Confronting Barney and the Stock Market Crash of 2008

Well, some of you may remember an email I sent back in the beginning of July regarding the huge selloff that occurred in the financial stocks then.  My predictions have come true.  I can only hope tomorrow being Friday or a few days later don't go down in the history books as a Black Friday or Black Monday.  It is October afterall.

Here's what I said in July if you didn't get the email.  Scary, isn't it to see in hindsight how dead on these ideas have proven to be.  Some have asked me to be a financial advisor, if not full time at least part time.  Maybe I should.

July 11th Email:

Well, some have been predicting a crash in the markets for some time, and while it is not a broad based crash (yet), the plunge in the Financial sector that has occurred this week, more especially today, makes this a Black Friday in my opinion.

 

Fannie Mae and Freddy Mac, the to goliath mortgage finance companies that are backed by the government, crashed 39% and 45% respectively today, bringing the financial markets to their knees and bringing the Dow to its lowest intraday point so far in 2 years - below 11,000 points.

 

And it's only July.

 

In some ways I'm nervous to see what happens in September and October, which are known to be stormy to downright terrible months for the markets even in stellar years.  The economy is shaping up to be a "perfect storm" that I don't think either Presidential Candidate has any qualifications to resolve.  We could be in for quite a ride, and unfortunately, a lot of losses.

 

Here are some articles that should be a wakeup call.  Now is a good time to save money (in cash accounts - not securities), and to move your current stock investments into dividend yielding stocks and bonds.

 

I'm not sure what this means for the housing market as a whole, or what it means for people who want to get into a home, but I wouldn't get into a mortgage right now without qualifying for FHA, which was made during the depression years to get people into homes, so an FHA insured loan should be able to ride out any stormyness.

On Thu, Oct 9, 2008 at 3:35 PM, Nevin Limburg <Nevin.Limburg@wvc-ut.gov> wrote:

I really like Bill because he doesn't hold back and he speaks and writes the minds and thoughts of average Americans like me.  I AM ANGRY.  Today, again, the stock market fell another 600 points and is now below 9,000 on the Dow.  I can only hope that within the next five years my 401K and 457 can recover and rebound.  B Frank is a very liberal jerk from the very beginning of his time in Congress.  He should be replaced immediately, reprimanded, and thrown out with this election.  Yet you know it won't happen.  Thank goodness there are still the Bill O'Reilly's of the world who can speak the truth and help get it out.  So who's listening?

I'M MAD AND LET'S THROW THE BUMS OUT!

Nevin

Nevin Limburg, CEcD
Business Development Manager
Economic Development / Redevelopment Agency
West Valley City, Utah
Office:  801-963-3322
cell: 801-232-0264
Nevin.Limburg@wvc-ut.gov"We should be too big to take offense, and too noble to give it"
Abraham Lincoln.



>>> "Limburg, Garth" <Garth.Limburg@slcgov.com> 10/9/2008 2:15 PM >>>

Confronting Barney



By Bill O'Reilly for BillOReilly.com
Thursday, Oct 09, 2008







One of the things lacking in the second presidential debate this week
was anger. With the economy brutalizing millions of Americans, I
expected both candidates to be furious that, once again, the government
failed to warn us about impending disaster. Before the 9/11 attack few
Americans had ever heard of al Qaeda even though Presidents Clinton and
Bush certainly knew of the growing danger the group posed. Now, there's
compelling evidence that the feds stonewalled the present economic
chaos. So why aren't McCain and Obama livid about it?

It is not hard to understand why Americans who work hard, obey the law
and believe in the capitalistic system, are sick to their stomachs when
they lose investment money through no fault of their own. Corrupt Wall
Street greed heads and stupid, lazy federal overseers have combined to
deliver one of the most punishing blows to regular folks in U.S.
history.

So, again, why aren't Obama and McCain pounding the table?

Recently, I interviewed the Chairman of the House Finance Committee
Barney Frank and it was quite a shootout. According to The Wall Street
Journal, Investors Business Daily and my own research, Frank presided
over the collapse of Fannie Mae and Freddie Mac with a casual disdain
for the American investor.

In fact, last July, Frank went on television and said this:

"Fannie and Freddie are fundamentally sound, they are not in danger of
going under. They're not the best investments these days from the
long-term standpoint going back. I think they are in good shape going
forward."

Sure. Less than three months later Fannie Mae and Freddie Mac collapsed
and even though he was in charge, Frank says he is not at fault. Of
course, he blames Republicans.

After hearing that, I let Frank have it calling him a coward for not
admitting any culpability. He then called me stupid. You get the
picture.

Now, I remain furious with Barney Frank. To me, he epitomizes everything
that is wrong with the federal government. He was incompetent in his
oversight of the federal mortgage agencies and then when they folded,
causing a chain reaction financial disaster for honest investors, he
blamed other people.

Unacceptable and every elected official in Washington should feel the
same way. This is not some political theory here, real people are
getting badly hurt, lives are being dramatically affected. Those
responsible need to be held to account.

But in the land of conventional politics anyone showing anger and
passion is deemed to be "out of control." You must appear calm and cool
in the face of any storm. Therefore, Obama and McCain showed little
emotion about the terrible economic situation.

You know sometimes cool doesn't cut it, fellas. There is a time for
anger.

And that time is now.





##

--
Tijs Limburg
Chairman and CTO of DMX - Digital Media eXceleron, Inc.
Get eXcited!
www.dmxed.com

Blogs:
http://phystrings.blogspot.com/
http://getoutofthedark.blogspot.com/

The "Don't Tread on Me" Flag: The First Navy Jack is enjoying renewed popularity these days thanks to an order from the Secretary of the Navy that directs all U.S. Navy ships to fly the First Navy Jack for the duration of the War on Terrorism.

--
Tijs Limburg
Chairman and CTO of DMX - Digital Media eXceleron, Inc.
Get eXcited!
www.dmxed.com

Blogs:
http://phystrings.blogspot.com/
http://getoutofthedark.blogspot.com/

The "Don't Tread on Me" Flag: The First Navy Jack is enjoying renewed popularity these days thanks to an order from the Secretary of the Navy that directs all U.S. Navy ships to fly the First Navy Jack for the duration of the War on Terrorism.