Deseret News | Dow finishes below 10,000 for first time since '04

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Dow finishes below 10,000 for first time since '04

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Doug | 9:04 a.m. Oct. 6, 2008

Well, that bailout bill did a lot of good. Way to go guys!

Lights out. | 9:19 a.m. Oct. 6, 2008

I guess the stock market computers were correct.
We can't get above 10,000.

I blame the Republicans and Democrats and the Greed on Wall Street.

Last one out of this economy be sure and turn the lights off.

Anonymous | 9:51 a.m. Oct. 6, 2008

The wealthy made a killing selling short.

Comments continue below

Well let see. | 9:57 a.m. Oct. 6, 2008

90% of the people are against a bailout. You are the government and you do it anyway.

90% of the people then pull their money out of the banks and the market cause they no longer have any trust left in either.

What did they expect?

Wow | 10:24 a.m. Oct. 6, 2008

Well, here we are, at election time, the Republicans are trying to draw attention away from Wall Street (that only makes them look guilty).
The truth is that there is blame to go around, both parties should be explaining what we need to do to get out of this mess, not trying to avoid it, or blame the other.

We need true leadership right now, we are in this together, and we need to work together.

Ernest T. Bass | 10:35 a.m. Oct. 6, 2008

Thanks for another job well done, shrub!

Shocking | 10:38 a.m. Oct. 6, 2008

Gosh, you mean the bailout that just had to be passed didn't work? Shocking, absolutly shocking!! I'm no financial genius but I could have told you that. The government will be back for more money to throw at the fire, just wait.

Yikes! | 10:41 a.m. Oct. 6, 2008

I guess John McCain better suspend his campaign again.

Woo Hoo! | 10:50 a.m. Oct. 6, 2008

Cheap stocks! Thank you Congress!

Observer | 10:57 a.m. Oct. 6, 2008

Let's put the blame where it lies. The blame lies directly on the shoulders of Republicans and their economic policies of the last 8 years. Trickle down, deregulation, tax cuts for the very wealthy, unnecessary wars, government for the corporations not the American citizen. Republicans, including Utah Republicans, supported these policies wholeheartedly, and now the chickens have come home to roost. It's a total, and complete failure of Republican policies. Now, we all know that the Republicans are going to blame Democrats, even Clinton who's been out of office for 8 years. But that isn't going to cut it with the majority of Americans any longer. Time for Republicans to step up and be the party of personal responsibility that they claim to be, and own this mess, because it's theirs.

Mickey | 11:00 a.m. Oct. 6, 2008

I am very concerned about the future of our financial institutions.

jean | 11:01 a.m. Oct. 6, 2008

The guilt goes from tha bottom all the way to the top. If we all practiced living within our means we could have avioded giving "preditory lenders" anything to prey upon.

I went to our local credit union 3 years ago and laughed at the posters they had hanging up.

One showed a row boat next to a very nice motor boat and touted their loans saying you could have the nicer of the two.

One you own, one you don't. Who wins? The bank. Who looses? In the end - the bank, the counrty, and YOU.

Think!

Anon | 11:32 a.m. Oct. 6, 2008

All right! An Ernest T. Bass sighting! Where's my camera?

CALMING PERSPECTIVE | 12:08 p.m. Oct. 6, 2008

It is worth noting that during the last half century the S&P 500* experienced 11 bear-markets, with an average return of -20% and lasting 13 months.

Each bear market however, was followed by a bull market which increased an average of 119% and lasted 37 months. (Source: Putnam Investments)

S&L AFTERMATH

The last great financial crisis was the Savings and Loan crisis which peaked in October of 1990. During the 12-month period ending 10/31/1990 the markets declined:

S&P 500 -7.47%

S&P 500 Financials -38.60%

S&P Major Regional Banks -48.95%

S&P Money Center Banks -50.84%

Two years later however, the markets had recovered as follows: (10/31/1992)

S&P 500 46.49%

S&P 500 Financials 104.98%

S&P Major Regional Banks 141.85%

S&P Money Center Banks 96.77% (Source: First Trust)

Anonymous | 12:22 p.m. Oct. 6, 2008

I'm financing a forthcoming trip to vegas by the margin on bringing home several hundred kilograms of beer and the now forbidden malt beverages. Some things are still recession proof.

Housing | 12:23 p.m. Oct. 6, 2008

Housing will continue to slide. My guess is another 20 - 30 percent in SLC. Without credit being freely handed out, few will qualify. Yet we still see list prices at the bubble levels. Wake up people! Take 10-20% off of the market price and you will get buyers. The dow is off 40% from its highs...housing will be at least that.

Next move | 12:28 p.m. Oct. 6, 2008

is to lower the Fed rate right? Then we can expect to see another 10% decline in the dow.

That'll just cause the banks to pay lower interest on savings and checking causing more people to pull their money out.

The only answer is to raise the fed funds rate to 7% now, and get government out of competition with depositors! Do not lower the fed rate - that is the absolutely wrong answer.

debt | 12:40 p.m. Oct. 6, 2008

When has that word ever been a good word. Weren't we already in debt HELLO. So far, I have not heard one person that has been for the bailout. So once again the American public has been bullswaggled by their fearless leaders. Any time that Bush says "trust me on this" we need to run for the hills. Why didn't we just let the market correct itself, like back in the Saving and Loan days. Every thing worked out then and it would have now. But we have been HAD.The day the bail out was announced our market dropped 800 pts. and the day it didn't pass it went up. Let the banks, merge, the other ones, falter, let the CEO's give back their millions or at least half and GO TO JAIL. Or give the money to the American people so that we can get our finances back in order.

Re: Observer | 12:49 p.m. Oct. 6, 2008

That is absolutely false that the world economic problem lies squarely with the Republicans. It's a blatant lie. Here's why:

1) This problem is a world-wide problem, not limited to the U.S. The socialist governments of France, Sweden, etc., etc. have not been any more successful preventing the meltdown.

2) The Democrats have held the majority in congress for 2 years, overseeing committees such as the banking and finance committees.

3) Democrats pushed Fannie and Freddie to loan money to people who had no business getting mortgage loans. This merely served to artificially ratchet up home prices.

4) I live in one of the bluest states in the U.S. Our economy is MUCH worse than Utah's. So having Democrats in charge doesn't seem to help.

I don't say the Republicans are blameless, but to let the donkeys off the hook is WRONG. And let's not over-react by rushing into the waiting arms of socialism. We all know that system never, ever works. If you disagree, name me one time and place it ever did.

Value | 12:50 p.m. Oct. 6, 2008

I'm not surprised that the Dow is down. Completely apart from the bailout, consumer confidence, and all that stuff the "expert" spout, the value of stock to an investor is based on return. Either you get a return in dividends or in appreciation when you sell. But the bottom-line value is really what the dividends are. All else is speculation, based largely on inflation. The same is true in real estate. There is a certain value to a home, based on cost to build and your need of just that home. Everything above that is also speculation.

We have been warned for generations about speculation. Wise people are careful to consider the actual value of something--whether stocks or real estate--before they buy. But many of us hoped to make a "profit" with our purchases and didn't consider just how much of that increased "value" was actually based on speculation and inflation.

Now we may have to pay the piper and it's going to hurt. But if we are willing to exercise good financial sense and self-discipline, we may get thru this crisis, too. It's going to be tough and we, including government, are going to have to cut back.

The Media | 12:51 p.m. Oct. 6, 2008

The next group that needs to go to jail is the media. Fear sells and the media has been exaggerating and unleashing one bad news story after another since last fall. They don't report the facts, they twist, exaggerate and distort them to boost ratings and sell more papers.

Keating Five | 1:04 p.m. Oct. 6, 2008

McCain set precedence with saving and loan crisis. Obama has a plan!

You People | 1:18 p.m. Oct. 6, 2008

You people who were preaching that we needed the bailout should be running scared today. I feel that it the bailout didn't happen that we'd be doing better today. That should teach ya to trust the government.

market a joke | 1:19 p.m. Oct. 6, 2008

the stock market is a joke. 700 billion and the stock market plunges 800 points. One thing is clear, playing the market is not much different than playing black jack in Vegas. Your chances of a good return are about the same.

C.W. | 1:48 p.m. Oct. 6, 2008

I have to agree with "Wow" on this one. The only question is WHEN Bush and Congress comes back for more bailout money, and when Obama is elected, what new entitlement programs he'll have us pay for. THIS IS SHAPING UP TO BE ONE OF THE WORST TIMES IN U.S. HISTORY. No confidence in either Congress or the
President! Where are the TRUE leaders and statesmen?

RE: Observer | 1:53 p.m. Oct. 6, 2008

You must observe with your eyes closed. While neither party is without blame, it was the "Right of all Americans to own a home" regardless of their credit worthiness which was pushed for and instigated by the Democrats that really started this debacle. Then, the Republican administration, eager for the vote of those who had benefited from Democratic stupidity, closed their eyes to the problem.

This problem will not end until we end entitlements and expect all Americans to earn what they receive. That is true for those at the top of the income bracket and especially for those who want to work the welfare and entitlement system.

Let's throw all the bums out and start over.

lost in DC | 1:58 p.m. Oct. 6, 2008

I'd like to ask our 10:57 'Observer" why Chris Dodd and that idiot Schumer opposed regulation on Fannie and Freddie in 2005 that would have required sound underwriting on mortgage loans and prevented all this from happening?

I'd also like to ask him which letter Dudd and Scummer have after their names, R or D?

I'd also like to ask him which existing regulation Bush suspended or which regulation passed by queen nancy's and clown prince harry's congress that Bush vetoed?

I don't suspect he'll be able to give me an answer.

Much of the melt-down is confidence related. That idiot Schumer's comments in July caused the run on IndyMac, and confidence has gone downhill ever since. We would still have problems even if he hadn't opened his yap, but I suspect he contributed the confidence crisis.

Re: Observer | 1:59 p.m. Oct. 6, 2008

Your comments display your ignorance. The problem is politicians and politics. Different parts of these problems were introduced by both parties. Neither is exempt. Democrats took back the congress 4 years ago, with the promise of change. Where are the promised changes to bring the promised Utopia? Why didn't they correct this before it happened?

The truth is both parties have screwed it up. Rather than addressing the issues, they spend all of their time (like you) trying to score political points. The answer is to just shut up and get to work. Tell us how great you are AFTER you fix the problem.

Conservative | 2:17 p.m. Oct. 6, 2008

I can join you in poking at Bush, but he didn't do this alone. The Dems helped too. A lot!
As a nation we have learned that being borrowers and consumers is not sustainable.

Phew... | 2:22 p.m. Oct. 6, 2008

...Im just glad we got our stadium built when we did.

re:observer... | 2:40 p.m. Oct. 6, 2008

hopefully all Democrats are not as lacking for facts as you are. Wake up and realize Harry and Nancy have been in charge for almost two years. Where were they? What have they been doing? Barney and Chris were watching over the banking industry...where have they been...oh yes...drinking from the political donation trough and turning their heads the other way. Sorry to tell you this John and George have been warning of this disaster for several years. Don't blame them alone.

good or bad advice? | 2:54 p.m. Oct. 6, 2008

From a kind caring economist.

We face extreme danger. Unless there is immediate intervention on every front by all the major powers acting in concert, we risk a disintegration of global finance within days. Nobody will be spared, unless they own GOLD BARS.~~
Anyone ever tried to eat a Gold Bar?

Get your food storage!
I would much rather have a Granola Bar.
Doesn't matter if the stock marked goes over 10,000 or not.

Re: Keating Five | 2:59 p.m. Oct. 6, 2008

I have a plan too. Its called "QUIT BUYING THINGS YOU CAN'T AFFORD". And best of all my plan leaves our democracy in tact.

Surprise | 3:02 p.m. Oct. 6, 2008

The $700 billion didn't resurrect the markets? What a surprise! How much more will it take? Who's next? When will the house of cards fall? Bush is going down as the WORST president ever. Too bad Obama and/or McCain didn't stand up and say "What are you guys smoking? You're just delaying the inevitable". Oh, and thanks Conference GA's. We'll go down with a smile on our faces and a happy attitude. I'm so happy to be an ostrich with my head in the sand, and a smile on my beak.

Re:re: Observer | 3:05 p.m. Oct. 6, 2008

Just as predicted. Republicans would be blaming the Democrats for Republican failed policies of trickle down, deregulation, tax cuts for the very wealthy and big oil, government for big corporations instead of the American citizen, unnecessary war, largest trade and budget deficits in history, a growing disparity in income, more and more without health care, high unemployment. Surprised you didn't mention Clinton. Save your talking points, they only work with the Limbaugh crowd. The American people know who caused this mess, and it isn't the Democrats.

Frustrated | 3:12 p.m. Oct. 6, 2008

As we look at our country and at the people in it, it seems almost inevitable that this is happening. Many have lost their moral compass. Integrity has no meaning it's just a word to them. Loyalty is now something they've substituted greed for. There is no loyalty to their company and employees that they were given charge over as a CEO. Greed has taken the place of many good virtues now. If I were one of these CEO's in question I would hang my head in shame and give back every penny of a golden parachute. I would feel responsible for every employee that had lost their job. These men have no self accountability for wrong doing it appears. We as a people must hold them accountable for their actions. I would hope that every one of them is investigated thoroughly for their actions and punished appropriately if convicted. We need to make the punnishments much heavier than they presently are for white collar crimes. Right now a bank robber that gets $2000 from a robbery will spend as much time or more in prison as the Multi Millionare CEO's will. That's not right!

Marie Devine | 3:14 p.m. Oct. 6, 2008

"Look up your redemption draws near." Our whole system is geared toward employment (slavery to one another), debt, insurance, holding back wages for a future time (retirement), education that exalts one person above another for money and prestige. All these things are against God's guidance. The system is falling so that God's system can come in.

The goal in life is not employment; that created the world problems. The goal is a retirement lifestyle in a garden paradise that we can create here and now. That solves the world problems at the same time. If we do not show God we want it, it will not come. Jesus cannot come until all his enemies are under his feet. If we continue against God's word, we are the enemy.

Register to vote. Pray for God's plan of redemption for earth and the people. He has gone before us; the way is propared. Watch for an October surprise and vote for God's ways.

Some say God's people should not vote. That is a lie out of the pit of hell to keep righteous people out of office. The people of God MUST vote for His ways.

Anonymous | 3:19 p.m. Oct. 6, 2008

For the first time in my life, I'm glad I'm already broke. At least I don't have to worry about losing anything.

Kevin | 3:29 p.m. Oct. 6, 2008

@Observer, et al.

As far as regulation is concerned, the greatest problem came with the Commodity Futures Modernization Act of 2000, which enabled credit default swaps to be unregulated, and the 1999 expansion of the Community Reinvestment Act (aka Gramm-Leach-Bliley Act), which put pressure on lenders to loan subprime.

Both of these acts were signed by Bill Clinton. There were Clinton appointees in the Treasury and the SEC at this time. They both had bi-partisan support.

Therefore, I conclude there is no partisan blame for this debacle.

Re: Observer | 3:37 p.m. Oct. 6, 2008

Good point. That republican Clinton administration never should have pressured financial institutions to hand out loans to those who had no way of paying them back. Stupid republicans!

Ignorance Is Not Bliss! | 3:38 p.m. Oct. 6, 2008

To Observer, your ignorance is blaring (typical of your party affiliation). Your commentary suggests that government can regulate and spend to solve life's problems. Yes, government is responsible for the crisis. Whatever party or politician that injects government into free market is to blame. If you'd study a little to understand economics you would grasp this concept. Or maybe ignorance is bliss?

Government involvement in Freddie Mac & Fannie Mae IS THE EPICENTER of the current economic crisis. Government restricting mortgage lenders' ability to require down payments and properly check credit scores plays a huge role as well. Yes, government mandated to banks how to do their business (OVER-REGULATION)

I suggest you do a little research to find which party intruded government into Freddie Mac & Fannie Mae & mandated how to qualify borrowers. Government control of economic enterprise is called "SOCIALISM". "Tax, spend, regulate", hmmm...which party walks this walk?

Free market entails personal responsibility, hard work, limited government, minimal taxes! If I must choose between dumb & dumber this election, I'll go with the party closest to free agency/market & self-reliance.

The current economic problems are a direct result of government intervention into free market economics.

Joseph Atwater | 3:38 p.m. Oct. 6, 2008

What I said two weeks ago about the republicans lining their pockets with the 700 billion dollars! Todays headlines: " Days from becoming the largest bankruptcy in US history, Lehman Brothers steered millions to departing executives even while pleading for a federal rescue, Congress has heard.
Dont even try to blame the Socialist countries on this one folks..its squarely coming from the Republicans.In Australia we have Free Health care services- Paid Maternity Leave Social welfare for the Needy and a good sound enviable economy...US citizen living in Austarlia

rvalens2 | 4:06 p.m. Oct. 6, 2008

Congress passes the laws and the President signs them. Both Democrats and Republicans share the blame. So let's do away with the "finger pointing."

When are WE THE PEOPLE going to realize we need to rise up and throw the bums out.

A revolutionary concept? I don't think so. It was enshrined in our Declaration of Independence 232 years ago.

"Governments are instituted among Men, deriving their just Powers from the Consent of the Governed, that whenever any Form of Government becomes destructive of these Ends, it is the Right of the People to alter or to abolish it, and to institute new Government."

More righteous people | 4:34 p.m. Oct. 6, 2008

in office like the ones that have been there tearing appart our country.

Exactly what we need.

Not So Politically Correct | 4:47 p.m. Oct. 6, 2008

Both parties are to blame. Both parties allow these liberal views of society overpower their judgement. Or is it just plain selling this countries future for votes? Affirmative Action thinking is never going to work. Let the minorities, would can't other wise qualify loans, buy a big house and live the American dream? Bad Policy, Liberal Policy, Stupid Policy. Cuba can drill closer to our shores than we can! Bad Policy, Liberal Policy, Stupid Policy. Yes, you can blame this adminstration, but you better think about your values and your political views when you vote next month.

Cant Be True | 4:51 p.m. Oct. 6, 2008

What the bailout didn't fix the situation?

Observer | 4:53 p.m. Oct. 6, 2008

Americans, for the most part, are paying attention to the real issues. They're not blinded by the talking points of right wing radio, their religious leaders, and Fox News, like Utah Republicans are. The polls are showing this with a strong trend toward Obama. A lead that is getting stronger every day. Regardless of how Republicans would like to blame the economic mess on the Democrats, who have had a small majority in congress for only 2 years. A majority not large enough to pass any major legislation. The total fault for the economic collapse is Republican policies. Deregulation, trickle down economics, an unnecessary war in Iraq, health care that's becoming more and more expensive for most Americans, increasing unemployment, a growing disparity in income, tax policies favoring the very wealthy, government for the corporations not the American people, torture, spying on Americans, with us or against us foreign policy, a tripling of lobbyists in DC under Bush, dirty political campaigns, picking a vp candidate to pander to the religious right. Obama/Biden 08. Time for REAL change.

DMH | 5:08 p.m. Oct. 6, 2008

Once again, we the people are correct and our government screwed up. I cannot lay blame on one party or another, because they have both let us down as citizens of the United States. If we want to have any chance of turning things around, we must not vote for McCain or Obama. These two jokers will do nothing but destroy our country and take all of us with them. We must vote in some of the independants into Congress and the White House. I would vote for Ralph Nader, because he has a firm grasp of the situation and can turn this around. The middle class has been taken advantage of for far too long, and we are not looking for tax breaks either. All we need is to have our cost of living expenses regulated and then we will have the money we need to put back into the economy, and then it will fix itself.

RE: Observer | 5:17 p.m. Oct. 6, 2008

Your ignorance is blaring (typical of your party affiliation). Your commentary suggests that government can regulate and spend to solve life's problems. Yes, government is responsible for the crisis. Whatever party or politician that injects government into free market is to blame. If you'd study a little to understand economics you would grasp this concept. Or maybe ignorance is bliss?

Government involvement in Freddie Mac & Fannie Mae IS THE EPICENTER of most of the current economic crisis. Government restricting mortgage lenders' ability to require down payments and properly check credit scores plays a huge role as well. Yes, government mandated to banks how to do their business (OVER-REGULATION)

I suggest you do a little research to find which party intruded government into Freddy Mac & Fanny Mae & mandated how to qualify borrowers. Government control of economic enterprise is called "SOCIALISM". "Tax, spend, regulate", hmmm...which party walks this walk?

Free market entails personal responsibility, hard work, limited government, minimal taxes! If I must choose between dumb & dumber this election, I'll go with the party closest to free agency/market & self-reliance.

The current economic problems are a direct result of government intervention into our free market system.

concerned | 5:31 p.m. Oct. 6, 2008

People wake up! all the money problems are caused by global warming.

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