A Night Unremembered
13 years ago
Tuesday, August 9, 2011
Ouch!
I lost a lot more yesterday than the Dow did. Painful, certainly, but something I should expect based on how my investments are allocated. I firmly believe I will get it back in the next few months. And, if not, it won't be much of a loss overall since I brought these equities for the income they generate in dividends and I have already received more than I lost in yesterday's crash.
I am hoping you all were not personally hurt by the crash. Or, if you were hurt, not severely.
What happened yesterday was an outbreak of fear and trembling. The downgrading of our credit rating was not severe but it was unprecedented in history. It was a first for the U.S. We went through 2 World Wars and a Great Depression without losing that AAA rating.
There's talk that the Tea Party is to be blamed. In reality, there aren't enough actual Tea Party members in Congress to do that. There are only 54 members of the Tea Party Caucus and many of these are not actually part of the Tea Party, just in agreement with them. Those many are incumbent members of Congress who had been there prior to the elections of 2010 and also prior to the start up of the Tea Party. You see, the Tea Party is a relatively new group of organizations, starting up after the 2008 elections. It started in 2009.
The charge is that they impeded compromise. I suppose they did. They opposed tax increases and pushed for spending cuts. And they stuck to their principles, the ones for which they were elected. It seems to me that there was plenty of factions doing much the same. For instance, the Congressional Black Caucus and most of the Democratic Party, as well as the administration.
But let's look forward for a moment. How will the stock market behave over the next year? It will be unstable until some governmental stability is achieved. And then, depending on how that stability looks, it may not stabilize then. The worry now (I almost typed "fear" instead of "worry") is that we'll enter a "bear" market which will mean a downward spiral of stock prices until something big turns it around.
Let's hope that doesn't happen, shall we?
Subscribe to:
Post Comments (Atom)
4 comments:
I don't blame the Tea Party or any particular party, just the fact that we seem to becoming more and more rigid and incapable of moving together unless we each get our own way 100%. Yes, I got hurt a bit although I had made some defensive moves prior to the crash - and am looking forward to easing back in when the market begins to recover. I don't have much faith in any politicians. No matter how much integrity they have going in, to stay in the game they have to be popular enough with whatever group got them there. Consequently they all become the essence of Group Think.
Where's my !@#$#@ing comment?>!!!!
Oh, sure. Now it shows.
Just to let you know, Douglas, I do pop by here but can rarely comment. Disqus hates me...
Pearl
Disqus loves you, Pearl, as do we all. It's just acting up lately, I think. It used to let me reply to comments easily through email and now it doesn't. I may have to go back to Blogger's system ...sigh...
Post a Comment