It’s not called a helicopter drop for nothing
Chuck Ponzi January 22nd, 2008
Today the stock market was set to continue a punishing selloff due to more concerns about the overall health of the economy. It seems we have oscillated from irrational exuberance to unmitigated fear, as talks began in earnest of giving tax rebates… which coincidentally is an interesting proposition.
The greatest fear has been that the FED will be “pushing on a string” with any monetary stimulus, hence the common reference to “helicopter drops” that Ben Bernanke has been often quoted, and in fact his moniker sports Helicopter Ben for a reason.
The current proposals include a monetary stimulus (shock and awe rate cuts) and fiscal (through crazy tax rebates) stimulus that intends to shock the consumer into buying more stuff. Whether they have any effect is still open.
Coincidentally, I actually bought some stock today. Not financial. Not consumer related.
Good thing American Idol is back on in America, or we would have had riots today.
Thanks, Ben (and Paula, Randy, and Simon)
I took a loss today which I figured I was due..the scary part is that none of my co-workers cared!..
I meant that no one cared that we’re entering a recession and alot of people still believe that the government is still going to bail them out.
I really hope the government doesn’t bail anyone out. They are, but I wish they wouldn’t, because those of us who were smart and saved have to see ourselves robbed by the inflation that is caused byt he fed slashing prices. Way to bail out those who bought things they couldn’t afford in the first place, why should my tax money go to that? That’s what I want to know, I could use that money myself.
It’s called a panic sell off capitulation the kind we were looking for in 2000 but never got. Classic high volume sell off. Classic. 2 years from now dow 16000 easily. Buy a house people nobody will ring the bell at the bottom. Rates are going to be at 2005 target levels in a matter of this year and next. look at the charts. THIS IS THE ASSET BOTTOM OF YOUR LAME LIVES. Look when others leap.