explain this to me

[isleseeya]

The link shows stockmarket ( Dow Jones ) graph covering its performance last 10 years

 

from Feb 2002 through what appears December 2004 , Dow never cracked 10,000 pts

 

It was as low as 7500 in fall of 2002

 

i dont remember any panic at the time

 

Now i understand the drop is more dramatic now , especially in lieu of some of the massive companies that declared bankruptcy , however the Dow was at approximately 9400 in Oct 1998 ...it is over 9200 as it stands now in October of 2008 ...10 years and we are close to what we were while imbetween there was major high and lows

 

what makes this situation and fact we are under 10000 now so much worse ? i am far from versed in the stock market so i look to fellow huddlers for information

 

Edited October 9, 2008 by isleseeya

[dmarc117]

that was a pop in the internet bubble. this is a systematic failure in the world banking system.

[isleseeya]

Confidence.

 

We were coming off a long period of growth. Everyone assumed that the problem was temporary. While the market had nice growth over the past few years, no one was really that comfortable.

 

 

In addition to the lack of confidence, there are so many more economic issues now than in 2001-2002. Back then, the biggest issues was the tech bubble popping.

 

 

that was a pop in the internet bubble. this is a systematic failure in the world banking system.

 

Thanks ...this clearly makes this much more precarious

[wiegie]

The link shows stockmarket ( Dow Jones ) graph covering its performance last 10 years

 

from Feb 2002 through what appears December 2004 , Dow never cracked 10,000 pts

 

It was as low as 7500 in fall of 2002

 

i dont remember any panic at the time

 

Now i understand the drop is more dramatic now , especially in lieu of some of the massive companies that declared bankruptcy , however the Dow was at approximately 9400 in Oct 1998 ...it is over 9200 as it stands now in October of 2008 ...10 years and we are close to what we were while imbetween there was major high and lows

 

what makes this situation and fact we are under 10000 now so much worse ? i am far from versed in the stock market so i look to fellow huddlers for information

 

Muck and others can correct me where I am wrong. The drop in 2002 was in no small part due to investors not really trusting stocks in the wake of the Enron and Worldcom scandals, but there was no real fear that what was happening in the stock market was going to spill over into the real economy (and cause GDP to go down or unemployment to go up).

 

Right now, there is a significant concern that problems in the financial system are indeed going to spill over into the real economy because firms aren't going to be able to obtain the funds they need/want to maintain their operations.

Edited October 9, 2008 by wiegie

[dmarc117]

a year ago, today the market was at its all time high around 14000ish

 

52wk Range: 9,042.97 - 14,280.00

Edited October 9, 2008 by dmarc117

[dmarc117]

cnbc just said that in iceland, the debt per person is approx 160k lbs. PER PERSON!!!!!

 

no wonder they could only get russian help.

Edited October 9, 2008 by dmarc117

[muck]

Weeg is right.