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Can someone explain to me

Discussion in 'BBS Hangout: Debate & Discussion' started by LonghornFan, Nov 7, 2012.

  1. LonghornFan

    LonghornFan Contributing Member

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    Why the stock market is going down the toilet today? The DOW, NASDAQ and the S&P are down by around 2.5%. Is this normal after an election? I thought it was always rosy in November and December after an election? This is insane.
     
  2. SamFisher

    SamFisher Virtuous

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    Europe, fiscal cliff worrywarting is the conventional explanation. So big money boys are buying T-bills and selling equities.
     
  3. justtxyank

    justtxyank Contributing Member

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    The deepening European recession, fiscal cliff, tax increases, health insurance companies dropping (Humana down 10%, UHC down 5%, Aetna down 4%, Blue Cross (wellpoint) down 6%, Cigna down 2%...
     
  4. Dubious

    Dubious Contributing Member

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    The market goes up on expectation and down on realization.

    I'm sure a lot of recent buyers were hanging on to hopes Romney would make the rich richer. Maybe people are taking capital gains before Obama can raise the rate. :rolleyes:
     
  5. RocketMan Tex

    RocketMan Tex Contributing Member

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    Their boy lost
     
  6. justtxyank

    justtxyank Contributing Member

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    Are you under the impression that Obama is anti-Wallstreet?
     
  7. Major

    Major Member

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    Europe. The markets were up overnight, indicated it wasn't related to the election. The collapse started when Mario Draghi made some comments regarding a vote taking place in Greece tonight that will determine the future of their bailout.
     
  8. Major

    Major Member

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    Markets will also likely be very volatile for the next 2 months during the fiscal cliff negotiations, because you can be sure that both parties will take this down to the wire and cause all sorts of unnecessary panic.
     
  9. SamFisher

    SamFisher Virtuous

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    Both parties? This whole thing is the product of one party being outrageously and ridiculously intransigent in pulling a lame-ass stunt with the debt ceiling. And one which will deploy tricks like the filibuster to get its way without regard for the underlying rationallity/harm.

    So yeah, both parties will take it down to the wire, because one party has behaved completely irresponsibly and is willing to hold the economy hostage.
     
    1 person likes this.
  10. WNBA

    WNBA Member

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    Watch the news. There is a tiny civil war going on.
     
  11. LonghornFan

    LonghornFan Contributing Member

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    Are you kidding me? Where? :rolleyes:

    Thanks for those with serious replies and not tarding it up like that post.
     
  12. robbie380

    robbie380 ლ(▀̿Ĺ̯▀̿ ̿ლ)
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    I think a lot of the selling has to do with realization that taxes will be going up.
     
  13. SamFisher

    SamFisher Virtuous

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    I suppose you can argue that people are selling now to avoid capital gains tax increases later (which have been in the books for 2 years...) but i'm skeptical that it's really people churning their personal accounts enoguh to move the market that much, no?

    HOnestly I think you should just tax cap gains and ordinary income the same. You can reduce rates slightly to minimize the hit. Then you don't create silly incentives to shift around into this or that.
     
  14. Mr. Clutch

    Mr. Clutch Contributing Member

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    Greece has pretty big vote on some cuts.

    My guess is there is something bad in the offing there.
     
  15. Invisible Fan

    Invisible Fan Insider Newsletter™ 2X Diamond Member

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    Regulation and fiscal uncertainty.

    reexamination of the cap gains tax rate

    Markets are short term. Investors thnk romneys changes would be softer for biz.
     
  16. DonnyMost

    DonnyMost clean your room bucko
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    Are you under the impression that Obama is as 'pro Wallstreet' as Romney?
     
  17. ima_drummer2k

    ima_drummer2k Contributing Member

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    I think it's this whole CSN Houston thing.
     
  18. Major

    Major Member

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    That wouldn't explain why futures were higher overnight and the market immediately started coming down when the ECB comments happened. Or why the market stabilized and immediately rebounded the very minute that Europe closed.
     
  19. Northside Storm

    Northside Storm Contributing Member

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    From GLOBAL ECONOMY 11:44am
    Athens braced for crunch austerity vote
    Measures must be approved in return for debt relief

    Mass resignations hit Bank of Greece
    Greek politician’s stance threatens vote

    Fearing Cuts, 45 Bank of Greece Execs Quit
    Violent protests in Greece against austerity vote
    Crude Futures Drop on Greek Austerity Vote, Rising U.S. Supply
     
  20. robbie380

    robbie380 ლ(▀̿Ĺ̯▀̿ ̿ლ)
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    Don't forget dividends too. High yielding div stocks got nailed pretty good. They will drop in price due to their effective after tax yield dropping.

    Anyhow, the market is spastic and does stupid things all the time. It gave me some decent trading opportunities today. People were buying the market into the election hoping for a Romney victory. That didn't happen. I think there is a strong chance we are back to where we were on Monday in the market by the end of the week or even today.
     

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