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Stock Market in Longest Funk Since 1970s

online.wsj.com — The stock market is trading right where it was nine years ago. The current market turmoil may result in a lost decade like the 1930s and the 1970s. Some believe the troubles are severe enough that the period of weakness isn't over.

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  • cmuwriter, on 03/27/2008, -3/+34Get it? 70s....funk?
    • Bologner, on 03/27/2008, -2/+1I wish we had little bombs planted inside ourselves at birth, that when you listened to Disco by choice, you exploded.
      • Yez70, on 03/27/2008, -0/+6You could say the same thing about the current state of music...
      • dracostimpy, on 03/27/2008, -1/+2LEAVE ABBA ALONE!
    • keltin, on 03/27/2008, -0/+3I don't think pepole quite understand what is happening in the United States.
      1. The Federal Reserve Bank has gone crazy. They've bailed out non-bank, financial institutions, for billions of dollars. The only difference in getting into the Great Depression was the government was bailing out banks.
      2. The Federal Government is creating policies that are causing greater and greater inflation. This is BOTH the President's Administration and Congress. They're both culpable. Over eight TRILLION dollars in debt?
      We are so Screwed, and most of you don't even know what's coming.
    • caferrell, on 03/29/2008, -0/+1The stock market is in a much worse funk than the WSJ wants you to know.
      It has gained nothing in ten years as measured in stock values traded in dollars.
      Do that same math using the Euro to measure stock market performance. It has LOST 35% of its value. The only thing that is keeping our stock market from collapsing is our low dollar.
  • JoshuaLowe, on 03/27/2008, -3/+37Well, I'll sleep better knowing that our government has plenty of cash to give to investment banks when their bad decisions catch up with them. After all, it's just taxpayer money. Those Bear Sterns guys have yachts to worry about.
    • heyphyuckyou, on 03/27/2008, -3/+2And those Bear Sterns shareholders have a lot more to worry about. 1/3 of the stock was owned by Bear Sterns employees in the form of retirement savings. Not to mention what would have happened to the repurchase market had Bear Sterns been allowed to collapse.
      • JoshuaLowe, on 03/27/2008, -1/+3And unlike Enron employees, the employees who invested so heavily in Bear had insight into what their company was exposing itself to. Failure to do market research is no more a valid excuse for a taxpayer sponsored adventure into Wall Street than failure to do proper intelligence gathering is an excuse for a taxpayer sponsored adventure into Iraq.

        But that's not even what this is about. What this is about is: Why did JP Morgan raise their offer? The answer is: Because speculators levered themselves into Bear the initial offer came out, because they _knew_ it was going to be raised and they knew the stock price would leap up. The government just funded a windfall. Not to mention that when JP Morgan mysteriously raised its offer (Hey, it's not their money, so why not raise it? The tab's on those sucker taxpayers!) and Bear's value shot up, they dramatically increased the value of their own acquisition.
        • heyphyuckyou, on 03/27/2008, -0/+0Actually, BSC stock rose in price because the FMV of the company was worth over $10 with what remaining cash they had on hand along with their other securities. Holders of the stock knew that $2 was way too good of a deal and that the company was worth more.
      • pak314, on 03/27/2008, -0/+2Imagine that employees in the financial industry don't know much about diversification.
      • caferrell, on 03/29/2008, -0/+1@heyphuckyou, "Not to mention what would have happened to the repurchase market had Bear Sterns been allowed to collapse."
        that is part of the same tired reasoning that has been used to justify every bailout of rich bankers and investors over the last 120 years. The trouble is that each bailout makes the next bailout more likely. We have a financial market that has been run like a Ponzi scheme. We have brokers and bankers with the morality of Carribean pirates.

        Enough already. We should not be bailing them out we should be putting them in jail.
        • heyphyuckyou, on 04/01/2008, -0/+0Wow, you really sound like you have a handle on how business works. Let me guess, you are a freshman at a local community college who just took a foundations of business course? Jackass.
    • bernandoo, on 03/27/2008, -4/+4You have no idea what you're talking about. "Those Bear Stearns Guys" lost their socks by selling to JP Morgan. Some investors had stakes worth over a billion dollars which are now worth less than 50 million. I'd take 50 million any day, but 1.2B is a whole lot better.
      And if Bear Stearns had gone bankrupt, the whole banking system would have collapsed. Which would have meant YOU really would have lost money.
      The same thing happened in the 1980s with the savings and loan crisis. ***** happens, deal with it.
      • JoshuaLowe, on 03/27/2008, -1/+7And the fact is they didn't deserve ***** for a bailout. The fact the people who levered themselves so far into Bear without bothering to consider the fact that Bear was badly exposed are no less irresponsible than the people who signed on for $700k ARMs on $50k income in the first place. It's not the government's job to reward your bad behavior.
        • heyphyuckyou, on 03/27/2008, -1/+2The government isn't trying to save shareholders, that is pretty much impossible by now. The Fed is trying to create some stability among the banking system, particularly, repo agreements, which is the sector where BS had the liquidity crisis.
          • JoshuaLowe, on 03/27/2008, -0/+1That sentiment is built around FUD, in my opinion.
          • keltin, on 03/27/2008, -0/+3Ya know what *****? It AIN"T GONNA WORK!!! They are NOT going to create stability because they've opened the floodgates on the Fed's money, and they'll just start cranking out more and more, faster and faster, until we are in Deep *****.

            Of course, the people who sold short on Bear Stearns made money hand over fist.

            This is almost like the President and his merry men wanted this to happen. Did I read right about two years ago when an article listed most of Dick Cheney's assets as being in instruments, money and property that was primarily overseas? I hope I'm not a tinfoil hat wearer, but this is ***** ridiculous. I guess it makes it easier to sell the NAU for an impoverished America to join.
          • heyphyuckyou, on 03/28/2008, -1/+0Look, you can have your opinion, that is fine. However, backing up your opinion with some substance would help.

            1) Why would it not work? It already is working. Just because there are new funds available to the market doesn't mean moral hazard problems are going to run rampant all of a sudden. The funds the Fed made available are only accessible by the 20 largest investment banks in the country (who know how to use leverage properly for the most part)
            .
            2) Aside from Dick Cheney not being any kind of financial guru, who cares where his money is? Does he somehow know better than the rest of us? A lot of U.S. organizations invest in foreign companies in large quantity. It is called diversification. And some do it to speculate on emerging markets. This doesn't imply lack of confidence. America will continue to be a center for financial transactions and a key model for capitalism around the world for quite some time, definitely not forever, but it won't be done with anytime soon.
        • Wargalas, on 03/27/2008, -2/+1Obama seems to think so. McCain is the only Presidential candidate that has said that there should be no bailout.

          http://www.rightwinglunatic.com
          • bjornski, on 03/27/2008, -1/+3And in the same speech, he endorsed the Federal Reserves actions.

            "Asked if the Federal Reserve had gone too far last week in moving to prevent the collapse of Bear Stearns, he replied that it was “a close call, but I don’t think so,” because of the impact that the investment bank’s disappearance would have had on Wall Street and throughout the economy."

            http://www.nytimes.com/2008/03/26/us/politics/26mo ...

            Always talking out of both sides of his mouth to pander support.
          • keltin, on 03/27/2008, -1/+1And I wish to hell that there were no bailouts!!! For someone who doesn't know squat on economics, McCain (blast his soul) is the only one of the three that is talking sense. He's the only one of the Big Three that won't do something to make it worse!!
      • chicofaraby, on 03/27/2008, -1/+6"The same thing happened in the 1980s with the savings and loan crisis."

        Which is the last time the far right's stupid economic policies were used. Anyone see a pattern?
        • bjornski, on 03/27/2008, -0/+4Aah, when yet another Bush was plundering the system.

          Right, Neil?
        • JoshuaLowe, on 03/27/2008, -1/+1In fairness the S&L bailout was orchestrated by a staunchly Democrat Congress, not the Fed or the executive branch.
          • chicofaraby, on 03/27/2008, -0/+4Which Congress person signed the bailout into law?
      • miketgt, on 03/29/2008, -0/+0Last time I checked no one has sold anything to JP Morgan yet. First bid was at $2 then they bumped it up to $10 and most of the shareholders are waiting for a higher bid.
    • BionicPimp, on 03/27/2008, -0/+4hold on...the Bear Sterns (BS) corporate officers made out like bandits...the BS shareholders got boned. this includes all sorts of people. union pension funds, IRA's, 401k's, etc...plus the govt. took a huge chunk of the "non-performing" loans off of BS in exchange for money. The trick is that even during the worst of times, not all of those loans are going to go bad, but they are treated as if they were all bad. There are plenty of guys that made a killing during the last real estate crash just by buying up the "bad loans" for pennies on the dollar. Most likely it will actually cost the tax-payers less than the amount of the cash infusion. Then there is the punchline for this capitalistic joke...if BS was allowed to fail...in this economic climate...it would have triggered a global economic depression. If BS failed...then anyone who was using BS to underwrite deals would immediately halt their deals. Other banks, not knowing who BS was underwriting, would immediatly stop issuing credit. stock market crashes. businesses freezup, etc...That is the ultimate "cutting off your nose to spite your face" move.
    • pintomp3, on 03/27/2008, -0/+8privatize the profits, socialize the losses. the worst of both worlds, hooray!
  • niradg, on 03/27/2008, -22/+23George W Bush = worst president evar
    • d03boy, on 03/27/2008, -4/+5it's not just his fault.. it's the entire system we've been using (abusing)... it relies on perpetual growth which simply does not happen
    • knupso, on 03/27/2008, -4/+3So easy to blame it on Bush. Bush is just the latest in long line of dick heads we have been putting in office. This ***** has been happening since before you were born. Wake up and stop electing corporate owned career politicians. It's ***** sad more people know more about the ***** sticks on American Idol than their elected officials.
    • spankaccount, on 03/28/2008, -0/+1The best thing an administration can do with regards to the economy is keep it's hands off of it.
  • DavidJAugustyn, on 03/27/2008, -5/+0The market has also not made any dives in the past nine years, and for that we can be thankful, with inflation rising as it is with food, imports, etc.
    • Acewrap, on 03/27/2008, -1/+2Sept. 17th 2001 doesn't count as a "dive?"
  • caleb4mj, on 03/27/2008, -2/+16I don't know, looks like it might be a good time to invest, IMHO.
    • masterm1nd, on 03/27/2008, -0/+3The problem is, people are wating for rock bottom before investing...
    • zomgflamer, on 03/27/2008, -0/+1since January it has been a great time to short.
    • marksven, on 03/27/2008, -1/+2The stock market loses about 30% in the average recession. We're only down about 13% from the peak right now. It's impossible to know where the bottom is, but here is a simple strategy for knowing when to put your money back in:

      http://ticker-classics.denninger.net/2008/03/long- ...
    • CanIGetAWitness, on 03/29/2008, -0/+1I always follow advice that starts with "I don't know".
  • surf314, on 03/27/2008, -2/+4Is it just me or does this seem to correlate with wars.
    • SAc0balt, on 03/27/2008, -0/+2War and peak oil seeing as we peaked domestically in the 1970s and now we're peaking worldwide.
    • DaDrake, on 03/27/2008, -0/+3It also correlates with world economies. Germany recently reported economic indicators of a recession. What's ironic about the strong Euro is it's hurting European businesses. Suddenly, foreign goods are cheaper and more expensive to foreigners.

      Basically, everything is a double edged sword.
    • joebonk, on 03/27/2008, -0/+1ron paul was right
      http://youtube.com/watch?v=oHg5SJYRHA0
  • frogman54, on 03/27/2008, -1/+11The title confused me. Funk in the 70's was awesome.
  • cledford, on 03/27/2008, -1/+6***** goin' down.
  • Namakemono, on 03/27/2008, -4/+9Hey, I have an idea! How about we borrow money from China to get us out of this funk? Oh, wait...
    • craighoxton, on 03/27/2008, -0/+3You may joke about it but I bet that's what happens - China steps in and buys the US
      • bananasplit1586, on 03/27/2008, -0/+4heh..could be. its what they are doing in Africa at the moment!
        • craighoxton, on 03/28/2008, -0/+1That's right - they're funding African oil wells and mines like crazy
  • midgetloompa, on 03/27/2008, -6/+6So a cyclic market is following a 30-40 year cycle. Gasp.
    • Opiate, on 03/27/2008, -1/+3Yup, let's keep getting _trillions_ more into debt.. false alarm!
    • Acewrap, on 03/27/2008, -1/+3Please remove your head from the sand before posting. Thanks!
  • chanop, on 03/27/2008, -2/+11That's why I only invest in the SOCK market,
    Hanes
    Fruit of the Loom
    walmart socks
    black socks
    white socks
    • marksism, on 03/27/2008, -1/+4Red Sox?
      • chanop, on 03/27/2008, -2/+1NO! Definately not the Red Sox. That's a terrible investment. GO YANKEES!
    • carrtoonist, on 03/27/2008, -0/+4New socks is like a whole week of reasons to get up in the morning.
      • madhouseradio, on 03/27/2008, -0/+2I only wear my socks once for just that reason.

        Seriously though, theres nothing better than wearing new socks + new boxers. Popping tags baby!
  • DangerCollie, on 03/27/2008, -0/+5This is just the warm up act. For a good insight to the real depth of the problem, read this:
    http://www.cnn.com/2008/US/03/26/beck.deficit/inde ...
    I thought I was being paranoid for a long time, thinking in the back of my mind we might finally have reached the tipping point. Not so sure it's all that paranoid now.
    • Eric4556, on 03/27/2008, -2/+2Ok it's a problem but what are we going to do about it? I haven't heard any real suggestions except to raise taxes. If someone could point me to some real solutions then it would be appreciated.
      • bjornski, on 03/27/2008, -0/+2So. You're looking to hear anything but the answer, then?
      • andreegal, on 03/28/2008, -0/+2Lazy at best
  • Jovensdesciple, on 03/27/2008, -5/+5Whaa-hooo! Another made up story to bitch about on digg!!
    • chicofaraby, on 03/27/2008, -2/+2We know. If it reflects badly on the current administration it must be inaccurate.
    • DaDrake, on 03/27/2008, -2/+3You know, the current administration has little influence over the economy. First, congress has MUCH more control then the president (The president can only make suggestions) and their influence is very limited. Ask any economist and they would agree. The fact is, when things aren't going great.... the president is the obvious punching bag. Furthermore, nobody ever credits the President during good times ..... the American people are just bitching about something else.
      • andy314159pi, on 03/27/2008, -1/+4That is a common misnomer. Foreign policy has profound effects on the flow of capital investment. If we make unnecessary wars or have unpopular foreign policy stances, then foreign capital investment will drop off. The richest countries are also the least aggressive ones.
      • DaDrake, on 03/27/2008, -2/+0Sorry andy.... but our current economic problems are caused CLEARLY by bad loaning. The war in Iraq had nothing to do with banks giving mortgages 12X the amount of a person's yearly Salary. Saying otherwise shows you have a profound misunderstanding of the economy.
        • andreegal, on 03/28/2008, -0/+1'no one talks'---roll wind sound....dim lights....end of act.
    • d03boy, on 03/27/2008, -1/+5if you have tons of cash lying around then it may seem made up.. but for most of us, it isn't
  • Picer, on 03/27/2008, -0/+3The other banks still may have more unannounced lending issues, though the fact that I see loan/insurance/Mortagage Ads on cartoon network shows how they are yearning for us to get into debt.
  • bernandoo, on 03/27/2008, -0/+4The S&P is trading at 13 P/E... not 20. Which is well below the historical average.
    • CosmicJustice, on 03/27/2008, -1/+2That's right stocks are on sale. Not only that. the period of time qouted in the article is cherry picked to straddle a crash. If you started buying in 2002 and dollar cost averaged since then, you're way on the upside.
  • Dignan666, on 03/27/2008, -3/+2The stock market is a long term phenomenon. The fact that there have already been two previous stagnant decades makes be believe that this is normal. Of course if you're like me and just got into 401k and IRAs around 5 years ago (at the bottom), then you're enjoying about a 50% return over the past 5 years anyway.

    That being said, i think Obama in office will psychologically help us out of stagnation. Well, that and some resolution to the oil crisis. (yeah, we're in an oil crisis.)
    • BESTenemy, on 03/27/2008, -0/+3Obama's office will help us psychologically? What about physically? What does he say about economics? Is he going to cut funding to the war that's getting us deeper into debt, after having voted to extend funding? What is his position on the federal reserve interest rates policy? What are his plans regarding upcoming oil shortages?

      I know he's a great motivational speaker. He can get a standing ovation just by being able to turn any physical question into a moral rhetoric, while avoiding the issue all together. He's got the character. Luckily for him, people pick charisma over political program or the voting record.
    • DaDrake, on 03/27/2008, -0/+0You are right in some regards. Statistically, there should be about one recession every decade (slightly more than one actually). Furthermore, recessions typically last very shorty (8 months is the average). Essentially, there is a period of panic... stock market goes down.... then everyone realizes the stock market is undervalued and they buy (it gets back to normal).

      Despite this, most Americans seem to think we are in a recession every day. They also somehow have the wrong belief that congress/President plays a significant role in each recession.
    • zomgflamer, on 03/27/2008, -0/+1401K depending on where you got is probably hurting some people. Unless you got a great match up plan. It would be hilarious when the rates drop massively. What a pathetic economy.
  • razorsharpwit, on 03/27/2008, -0/+1Don't worry the gov't will fix it.
  • Sogui, on 03/27/2008, -0/+5Basically it's saying BUY NOW, it won't get this cheap for another 30 years. (Actually prime buying would be 2001-2003)
    • BESTenemy, on 03/27/2008, -0/+1Buy when the loaf of bread is worth a barrel of cash. Make sure by then you have something othre than cash to pay with.
      • stonklit, on 03/27/2008, -0/+0Weird, my bread is still $1.99. Or $2.99.

        Either way, big ***** deal. I don't eat that much bread.

        Or Milk. Or whatever other random common examples people use. Twizzlers. I don't eat those either.

        Everything's still the same price, really.
  • nascapper, on 03/27/2008, -1/+1Duh that pretty much sums it up. Down down down, good article. good link.
  • chicofaraby, on 03/27/2008, -1/+4The solution is obvious: tax cuts for Paris Hilton.
  • Pinkertinkle, on 03/27/2008, -0/+3"But that rule hasn't held up for stocks bought in the late 1990s or 2000."

    Yeah cause that was the height of the dot com boom.
    • zomgflamer, on 03/27/2008, -0/+1Rule right now is the day feds announce rate cut, Buy and Sell the next day.
  • insanebrain, on 03/27/2008, -2/+5troubles are over ?? don't kid yourself. .. the ***** hasn't even begun.
    • BESTenemy, on 03/27/2008, -0/+2Correct. First the FED went into existence in 1913, got the monetary monopoly going and expanded the credit up until 1929. Then it contracted the money in circulation and reposessed assets. Germany was a few years ahead of us, having went through hyperinflation 7 years earlier. They tried paying off WW1 retribution debts with printed money, as well as to boost the economy, but ruined it completely. Hitler then came into power, busting workers' unions and opening up Germany to our investments. We invest into Germany prior to WW2. When the conflict breaks out with hitler trying to cease European banks' gold, we switch sides and lend help to allies that are cash and gold-strpped. We're smart to exclusively demand gold, meanwhile still confiscating gold from our own citizens.

      Skip few decades - we're booming, having been untouched by the war that had left the Europe lying in ruines, but we go on expanding our geopolitical campaign. We go into Korea and Vietnam and put ourselves into debt. Our former allies are aware of our troubles and are willing to lend us a hand in late 60's on equal terms that we've given them in 40's and 60's, by asking for their gold back. The loss of backing undermines our currency further and by 1970 we're broke. France asks for the next installment and Nixon gives them a finger. Our dollar takes a dive, but then, on FED blessing and with guidance from White House Subcommittee on Foreign Relations in 1973 he manages to accomplish something that will bring wealth and prosperity to the US for the next 30 years. He simultaneously signs a weapons deal with Saudi's while giving FED the power to print dollars exclusively for the oil trade. The new arrangement is able to untie US currency from gold all together, basing it fully on credit.

      Every time the FED gets a chance to expand credit they do. The rescue comes when new markets for its currency open up. Internal stock markets react when it is able to pump the dollars off shore.

      What is happening now is that the external venues for the dollar are shrinking. The dollar is being refused as the market has riched the saturation point. There is no demand for it. No "next big thing" coming around the corner. No Germany to invest in. No other substitute for dollar backing. There is nothing to help it get out of the ditch. It was a good investment for a short period specifically because it wasn't backed by gold. While other banks had to acquire backing, ours had to do nothing but hand out credit, take the certificates to FED and have it print 9 dollars for every 1 lended.

      Our rise had been a balloon flight. When the air had cooled off, we released the valve and had it doing fart circles while the air rapidly went out of it. Now we're in a basket tied to a deflated piece of rubber. We're going down and there's nothing stopping us short of another major war, but then we'd be no better than post-Weimar Germany. There are no solutions. None. We've used up our aces.
  • hydroplane, on 03/27/2008, -0/+3Paint the white house black.
  • gonzo22412, on 03/27/2008, -1/+1A funky ball of space teets? From outer space?
  • BUrAph, on 03/27/2008, -2/+1The stock crash in 2001 was catastrophically bad. But the markets have been steadily recovering since then. Let's just hope this current credit crisis doesn't turn out to be as detrimental as the last big recession.
    • DaDrake, on 03/27/2008, -0/+1Actually it wasn't that bad since the market recovered in 7 months.... not to mention nobody realize we were in a recession until 3 months into it. Recessions normally don't last very long (the average is 8 months).
  • cambob76, on 03/27/2008, -2/+5Huge differences between now and the 30s and 70s are 1. current and near-future environmental disasters, 2. the size of the human population, and 3. the fact that we cannot make enough energy for everyone at a cheap price to sustain our standard of living. I doubt very much that things will play out just like they did in the past.
    • phosphodyson, on 03/27/2008, -0/+3*****. You need to read up on your history. The 30s experienced mass environmental disaster in the form of the Dust Bowl, where unsustainable farming practices and a prolonged drought led to the great plains turning into essentially a huge desert. The Dust Bowl period lasted for nearly a decade, and affected some 2.5 million people. It affected both U.S. and Canadian farmers. Literally millions of acres of tillable land were lost.
      As for energy, the 70s experienced OPEC and the Arab Oil embargo, which led to the 70s recession and stagflation.
      All the stuff you are experiencing now, energy, pollution, environmental disasters, terrorism are nothing new. The world has had them since the advent of human societies, and most likely will continue having them well into the foreseeable fture.
  • stonklit, on 03/27/2008, -1/+2One nation under a groove.
  • TheKingsSon, on 03/27/2008, -2/+5This is just the beginning. Anyone who really understands what's happened in the market and the relationship to the continuing falling dollar knows this.

    If you have ANY dollar demoniated assets (or dollars) get rid of them. Put it into gold/silver/almost any foreign currency but get rid of your dollars! You have been Warned!
    • covertbadger, on 03/27/2008, -0/+2Yes! Sell low, buy high! All aboard the gold bandwagon! Shun diversity! Conveniently ignore the >10% plummet from last week and pretend it's all good from here!
      • TheKingsSon, on 03/28/2008, -0/+1But's it's gained back 6% ALREADY. Typical of a Bull market FOR gold
    • stonklit, on 03/27/2008, -0/+3Oh snap. My entire future depends on this one DIGG POST.

      THANK YOU SO MUCH FOR MY SALVATION.

      Come to my house and let's play tickles. I owe you for your vision of the future.
    • ScottMitchell, on 03/27/2008, -0/+1I hope you're right. Back in 2000 I converted all my dollars into PETS.COM stock. Whoops. Then in 2006 I took everything I owned and bought as many houses as I could in San Diego, Las Vegas, and Miami. Now they are all in foreclosure.
      But this gold is a sure thing, right?
  • DaDrake, on 03/27/2008, -3/+7Why do people keep blaming the president? Sorry, but the current problems are the fault of irresponsible lenders getting too ***** greedy. Then banks start to panic, they stop loaning, and it hurts new small businesses, new homeowners, and the ability for corporations to buy insurance (to expand). In reality, the congress has more control over the economy then the President (they approve the budget) and their influence is rather small.

    Its funny.... statistically you should get a recession once every decade. When it happens, everyone blames the president. Also notice how the president never gets credit for a strong market.
    • d03boy, on 03/27/2008, -1/+1if anything, blame Bernanke
    • zomgflamer, on 03/27/2008, -0/+1I agree to an extent. I don't think they should give more loans because if they cannot pay it, it hurts the economy severely. Besides, only few businesses created out of the 1000 will be successful. Instead of giving more loans they should stop ***** out more banks.
    • chicofaraby, on 03/27/2008, -2/+3To be fair, I don't only blame the president. I blame the entire right wing ideology of unchecked greed. How many times does this have to happen before people see a pattern?
  • usingpond, on 03/27/2008, -1/+5As a Republican, I am obliged to inform you that this is a fabrication. So is the difficulty in Iraq. So is everything else "educated" people tell you about "facts" and "overwhelming evidence". Everything is fine, vote Republican in '08!
    • d03boy, on 03/27/2008, -3/+1you honestly think this has to do with democrat/republican? wow... just wow... how many democrats to republicans are in congress?
  • wolferz, on 03/27/2008, -1/+3my math might be a bit rusty.... but 9 years ago wasn't the 70's... 9 years ago was the dot com bubble.
    • chicofaraby, on 03/27/2008, -0/+2It's not your math, it's your reading.
    • wolferz, on 03/27/2008, -0/+1never mind.... This is why i don't usually post anything when I've just woken up...

      Makes perfect sense now that I've had a Cup of Joe.
      • dracostimpy, on 03/27/2008, -0/+1What is the purpose of the caps in "Cup of Joe"? I suppose I could let "Joe" slide even though you're not really using it as a proper noun, but what's the deal with "Cup"?
  • chrissku, on 03/27/2008, -2/+1Now we need George Bush's daily sound bite telling us how excited he is that our economy is looking better. Seriously I think we need to start drug testing politicians. Some of these guys are total goofs. (i.e President Bush)
  • zomgflamer, on 03/27/2008, -1/+1Do we cut rates like every freaking time? BTW of course its going to be in funk when you spending loads of freaking money on war, one little horrible news that says future looks dim, and traders will pull out of it until the feds cut rates and they will buy it again. But they will all sell it once it reaches couple of more percent and the stock will crash once again. What a loads of freaking retards. If you want the stock market to do well, you have to prove traders that its doing well or else they will sell their shares or short another.
  • stonklit, on 03/27/2008, -3/+8Go armchair economists GO!

    I love reading these comments whenever there's a story about our economy. So many people who think they know what they're talking about because they took Economics in high school, or are currently in Econ 101 and their professor told them his opinion on something that they took as gospel.

    Trust me, half of you people have no ***** idea what you're talking about. Just ***** you hear other people say, think is true, then repeat.
    • ColonelJessup, on 03/27/2008, -1/+3AMEN!
    • andy314159pi, on 03/27/2008, -0/+1The linked article is at the WSJ. I'm pretty sure they aren't hacks.
      • stonklit, on 03/27/2008, -0/+0That's fine. I'm talking about the digg comments.

        But those claiming there's a recession and gloom and doom aren't any better. It's sensationalist. It happens every lame duck period. Not to mention it's what's currently driving traffic... so yes, everyone will report on it and give some harebrained idea that isn't remotely close to happening.

        People have wild theories and ideas as to what will happen, but the economy is a thriving beast that can't be easily toppled.

        Never say never? Sure. But trust me, ain't happenin this round.
    • joebonk, on 03/27/2008, -0/+1thats why i like what ron paul says
      http://youtube.com/watch?v=oHg5SJYRHA0
  • boot20, on 03/27/2008, -1/+3God I hate these people shilling gold. Look, gold is just ANOTHER bubble because the sheeple are buying into it, just like the .coms and the stupid real estate boom...Wooo...I'm gonna drive up the price of gold so that people dump it all at once...BRILLIANT!
    • covertbadger, on 03/27/2008, -0/+1Just be thankful that they all went away and sobbed in the corner for a few days after the massive plummet last week. At least we got a small amount of peace and quiet, though it seems like they're coming back out of the woodwork now.
      • ScottMitchell, on 03/27/2008, -0/+2But now that it's down IT'S THE PERFECT TIME TO BUY! Buy now or be priced out forever!!
  • duderdude, on 03/27/2008, -0/+3Of course, if you look at how the market has done in the past 12 years, or the past 7 years, we're doing great, but don't let that impede on this article that cherry-picked it's starting date as the height of the tech bubble.
  • ColonelJessup, on 03/27/2008, -2/+2Here we go again with all the digg.com economic professors...........................
  • nullcodes, on 03/27/2008, -4/+3People are better off and better positioned for the future than they were 9 years ago. That's fact. Most people have 401k's etc. that will be worth a lot of money by the time they retire. Also, more people own their own home these last few years than ever before. People are able to go on more vacations, have stuff like laptops, cell phones, etc. A lot more than 9 years ago Even stuff like teen pregnancy and violent crime is down. So don't say some BS that we have lost a decade when that is clearly false.
  • jjmdirector, on 03/27/2008, -4/+5GOLD AND SILVER BABY... look up Jim Rogers clips and news and you will understand why. The fed is destroying the country
  • Look4Truth, on 03/27/2008, -1/+3You ain't seen nothin' yet.
    • o0joshua0o, on 03/27/2008, -0/+1b-b-b-baby you just ain't seen nothin' yet...
  • nofear8103, on 03/27/2008, -1/+1First off the article is looking back only 9 years which, as anyone who invests in the market regularly, is stupid. In order to get the avg 7-8% usual return you need to be invested over a 20 year period(lets not also forget that the market is not a for sure thing, its a gamble). Additionally to everyone who thinks these rate cuts are the end of the world apparently weren't around back in 02-03 when GASP!! they were 2.25%. Are Americans to far in debt, yes, but you need money to make money. So when rates are lower it encourages businesses (yes those evil corporations that provide many jobs and services to all of you) to expand, which in turn generates more money and jobs which in turn gets taxed and actually strengthens the economy and provides more money to the government.

    I am not pretending to be an expert, but come on people use some common sense.
  • opticwind, on 03/27/2008, -0/+4Hold on, the stock market was at record highs and sales for the last few years, we are just NOW going down.
  • LastVisibleDog, on 03/27/2008, -3/+1This is silly - the late 90's was an unsustainable stock market bubble (and subsequent crash - it crashed in 99, the magic starting point of this article) - over the last couple years the stock market has hit record highs - this is spin. (not saying everything is peachy - this article is just trying to cash in on blind fear)
  • Look4Truth, on 03/27/2008, -0/+1It's not just the market guys...

    http://digg.com/business_finance/Economy_Sputters_ ...

    Plus, the markets are manipulated and there are many more factors that determine the health of our economy.
  • NelsonR, on 03/27/2008, -0/+1The other past recessions did not have the housing market in such dire straights nor did it have an economy based on consumer spending, all outsourced now. The consumers today are broke with inflation and unemployment numbers increasingly getting worse. Guess I should read some of these optimistic post to look on bright side of their mirage.
  • traart28, on 03/27/2008, -1/+0The economy crisis, but a strong fall of the stock market will not. By the end of 2008 or the first half of 2009, the situation should improve.
    The main thing is that the new President of the United States became Obama or Hillary (not McCain).

    S&P 500 well be 1350-1400 (on 12-31-2008)
    Buy futures on crude oil, gold.
    Buy oil & gas, silver-gold
    for example, APC, COP, VLO
  • siktath, on 03/27/2008, -0/+1Time to buy. You're welcome.
  • bratpack8, on 03/27/2008, -0/+2If anyone thinks we hit bottom, they are in for a huge surprise. That doesn't mean the stock market will go lower, because at some point it will rise just like the price of everything else when the money is inflated. But a higher stock market doesn't make one wealthier.
  • ramiro, on 03/28/2008, -0/+1Who would know, with all the credit and real estate crisis, REITs would give such a high annual return.
  • andreegal, on 03/28/2008, -0/+1The Mother Load is here!!
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