Why is the market still so low?

Quote from stock_trad3r:

it has been 3.5 months since the October 10th plunge an the major indexes keep edging lower. There has been no meaningful rebound since then. I figured by now we'd see the dow at 10,000 by now. but this kinda sucks. 

People should consider not selling anymore.
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Too bad there is $1,400 Trillion of wealth left to evaporate and will probably only be about $200 Trillion at current values left when all is said and done.

The deflationary credit contraction begins

http://elitetrader.com/vb/showthread.php?s=&threadid=149998
 
Quote from BSAM:

I'm surprised we're not at 6000. We are in financial chaos.
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We would be if were not for the Fed and the political hacks. And it would be the buying opportunity of a lifetime, and we would be working our way up and out by now.

To much interference from the micro managers in government.
 
I posted the graph for a reason. We are at the same pace as the Great Depression. We are at the same levels in the market, in terms of percentage drop, as the GD. In another year or so is when the real pain begins.

Ever watch the Cinderella Man?
 
Quote from stock_trad3r:

it has been 3.5 months since the October 10th plunge an the major indexes keep edging lower. There has been no meaningful rebound since then. I figured by now we'd see the dow at 10,000 by now. but this kinda sucks. 

People should consider not selling anymore.
More...

If you want the market to go up, start a new thread titled, "I give up...I'm going short here". The day will mark the low in US equity.
 
"Why is the market still so low?"

Bear market still in place, Madoff and other corruption fears, fear of potential gov intervention or bankruptcies wiping out shareholder values in financials and others, fear of latest earnings, etc...

In a word...FEAR

Good time to be a trader.
 
The U.S. economy is the global economic leader and driver for other economies around the world.
Consumer spending accounts for 70% of U.S. GDP.
The wealth effect of average americans has been destroyed....consumers are facing substantially declining home prices, 401ks, stock portfolio's, and increasing unemployment. Layoff are escalating and unemplyment is going to double digits in my humble opinion. Various sectors of the economy are dead, Retail is DEAD, housing is DEAD, Car sales DEAD. etc etc etc. And the Big 3 are teetering on bankruptcy and unlikely to rebound without further gov assistance. COunties, Cities towns and STATES are bankrupt and don't have money to meet basic state emplyee payrolls.
Add to that a global financial crisis that is ongoing and the markets will likely face many more bank failures and lehman/bear collapses maybe even Citi or BOA. The credit crisis is ongoing and banks are hesitant to lend and are hoarding survival cash. You simply can't have economic growth under these financial conditions of tight money.
Earnings are falling and dividends are in jeopardy. Markets can't turn to bull in the face of this. AND something has to lead us out, Perhaps green energy?????
What did I leave out? I probably forgot something. ANYWAY Things are going to get worse before they get better.
The econ advisors to POTUS know this and he has warned americans. Believe him he is being straight with the people.
The market will see some bear rallies but we will test those lows. 100% guaranteed. No bear market like this will rebound without testing those lows. All the economics of the situation indicate we will have to. Whether they hold I am doubtful. If they don't no one knows where the bottom will be. Perhaps 02-03 bear recession lows?
I don't see us coming out of this in late 09. The support we have been having and the recent bear rally were based on the out come of an economic rebound in late 09. The market has to figure that there will be no 09 economic or earnings rebound and that will trigger the test and new lows.
 
http://www.cnbc.com/id/28818635

also the gov't can not keep propping up everyone. There are simply way too many problems for all to be bailed out. Now Fannie/Freddie want more money. You can be damn sure Ford, GM, Chrysler are going to be crying for more cash. Banks like BOA, CITI are going to be crying for help. Homeowner bailouts.

The gov't is trying to prevent the inevitable.
all this needs to be washed out. clean house.
But the econ brains know how completely screwed we are.
This is all going to get so ugly only a few realize what is yet to come. Ben & paulson are scared shitless and they are trying their best but ultimately the gov can't prevent the inevitable. They're like the story of the little dutch boy with his finger in the dike trying to prevent the flood. But holes are springing up everywhere.

We are facing unprecedented events and this will surely be THE WORST and LONGEST Recession (depression?) since the Big One.
 
Quote from 1flyfisher:

http://www.cnbc.com/id/28818635

also the gov't can not keep propping up everyone. There are simply way too many problems for all to be bailed out. Now Fannie/Freddie want more money. You can be damn sure Ford, GM, Chrysler are going to be crying for more cash. Banks like BOA, CITI are going to be crying for help. Homeowner bailouts.

The gov't is trying to prevent the inevitable.
all this needs to be washed out. clean house.
But the econ brains know how completely screwed we are.
This is all going to get so ugly only a few realize what is yet to come. Ben & paulson are scared shitless and they are trying their best but ultimately the gov can't prevent the inevitable. They're like the story of the little dutch boy with his finger in the dike trying to prevent the flood. But holes are springing up everywhere.

We are facing unprecedented events and this will surely be THE WORST and LONGEST Recession (depression?) since the Big One.
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It's free money with no interest. That's why we can afford to bailout the banks and wallstreet. The key is trying to strengthen investor confidence and keeping the market higher, and that's the purpose of these bailouts and stimulus.
 
Quote from whatthe:

This is one of the biggest crises in history, so logically it would lead to a longer than average bear market with greater than average percentage decline.
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Since when are markets rational and "logical", let alone have a direct 1:1 correlation with the Economy?
 
I can only assume:

They cleared out the Margins and the Liars, reset the Market, Cleared out most of the Paper, and now they are waiting to see who can last in the Business.

Any other IDEAS???
 
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