Is a Double Dip Recession Looming?: Tips for Surviving the Next One

[Alan Ray, RLA]

it is time to buy…stocks are on sale today!

[Jason T. Radice]

I’d hold off…its not over yet.

 

[Thomas J. Johnson]

I hope you didn’t buy yet… the S&P just downgraded the US’s credit worthiness from AAA to AA+. Monday morning is going to be interesting…

My guess-timate: Monday the market takes a dive followed by turbulence (while the gov’t scrambles to cover its butt and reassure people). It will then stabilize but not return to levels prior to last week… things are going to stay down until our leaders come up with a real plan to correct our budget issues (i.e. decrease spending, start paying off debt and create an environment in which businesses can be created and thrive). Anything less will not instill confidence in the people that matter…

* I am not an economist or financial adviser. I am not giving anyone advice. Do not do anything I say. Just thinking out loud about recent events as related to this thread…

[Heather Smith]

Past downgrading of credit worthiness in other countries actually DOES indicate this is a good time to buy in some instances. Buy LOW for long term investment. I have no extra cash…haha.

[Thomas J. Johnson]

Right, but you want to buy after the downgrade, not before… if you bought on Friday, there is a good chance it’s going to go down further on Monday…

I don’t have any money either but it’s fun to follow and pretend “what if…”

 

[Jason T. Radice]

And S&P’s stated reasons are interesting.

1. They do not trust the current political structure’s ability to do anything or enough of anything to stabilize the debt. We’ll have to wait until 2012 to fix that (if either party gains clear majorities).

 

2. They were looking for SUBSTANTIAL and near immediate reduction in spending, to the tune of about $4 trillion, as the original budgets had in place (that number was chosen for a reason). But the compromise that passed and was signed was a bit over 2 Trillion, and over a period of time. They did not cut enough and we’ll have to keep borrowing to avoid bankruptcy.

 

This is a long way from over, plus we’ll have to see what happens in Europe with Italy and Spain. S&P did not rule out cutting our rating again.

[mauiBob]

Markets open in 3 hours. You buy. It goes up on Monday. Best advice about the market: “Always do the opposite of what most people think.” The buy low and sell high theory is misguided. Nobody knows when the low actually occur. In March 2009, it went very low and many were still saying it would go lower, but it never did drop below 6500. Many missed the buy opportunity. That’s when I bought Las Vegas Sands, Ford, Sirius, Vonage and Adobe. At 30 cents, $1 or $2 bucks…how much lower can you go?!

Do the opposite. That’s how the money rolls…

(What’s wrong with the Land8 Member profile photos? It doesn’t change photos anymore.)

[Heather Smith]

We had politicians that WANTED to default…I can’t imagine why investors would be nervous? haha.

[Trace One]

As Jane Hamscher states in Firedoglake, S&P is acting like an arm of the republican party..On Friday, after the two trillion mistake was found in their  calculations of our debt, they simply changed the reasons for the rating downgrade.

This is the same S&P that took money from bankers in return for high  ratings for the securities based on bundled mortgages, one of the elements that caused the collapse of our economy in 2008. Retirement funds like CalPers that are only allowed to buy triple A were conned, and S&P was rolling in ill-gotten gains..Why they still exist, I have no idea..Actually I have a pretty good idea, after reading Louise Storey and Gretchen Morgensons NYT columns on the lack of prosecutions. AIG is suing S&P for that fraud, since our DOJ was gutted by Bush, so that is some good n ews..It would be nice to see some heads roll.

But why everyone is not running S&P out of town after the devastation they were party to, in 2008, I do not know..It is absurd. It is worse than absurd, it is criminal.

[Trace One]

http://news.firedoglake.com/2011/08/08/sps-history-of-relentless-political-advocacy/

 

S&P insists that reduction in ‘entitlements’ is the only way to go..S&P, you are fired!

[Rob Halpern]

http://www.youtube.com/watch?feature=player_embedded&v=W4hfdaC7eL4

[Trace One]

correction, I have S&P on the brain, AIG is suing B0fA.

[Thomas J. Johnson]

MauiBert – I generally agree with your “do the opposite of what everyone else is doing” but I don’t know why you couldn’t see today’s slide coming from a mile away. It doesn’t take a rocket surgeon to predict that when the US gets downgraded, it’s gonna take the market with it…

Where it goes from here is anybodies guess. I think most people are going to be too confused to be able to put one foot in front of the other, which will make the market weird and unpredictable. If I had to take a stab at it, I’d say the market is going to go down again tomorrow and then vibrate along a plain for a while.

Unfortunately, I don’t think the current administration is interested in fixing the problem. Their still trying to squeeze more blood from this stone and playing the blame game. That mentality isn’t going to get us anywhere. 

They need to restore confidence and give businesses and consumers some room to breath, otherwise this thing is going to continue to slide until we get somebody with a new perspective in office. People want to work, businesses want to do business. It’s time to revisit the principals of laissez faire economics…     

[Heather Smith]

I am curious what you want them to do? Nothing? Well we will now see what that looks like…we aren’t bailing one out again this time. I think we needed more stimulus and so do a lot of economists…that was and is impossible to get through. The idea that this administration is anti-business is a myth evidenced by the massive profits corporations have been raking in. If anything…they should start acting like democrats instead of moderate republicans. It feels like we have an extremely conservative party and a conservative party. There is no balance. What would giving businesses room look like? I hear this argument and it doesn’t hold water. Bailing them out isn’t giving them room? Giving them huge tax breaks? Not enough room? They are hardly being strangled to death. They have far more rights then either you or I have. Do you really want to have government back off more in regulating? Any sort of Wall Street Reforms have been so weakened…they are pretty much useless.

This is much larger than any one administration.

[Heather Smith]

It all seems fishy to me. These are the dudes that gave triple A ratings to mortgage securities. Who is in charge of who here?

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