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Wall Street babies throw another fit

There just is no pleasing Wall Street. Good economic news no longer buoys the market.

Oil prices are a several month low $66 a barrel - that's not good enough because OPEC might cut production on Friday and we'd better get scared now that prices will go up. Gas prices are down to (or even below) the $2.50 range in many markets, but you'd think they were approaching $5.00 a gallon.

The market realized a decent gain yesterday - but that was fueled by speculation of a third (second by their count because they don't count the July "Housing Stimulus" package) Congressional bailout.

Today, the market was back down by over 400 points (I didn't even look at the closing numbers - this is just too ridiculous to comprehend).

Also, companies are still making money, but they're not as much as they thought they would - so this has investors in a tailspin as they stomp and kick their feet in anger.

So get ready to factor in a tax hike (certainly the expiration of the Bush tax cuts), Christmas retail sales that may not be very robust (but they say this every year), and expected rising unemployment to keep Wall Street crying for even more bailouts - and the indicies will continue to fall until they get them.

There definitely is something to be said for privately owned companies - large or small.

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Posted by Steve Hoffacker - Real Estate Sales & Marketing Consulting and Strategies on 10/22/2008 08:18 PM

Comments (36)

Wall Street Bailout in the ActiveRain Channel

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Originally posted at: Steve Hoffacker's Sales Quips: Wall Street babies throw another fit

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36 Comments on Wall Street babies throw another fit

OCT

2008

Steve, you are so right!! I can;t even look at it anymore either! Npthing pleases them! We can;t control the market we can only change the way we work in it!

The only problem is that we simply do not have any more money. When our system went unchecked for as long as it did (almost 30 years) and continued to go up and then up and then up again, it finally had to come down and oh boy has it come down. It probably is not through descending......just hang on ans work like crazy to survive!

Ryan,

It seems to be so out of control that no one knows how to appeal to the investors except to be constantly pandering to them. :)

Steve

Bo,

I don't doubt that a further correction is in order. but as for money, I don't see that as the issue - just expectations. :)

Steve

I have to admit that earnings coming in under expectations is actually a good reason for Wall Street to burp. But, the funny thing is that there is a pattern of buying on good rumor and then selling on good news, and selling on bad rumor and buying on bad news... so, it seems so freaky from the outside. On good news, the market drops, and on bad news it goes up...

Lane,

Good explanation, but why such theatrics in the market and cries for more money infusion? :)

Steve

Just when it jumps and we are encouraged, the next day all the fraidy cats sell out, to get their money while it is still there....can't say I can blame them.....but lets ride it out...

It's not funny (the way they act) but I am laughing at the way this was written and your concise points! Thanks!

Pat,

I have no issue with profit taking, but the market used to be strong enough to absorb this and still keep ticking. :)

Steve

Russell,

Thank you. It wasn't necessarily meant to be humorous, but I'm glad you enjoyed it. I don't have any answers, do you? :)

Steve

OCT

2008

The Asian markets are tanking bigtime right now. BUCKLE up for tomorrow is ureto be a wikd wild ride on WALL STREET.

The best thing to do is look at your portfolio once a week instead of daily.

Otherwise we might be jumping off of our roof tops!

Why did I buy a ranch style home?

Was I not planning for the future?!!!

Craig,

That is a good one. Plan for the future. I am not that market savvy. Does anyone know a potential positive outcome for this? :)

Steve

Yes! The positive outcome from this is people will be much more conscious of their spending habits. No more living on credit, no more spending beyond their means, and no more "no doc", interest only loans. Also, any Realtor who survives this will be all that much stronger. Say good bye to the part timers and the Realtors who just don't get it. I've seen the thinning of the herd already and it's not a bad thing. Lastly, the government will be held much more accountable for pork barrel spending and pet projects.

Craig,

Absolutely it's a great thing the Realtors, agents, and builders who weren't making a go of their business or who were just hanging on are being thinned out. The ranks had swelled way too much. But that's OK they tried. That's part of our free enterprise system, As for government being more responsible. I don't see this happening any time soon. Congress makes their living off of earmarks. :)

Steve

June,

We'll see. It's interesting how other markets used to take their cue from us, and now the Asian markets seem more prominent. :)

Steve

Steve,

I'm not going to defend Wall St. As far as why they are asking for the money... because they can get it. Do you think for one second that if the NAR thought they could get a giant bailout package for agents that they would turn it down? Of course, if they got it, do you think we would see any of it? (different post...)

But, right now Wall St. knows that they are in line for some cash... so they are lining up. I don't agree, and I think that we need to see some major failures... of course if GM goes down much more, I'll be able to buy the whole company.

Lane,

I think you're right. They can get it, and Congress is meek enough and loose enough with our money just to fork it on over. Question: at what point will they have enough money? :)

Steve

Steve,

THE SKY IS FALLING!! Oh sorry, I meant to say: "Why did my money go?" How can a company heavily invested in oil lose value?? The stock market is a mystery right now.

Ann

Steve, you are right. I'm sick of the ups and downs and Wall Street issues. Welcome to reality.. it is hitting all of us. They are never happy.

valerie osterhoudt

Ann,

The stock market really is devilish right now, and then Greenspan says he made a mistake in counting on banks. :)

Steve

Valerie,

Tomorrow we'll have the OPEC news to factor into their ups and downs also. :)

Steve

I email my financial planner: "Coldwell Banker is having a 10 Day Sale! We're reducing prices by 5% or more on 173 select properties...." (yada, yada, yada....)

My financial planner replies: "That's great, Paula! We're doing the same thing with the stock market, only our sale prices are 30-50% off."

A serious situation, but his reply was humorous. I just keep pressing on with my business and trying to make a difference one day at a time.

OCT

2008

Steve,

Hmmm...so it was not a good idea to give banks a blank check? Wow! That is a revelation. NOT!

The government would have done better to have given the money to private citizens to spend and stimulate the economy. I would have been happy to have $50,000 to spend on whatever.

Does this sound like another bailout? The S and L mess?

Ann

Ann,

I was never a fan of Greenspan anyway. Now he has proven why I never had any confidence in him. This is not the time for a meaningless mea culpa with no consequences. He messed it up, force him to fix it. :)

Steve

Paula,

Newt Gingrich (whether you're a fan of his or not) seems to have a sensible plan for healing the stock market that requires NO bailout. Why won't people give him a serious hearing? Maybe they don't want it fixed? :)

Steve

Steve,

I think the better question is when will Congress say that enough is enough?

Look from the Wall St. angle... when would you think you got enough money? Ever? They will always see something that they'd love to have someone else fix. Congress is supposed to be building and maintaining a framework... not handing out revenue.

Lane,

This is really a conundrum. When has Congress ever stopped spending money unless it was for the military or the war effort? :)

Steve

Steve,

Do you suppose Greenspan feels any responsibility for the problems? Do you suppose any of them do?

Ann

Ann,

For Greenspan - not enough to give withdraw his book or give back the money when it now appears that it was the problem and not enough to offer to work for free to try to fix some of the mess his mistakes caused. Barney Frank gets to hold hearing and investigate the subprime issues that he actually caused. Chris Cox still has a job. Gee. :)

Steve

OCT

2008

Steve, ever notice in local politics, when things are flush, they do a lot of arts grants... but when there are cuts to be made, it will be Police and Fire... so they need to raise taxes.

Lane,

Very good. You're right. Thanks for adding that insight. :)

Steve

OCT

2008

Steve,

Have you ever noticed how some municipalities will tax and spend while others will borrow and spend? You know, postponing the taxing until another day?

Ann