Episode-109- The State of the Economy in December 2008 — 7 Comments

  1. I just heard that it’s unconstitutional to bail out the Auto industries…and it was also the wall street idiots. This opens up the door to weaken our constitution don’t it. I know that when the covenants of our neighborhood are broken and go unchallenged it wipes away the covenants. Does this not happen also to our Constitution? I’d also like your opinion why this has not gone unchallenged?

    By the’s show was good…I agree that there is something going on with the fuel prices… I’m not sure it’s not our own government trying to control Russia in a round about way.

  2. Sorry A type O.. I meant why this has gone un challenged. No one seems to care except all those bankrupt states that now can line up and get bailed out without as big a argument.

  3. Is it too late to get in on the DOW bet today? Just kidding man, I don’t know any better than the next guy what is going on these days.

    Here’s a total I found on the cost so far (keep in mind WWII cost an inflation adjusted $200 billion)

    Federal Reserve:
    (TAF) Term Auction Facility – 900 billion
    Discount Window Lending
    Commercial Banks – 108 billion
    Investment Banks – 102 billion
    Loans to buy ABCP – 108 billion
    AIG – 122 billion
    Bear Stearns – 29.5 billion
    Term Securities Lending Facility – 225 billion
    Swap Lines – 519 billion
    Money Market Investor Funding Facility – 540 billion

    Automakers – 25 billion
    (FHA) Federal Housing Administration – 300 billion
    Fannie Mae/Freddie Mac – 150 billion

    (TARP) Treasury Asset Relief Program: – 700 billion

    Total – $3828.5 billion

  4. Jack, I have to give you some shit about timing the market. DJIA is up 60 points today, not down 200 to 600 like you said. I’m back to my original belief that you can not time the market. You had me 20% convinced I was wrong until you dug your heels in and proved you were wrong today.

    I’d say I loved you show today, but it gave me heartburn and caused me to be a loud, overbearing, alarmist to everyone I talked to after I listened to it, which was only 2 people really, but those 2 people now have heartburn too. Any ideas for action concerning the federal reserve $3 trillion debt issue? I’m at a loss!

    Thanks for all you do,

  5. Brain,

    Do you actually listen to what I say with each thought being its own thought?

    I said so many times till I am blue in the face that when I say you must time the market I DO NOT mean daily or day trading and a 200 point move on the DOW is not the type of thing you try to time anyway it is way to small. I am talking about seeing a recession coming and many indicators and moving your investments into cash (at least part of them) before it hits.

    My prediction today was not meant to be an investment tip. Just a guess and honestly it was not a bad guess.

    Stein, can you lay the action with me now? Um no! You should have tried at least an hour before the close (grin).

    So what happened, why did I get it wrong? Because the Bush Administration threw a curve ball. After the senate said no way, Bush is apparently going to use the other Bail Out money to do the deal anyway. Which I absolutely said was the game today, go listen to the show again.

    Now once again, daily predictions are for fun, timing the market is the EXCEPTION not the rule, it is just getting conservative when indicators are bad.

    I really hope ya’ll get what I am saying before I end up getting bored saying it. This isn’t hard in the past 10 years there were two time to bail and two times to get back in. They were really obvious too.

  6. It must be nice to have such nice disposable cash to worry about timing the market. I just know that with our cash flow here the market closes everyday at 11pm so I can time the correct time 1130pm to see what they have disposed of before they go home that I can add to my preppers.
    Happy Saturday all

  7. Jack, I think I do get what you are saying, which is something along the lines of “when all the signs are saying the economy is about to tank, be ready for a big downturn in the stock market”. You were getting very specific “today the market is going to do this”, which is my definition of “timing the market”, and everything I’ve learned says it is impossible to do over the long term, try it enough times and you will be screwed. I think we are on the verge of beating the dead horse, huh?