the pink collar workers had Unmentionable’s workplace were not given a raise while the “professionals” got a hefty one. They came and asked him what to do. The management had claimed the dirt workers were being paid “competively.” So, he figured their take home wage, ran up a list of necessities and the current prices, stacked that up against the same in the then Soviet Union, Japan, UK, Poland…and I can’t remember the other countries…these, mind you were JUST the necessities, food clothing and shelter…the American workers would have been better off in all of the countries he chose with the exceptions of Algeria, Uganda, and El Salvador! They didn’t get the raise in pay, but he did get a raised eyebrow upstairs…but, workers of the world unite, the pink collar workers never ratted on him and the management was never able to prove he was a trouble-making agitator…

RW-(the original)

May 26th, 2010
7:06 pm

md,

About that 43 Presidents before Obama business. Even Obama fell into the trap of saying 43 men had come before him to take the oath, but it isn’t true. There were only 42 different Presidents before Obama. Cleveland counts as #22 and # 24 because his terms weren’t consecutive.

josef nix

May 26th, 2010
7:06 pm

Hillbilly

Yeah, but just what IS that relationship between Redneck and Sam…inquiring minds want to know… :-)

Hooked on Love

May 26th, 2010
7:07 pm

Well, John, at least that’s what he said his name was, once offered me a $5 and I looked at him like, “Are you crazy,” and then he finally pulled out a $20. How am I supposed to fund an IRA and buy those dogs from the DOW on that kind of money.

josef nix

May 26th, 2010
7:07 pm

RW

Which of the 57 states was Cleveland from?

Hillbilly Deluxe

May 26th, 2010
7:09 pm

Josef

That reminds me of something I saw a few years back. I don’t remember where I saw it but it was written by a person who was anti-Federal Reserve, as I recall. It made long term comparisons about prices of common things over about a hundred year period. According to what it showed (wish I remembered more about it) prices remained relatively stable compared to other prices. Example: The ratio between a gallon of milk, a pound of butter, and a cow always stayed close to the same. In other words, if 300 gallons of milk was the same as 1 cow, that remained stable. Ever seen anything like that in your reading?

josef nix

May 26th, 2010
7:11 pm

Hooked–

Speaking of, has anybody analyzed the wages of sin in all this…now THERE’S an indicator I’d put some trust in!

Redneck Convert (R--and proud of it)

May 26th, 2010
7:12 pm

Yeah, but just what IS that relationship between Redneck and Sam…inquiring minds want to know…

Well, Sam and me go way back. He’s a good bowler and even joins the guys at Mans Town at Jekyll Island in January to play golf. That’s kind of a golf group. He’s a good old boy, but you don’t want to cross him. Him and me are real tight, but not the way josef thinks of real tight. I got to admit he’s kind of fond of Jim Earl, but that don’t mean nothing. At least I don’t think it does.

Hillbilly Deluxe

May 26th, 2010
7:13 pm

That is awful generous in my opinion. I’d give it 10-15. Longer if they ditch the euro.

I wouldn’t bet against you on that one, md.

Which of the 57 states was Cleveland from?

Georgia, Tennessee, or Ohio. :lol:

RW-(the original)

May 26th, 2010
7:14 pm

josef,

The 57 states is wrong too. Obama said he had been to 57 with 1 to go because his staff wouldn’t let him go to Alaska or Hawaii. That’s 60 right there, but he was also supposed to be boycotting Michigan and Florida at the time so we may well have 62.

Hooked on Love

May 26th, 2010
7:16 pm

Speaking of, has anybody analyzed the wages of sin in all this…now THERE’S an indicator I’d put some trust in

All I knows is that those hookers on Wall Street is making out like bandits. I just can’t imgine what kind of service they is giving their clients to make them want to give up their life’s earnings for it though.

josef nix

May 26th, 2010
7:16 pm

Hillbilly
I’ve not seen a lot on that one, but I have done some analyses of dollar values of property owned by Indian. French, Jewish and gens de couleur women in the Southeast in the colonial and early nation periods adjusted to current values and stacked that up against wealth controlled by women today…interesting findings…

Hillbilly Deluxe

May 26th, 2010
7:20 pm

That’s 60 right there, but he was also supposed to be boycotting Michigan and Florida at the time so we may well have 62.

Do y’all know about the independent state of Dade?

Josef @ 7:16

Women controlled more property then than now?

josef nix

May 26th, 2010
7:22 pm

Redneck

Do Sam and Jim Earl suffer from the GWIDLA syndrome? How they feel about DADT?

RW

Kinda hard to keep count, ain’t it?

md

May 26th, 2010
7:22 pm

“About that 43 Presidents before Obama business. Even Obama fell into the trap of saying 43 men had come before him to take the oath, but it isn’t true. There were only 42 different Presidents before Obama. Cleveland counts as #22 and # 24 because his terms weren’t consecutive.”

You have me thinking about that one – if he counts as “president” #22 and as “president” #24, there had to be 43 “presidents”.

md

May 26th, 2010
7:24 pm

That would be 42 “men” as 43 “presidents”.

Normal

May 26th, 2010
7:24 pm

Redneck,
About right now the Euro is worth about the same as a Confederate Dollae…Understand now?

Normal

May 26th, 2010
7:25 pm

Dollar, dammit, dollar..

Normal

May 26th, 2010
7:26 pm

I don’t get the stock market. If I want to gamble, I go to a casino. I get better odds there.

electrician

May 26th, 2010
7:39 pm

josef..youve got mail..i havent been around this or any other blog for a while,I gave it up for lent and since then I havent really had any interest in it.I still drop in and read a little sometimes,but I dont post.you are one of the more reasonable people on here and along with a few others contribute things other than the usual name calling.I hope your soldier is doing well and that he is back soon if not already.mine has returned and is in the wtu. due to a severe back injury that required major surgery to correct,so hjs days in the army are soon to end.anyway,all good things for you and yours.

Kamchak

May 26th, 2010
7:39 pm

RIP Art Linkletter.

Hillbilly Deluxe

May 26th, 2010
7:40 pm

Normal

Actually an authentic Confederate dollar is worth more than a Federal Reserve Note. ;-)

josef nix

May 26th, 2010
7:44 pm

Hillbilly

Southern women did, especially the Indian ones. Indian women, French women and Jewish women had always had the right to control and dispose of property separate of men and in 1834 Mississippi became the first jurisdiction under British Law to repeal the law of couverture which said that a woman (and thus any wealth she might accrue) was the property of a male. After the state supreme court ruled in the case of Fisher v Allen that Chickasaw law superseded British law and incorporated it into the state’s 1839 constitution, several Southern states followed suit…

http://mshistory.k12.ms.us/index.php?id=6

Betsy Love, the heroine of this, passed to her children in 1829 properties which would be worth $25,000,000 in today’s currency and on her death left a similar estate…Abigail Minis of Savannah (and mother of the first European child born in Georgia, was probably the wealthiest woman in America at the time (I would have to look up the reference to her, I don’t have it at hand), the Baroness Pontalba’s personal pocketbook put the equivalent of $300,000,000 into her developments in New Orleans, the Erlanger loan was largely the work of Sen. Slidell’s wife who was at the time of the outbreak of the war the wealthiest woman in North America…in Texas, which operated under Spanish law which also permitted women to own and dispose of properties in their own rights, the list of women of fantastic wealth is a long one…

Did women control more property then than now…in dollar value relative to dollar value now in relation to males, I don’t want to go out on a limb here and now, but it appears that they did.

This is not the time to go into it, but Mom’s family’s “comeback” from the destruction of the Civil War had to do with Great Grandma’s playing the women’s property laws to “money launder” when her husband’s properties were seized during the occupation and he not allowed, not having recouped his US citizenship, to own and dispose of properties in his own name. She was not alone in that.

josef nix

May 26th, 2010
7:51 pm

electrician

It didn’t come through…good to hear from ya, though…our boy is stateside now..thank G-d…

K’chak

A great American, he…RIP

Normal. Hillbilly

The $2.00 Confederate Bill is my favorite… :-)

Hillbilly Deluxe

May 26th, 2010
7:55 pm

Sorry to hear about Art Linkletter. Used to watch his show some as a pre-schooler and I had no idea he was born in Canada, either.

Normal

May 26th, 2010
7:58 pm

Hillbilly Deluxe

May 26th, 2010
7:55 pm
Sorry to hear about Art Linkletter

Yeah, me too. I loved his “Kids say the darnedest things” segment.

josef nix

May 26th, 2010
8:05 pm

K’chak

And, yes, Canada IS in America! :-)

md

May 26th, 2010
8:07 pm

“And, yes, Canada IS in America!”

And according to the Brits, we are all “yanks”. How does it feel to be a yank Jo.

Saul Good

May 26th, 2010
8:08 pm

josef…you mean the 300,000 teachers here in GA? I wonder who it is that’s run GA for 8 years… I guess Obama was running this place…controlling the banks and giving out unsecured and undocumented loans to developers and builders…and it was he too who was plowing over every sq. inch he could without regards to a limited supply of water…and know what else he did? He gave HUGE tax breaks to all of his business/developer buddies at the same time. Obama’s kind like the guy in that Woody Allen movie… he was EVERYWHERE…so lets blame him for EVERYTHING. :)

Kamchak

May 26th, 2010
8:19 pm

K’chak

And, yes, Canada IS in America!

Yep—so is Brasil. “America” is a continental distinction.

Mick

May 26th, 2010
8:23 pm

This might be a good time to pick up some decent stocks. If they can ever get that damn thing corked, with gas prices actually falling and summer ahead, we will be finding out about the greatness of this country by the way we respond to this tragedy in the gulf. The people should demand that the gov’t police and enforce the cleanup and BP picks up the tab plus tip. I think most of us on the gulf are numb and in denial but it’s real and its out there – poisoned ocean.

josef nix

May 26th, 2010
8:26 pm

Saul–
That’s 300,000 nationwide…the unemployment folks have been told to prepare to process up to 15,000 claims for layed off Georgia school workers…

And there is NO, I repeat NO, excuse for laying off teachers…education should be a top priority and Obama, Bush, it doesn’t make a sh*t’s worth of difference…this is taking place on Obama’s watch…where’s our bail out or are our children, mine and your social security checks, just not part of that too big to fail mentality…

md–
Abroad it doesn’t really bother me. Funny little story…I was in Panama once and there was some anti-American rioting going on…I was out to dinner with some Latino friends when a woman who was a non practioner of the Good Neighbor Policy began depracting the “gringos” and casting eyes toward me and our table. One of my friends wanted to “tell her off” but I told him not to go stirring up trouble. Next she started on “norteamericanos” and once again my friend was stilled. After that she went off on “imperialistas” and again I had to stop my friend. Finally she started on “yanquis.” My friend wouldn’t be stopped, he went over to her table and said, “Madam, a gringo he is, a norteamericano, no doubt and he may even be an imperialista, but unless you want to refight the American Civil War I suggest you refrain from calling him a yanqui.” :-)

AmVet

May 26th, 2010
8:28 pm

“…but it seems to me that most people’s wages are not keeping up with inflation…”

You decipher it. But I think I know enough to say it ain’t good…

http://www.milkh.com/news.release/realer.t01.htm#re_table1.f.1

And more evidence that for many(most?) Americans they are losing ground…

http://www.infoplease.com/ipa/A0774473.html

josef nix

May 26th, 2010
8:34 pm

Mick

Buy low, sell high. A lot of our friends thought Unmentionable was insane when he went on a buying spree back when it was down in the 7000s…well…not a bad return so far…

godless heathen

May 26th, 2010
8:34 pm

Time for NJ to come on line and lecture us in a 10,000 word essay about how the USA should emulate economic policies of Europe.

Kamchak

May 26th, 2010
8:35 pm

Mick

BP might have some cost that wont be realized for some time.


Fishermen Hired by BP for Oil Clean Up Weren’t Provided Protective Equipment, Have Now Fallen Ill

With last month’s massive oil spill at the Deepwater Horizon rig in the Gulf of Mexico threatening the livelihood of the area’s fishermen, BP said it would “hire as many local residents as possible to clean the beaches and distribute booms through the surrounding marshes and waterways.” But the effort has hit a few bumps with fishermen complaining that “too few people” were being hired and their cleanup contracts contained problems. Now, the Los Angeles Times reports that some fishermen have “become ill after working long hours near waters fouled with oil and dispersant.” At least one worker says he wasn’t given protective equipment by BP:

Like other cleanup workers, Jackson had attended a training class where he was told not to pick up oil-related waste. But he said he wasn’t provided with protective equipment and wore leather boots and regular clothes on his boat.

josef nix

May 26th, 2010
8:36 pm

Mick
What I keep hearing from the ground (not making the news that much) the natives down in Louisiana are more than a little restless…

AmVet

May 26th, 2010
8:38 pm

This is really just an exercise to quantify how the American wroking class has gotten horrifically short changed for decades in corporate America’s rush to an oligarchy and elitist ruling class:

http://www.mybudget360.com/income-budget-game-over-for-the-american-middle-class-inflation-adjusted-wages-up-20-percent-in-last-20-years-while-housing-costs-are-up-56-percent-and-healthcare-costs-are-up-155-percent

Saul Good

May 26th, 2010
8:39 pm

I agree 100% josef…. the funding of education is the MOST important thing we can invest in for our nation… Allah knows how far we are falling behind the rest of the world… you’ll never get an argument out of me when it comes to providing a GOOD solid education in our nation… well except for in Texas, but they don’t live on the same planet as us anyway………….

Bruno

May 26th, 2010
8:39 pm

“The $2.00 Confederate Bill is my favorite…”

josef–Recently you stated that those of a Scientific mind reject History as a basis for present-day judgment due to an affinity for clear, concise answers, of which History provides none. I don’t think it’s as simple as that, however. IMO, it relates more closely to Theseus’s Paradox (aka The Ship of Theseus).

http://faculty.washington.edu/smcohen/320/theseus.html

Hillbilly Deluxe

May 26th, 2010
8:39 pm

AmVet

Your charts showed about what I was expecting. It was interesting that the highest minimum wage in 1996 dollars was in 1968. It is still my contention that the 1960’s were the time in my life when people actually made the most money, relative to other things. Although many see it polar opposite to me, I still think high wages were the best thing that ever happened to this country. People had money to buy things, which gave people here jobs. It was an upward spiral that lots of people could ride.

It’s true that a rising tide lifts all boats; it’s just as true that a falling tide lowers all boats.

Bruno

May 26th, 2010
8:41 pm

“Buy low, sell high.”

NOW you tell me. Thanks a lot, josef. :-(

godless heathen

May 26th, 2010
8:41 pm

I can imagine that the slip and fall lawyers are descending on the Gulf Coast like vultures on a dead cow.

josef nix

May 26th, 2010
8:43 pm

K’chak

That’s why Unmentionable and so many other Indians detest the term “Native American…” saying that “anybody born in the Western Hemisphere is a ‘native’ American…”

He also gets a chuckle from those using the term and taking a swipe at Columbus and his mistaken identification.. “oh, so instead we’re supposed to go for Americo Vespucci…? Duh.”

Kamchak

May 26th, 2010
8:44 pm

It’s true that a rising tide lifts all boats; it’s just as true that a falling tide lowers all boats.

I’ve always detested that metaphor, and it wasn’t until recently that someone articulated what I couldn’t. A woman stated “That presumes that everyone has a boat.”

theyeshaveit

May 26th, 2010
8:46 pm

Financial Advice for Josef and Curious: My wallet has a divider where the currency is kept. I always always keep twenties (or higher denominations) on the far side of the divider and anything else on the near side. So, I suppose, my tips are less generous than yours, but my cable bill is wrapped around my my ankles and pulling me down into the abyss.

Bruno

May 26th, 2010
8:48 pm

“This is really just an exercise to quantify how the American wroking class has gotten horrifically short changed for decades in corporate America’s rush to an oligarchy and elitist ruling class”

AmVet–Cheer up, will you?

http://www.youtube.com/watch?v=8TqLmDhOdEc

An oldie but goodie ^^^^^

Mick

May 26th, 2010
8:49 pm

Hillbilly Deluxe

Yes, I was there too in the sixties where everybody was working and making decent wages. You could get get overtime and make a bundle.

josef

No question, this nation needs to fund education 110%. I have never seen so much hostility projected toward teachers and public education as I have the past few years. A profession where most people would be toast by lunch.

godless heathen

May 26th, 2010
8:49 pm

Only the dead don’t have a boat.

Soothsayer

May 26th, 2010
8:49 pm

1. The stock market is a stupendous bubble, completely out of touch with the first 35 years depicted on the chart.

2. The bubble’s ramp-up began in 1995, when the tech bubble expanded after a flat 1994. The market more than tripled in a mere half-decade. That’s a bubble.

3. The bubble burst in 2000 but did not return to its starting place as is typical with classic bubbles–that is, it didn’t retrace back to 400, but clung to 800–still a bubblicious height when compared to the previous 40 years.

Why did this occur? The Federal Reserve went all-in to inflate a new credit/asset bubble, this time in housing. Americans extracted trillions of dollars in “free money” from their bubbling houses and spent it like drunken sailors, saving nothing.

4. This unprecedented (essentially) zero interest rate policy, extreme liquidity and the orgy of fraud, leverage and embezzlement unleashed by lax/non-existent oversight created bubbles in real estate and stocks (profits exploded from all that “free money” being squandered).

5. The wheels fell off the credit/fraud/housing bubble in 2007.

6. The market hit a lower low, far exceeding the last post-bubble low. Technically, that projects to the next low being much lower than 2009’s bottom of 667.

7. The bubble will not complete until it retraces to its starting point around SPX 400. With the SPX at 1,090 as I type, that would imply a 65% drop from today’s levels.

8. The 2009-2010 rally failed right at the 200-day moving average–a key failure suggesting weakness ahead.

Hillbilly Deluxe

May 26th, 2010
8:52 pm

AmVet

For whatever my opinion is worth, I think that health care costs are slowly strangling us. Think boa constrictor.

Recently you stated that those of a Scientific mind reject History as a basis for present-day judgment due to an affinity for clear, concise answers, of which History provides none.

I don’t have a scientific mind; I have a mechanical mind, yet I am fascinated by history. Maybe it’s like when I was a kid and I watched them catch chickens. Each catcher would have 7 or 8 chickens in each hand. He’d then put both handfulls in one coop and it’d be loaded on the truck. (That’s how they caught 10,000 or so chickens in one night.) After the chickens were in the coop and got themselves sorted out, there’d always be one that stuck it’s head out through the slats. Guess that’s me.

Theseus’s Paradox reminds me of the old man who had George Washington’s axe. As he said, “Of course, it’s had 3 new heads and 5 new handles since George had it.”

AmVet

May 26th, 2010
8:52 pm

Hillbilly, great points.

We are, I believe, the first generation of Americans to make “less” than our parents.

Hey B!

I’m not down. I’m just exposing the travesty that has happened to me and my fellow middle class peeps.

Hope you’re well. And since you brought it up!

http://www.youtube.com/watch?v=X7dHoEmUtIs

Soothsayer

May 26th, 2010
8:52 pm

On a lighter note: James Carville is living proof that aliens have mated with Earthlings.

josef nix

May 26th, 2010
8:53 pm

Bruno

Ah, my friend! You would bring up Heraclitus! And while I will grant the argument has validity, my contention still is that it’s two different ships to begin with…. :-)

So, why IS the Confderate $2.00 bill MY favorite? Betcha Hillbilly knows without having to look it up! (Betcha the Bruin does, too, but he won’t admit it for reasons stated earlier!) :-)

theyeshaveit

May 26th, 2010
8:54 pm

Saul, regarding the need to step up to the plate on education in this country, I too agree. I have an anecdotal story to tell about the differences in our education system and that in Japan (my wife is from there). When she first came back from Japan with me years ago, she wanted to attend an American community college. She was told to take an entrance test focusing on math and English. The English was not so challenging, but the math sample that she received before the test date perplexed her. She had to track down a Japanese middle school practice book in math to prep for the American college test. She did just fine, but she had to dig deep into her middle school years to recall the math that she was addressing on the test.

Kamchak

May 26th, 2010
8:56 pm

Only the dead don’t have a boat.

With an official unemployment rate at about 10.9%, I would say that there are many in this nation that are boat-less.

godless heathen

May 26th, 2010
8:58 pm

The saying means that when the economy improves, all benefit. Do you disagree, Kam?

theyeshaveit

May 26th, 2010
8:58 pm

Soothsayer, in that case, James Carville is my Favorite Martian.

josef nix

May 26th, 2010
9:02 pm

eyes
Will keep your advice in mind tomorrow…going out for lunch again…we actually can do that when the kiddies have gone home…!

Bruno and AmVet
Can always count on y’all for a good song (AmVet in case you missed it downstairs that “Two out of Three Ain’t Bad” had me rolling…a little gallows humor never hurt, eh?

Soothsayer–
That man scares me! Not his politics or commentaries, but HIM…I mean, I’m not one to judge on physical appearance, but…