Dow Jones down to 8,580 - How does it affect domains?

[shinysign]

I know that this has been talked about on other threads especially recently. But overall, how do you think this news affects domain sales? I have a feeling that when it comes to domains it will affect domainers and end users differently.

 

[Mike]

Hey Mike, if the Obama team by chance reads your post they'll send a plane to Forchheim, Germany to convince you to go to Washington. I hope not. We prefer you here at NamePros :great:

:hehe: thanks
I'm flying back tomorrow, though. Then i'm State side again
In the meantime, while we're talking about the economic misery and Roderick is pretending to be Captain Ahab, the DOW has dropped another 130 today and resides at 7,341.14 - i'm about to start a poll to see where people think the DOW will end before it gets better again.

M.

 

[GILSAN]

DOW is already 200 points down. General Motors shares plunge 22% to $1.56, touching levels not seen in 71 years and putting its market capitalization below $1 billion. Banks are getting clobbered again. Gold has overtaken the $1000 mark and the dollar dropped 2% in relation to the Euro since the opening bell. :zzz: A normal day in the markets.

If the news is really bad on monday then we should have a big rally. I don't think the DOW will go below 7000, at least for a while. Problem is, my predictions are normally wrong. :red:

 

[goodkarmaco]

What puzzles me is Clinton told the media recently he would be doing the bailout too if he was in office today. If it was him he would have started the bailout a year and a half ago he says, WTF? Hes the guy who balanced the budget and he is talking like he is a socialist too?.

 

[Mike]

What puzzles me is Clinton told the media recently he would be doing the bailout too if he was in office today. If it was him he would have started the bailout a year and a half ago he says, WTF? Hes the guy who balanced the budget and he is talking like he is a socialist too?.

I'm reasonably sure that he'd have allocated the funds a bit different, though. He's proven to be effective once, unfortunately, the situation is by far more dire these days and he'll obviously not get another chance to steer the ship.
Undoubtedly, we need a bailout - just not THIS type of bailout.
Personally, i rather relabel what they call bailout to "Donations" - that would be a bit more accurate.

M.

 

[OctaneInv]

Gil and Octane -

Indeed. There are many platforms that have had a considerably better adjusted message and agenda for the USA. Unfortunately, the media DOESN'T let them be heard - it comes down to who's got the deeper pockets and can pay more for air time.
The USA has succumb to be a society of baby food junkies - everything is soft, easy to swallow and is usually spoon fed to us. Thinkers need not apply.

True in many ways. The only thing is some candidates DID have the money, and the media STILL didn't want anything to do with them. While money plays a role, the media still has full control with all money aside, because like you said - thinkers need not apply.

Correct me if i'm wrong on this one as i'm going out on a tangent here; didn't Obama say something about reducing the number of troops in the middle east?! Yet, recent news say we're sending more soldiers there?
Hello double standard! Last i looked, Afghanistan was still in the middle east, just for the case that the political excuses of " ....but, we removed our troops from Iraq!" is going to be presented.

Oh trust me, it will be presented, and people will love to hear and support it. Get ready folks, I've said it before and I'll say it again - Obama was like a cult, it doesn't matter what or why he said, people believed him for one reason or another. Here's to broken promises.

The housing market - a stimulus package that will help both - the home owner in default and the neighbor, who's not in default, by stabilizing the prices! Is that a joke?!
The funds disbursed are certainly going to be used to pay on outstanding payments or home improvement or anything that will help the housing market! Who's the idiot adviser that came up with this?!
Let's look at the simplified psychology of things:
The majority of defunct home owners have bought on interest only or on adjustable rate through a sub prime lender. I wager the thought that the majority of these people knew that they may not be able to sustain the payments.
For role playing purposes, let's look into the inner mechanics of a person that's willing to buy a home with no real financial ability.
Brain to Wallet - " .... but hell, if we foreclose, the only thing i'm out of is the interest payment, which generally is lower than paying rent. Hence, i saved money. If i can make it and carry the house through, great! Just don't come asking for me to pay the principal back, i can't afford that!"
Wallet to Brain - "Indeed, Buddy! Good thinking! It's a win-win situation! We save money for 5 years, then foreclose, which takes another 6 months, then go back to renting. Our credit is shot anyways, might as well do it like that!"
Role play end

Seriously though. The way the American credit rating is handled, is the first mistake. Greedy lenders are the second. Strike three is the government bailing out the people that shouldn't have a home in the first place, while leaving the crooks of sub prime lenders out in general public, while they should all be thrown into a reactivated Alcatraz.

Again, nail on the head. Why the hell would we give these people more money to throw out? They obviously don't know how things work, so give them more gas for the fire? .. Great idea ..

Then you look at Walmart, a corporation that's well known to exploit its employees - at least according to their own workers, including management. Even if you watch MSNBC - the story of Walmart, the CEO didn't have a convincing answer to the allegations of exploitation, health insurance questions, etc.
In short, Walmart caters to what the American public needs the most - sub standard products with low level pricing - just to maximize the savings generated by paying "interest only".
Interestingly enough, in an attempt to capture Europe - Walmart has failed in most parts, as the brand, the mechanics and quality of its products has not found acceptance. Walmart saw itself forced to close 80 stores in Germany alone.

.. Didn't see the MSNBC special .. so, no comment.

Unfortunately, it's extremely easy to continue bitching until i'm blue in the face. I'd much rather present possible solutions, based on the foregoing bitchfest:
Support housing - yes. Disburse funds for home improvement, upon submission of a receipt of work having been completed by a licensed contractor. Two effects: 1, jobs being created. 2, home values increased.

I don't know this will help that much. Would it be nice? Yea. Would it really help create jobs or anything? Doubtful.

Plus, people can't afford cheap houses, let alone "improved" homes.

Finally, you'd need yet another "agency" or group to take care of all of the repairs which means MORE government spending - which means more taxes.

I'm going to have to say no here.

Don't support defaulted home owners: Let the local government collect the home in foreclosure and resell it through licensed realtors after a legit appraisal has been completed.

Yes and no. I definitely don't support the defaulted homeowner, BUT, in the same breath, putting people on the streets won't help either. I say allow for deferred payments, with no penalties. That way, they still owe the money, but have a little more time to pay. Maybe a 6 month period. After that? It's the bench in the park.

Industry: Added taxation for companies purchasing a certain % of their stock from outside of the USA. In an attempt to avoid the taxation being passed on to consumers, as this would be counterproductive, have a consumer price watch established. In a world of barcoding and micro chips, that's the easiest thing to do. Penalize corporations who are passing the added tax, caused by their ludicrous purchasing behavior on to the consumer.
Overregulated? Maybe. However, if we don't have a regulations in place, we just saw where we ended up, right? Corporate greed will have to be regulated and the USA must be put first.

I've argued both sides of this as well. My final conclusion is this: When we were established as a country, with a modified free market economy, we had no thought of outsourcing. Everything was "American". Now, though, I don't believe it's over regulation, so much as it is changing with the times.

Auto industry: Let them fail. Yes, they are American icons. However, icons have the notion to come out ahead and weather the storm - it's the make up of an icon,...a hero. If our auto industry and its over inflated unions are the culprits to their own success - let them fail. The damages are smaller than their continued requests for more bail out cash.

That's the key - Unions. They had a place once, but with the additional government agencies we've got today they aren't needed.

The other thing is that the companies don't need to fail, but if they keep on doing what they're doing, they deserve to.

Verdict: No government money for the Autos.

Banks: Let them fail. Same rules as above apply, with the added effect that CEOs need to be audited by a panel and incarcerated if found in violation of simply business laws and ethics.
The mortgages, loans and other outstanding debt - this is where the bail out cash comes in - let the government buy them for pennies on the dollar and then auction them off to the remaining banks. The profits can/should be utilized for tax breaks.

Me likey.

Salaries: CEOs and others in "public functions": Small salary and commission based success payments at the END of the year. Golden parachutes - illegal. Cashing in on stocks disbursed to them during their tenure - possible, but with added taxation, much like the IRS penalty for withdrawing too early from your 401k.

Me no likey. This isn't the government's job. The CEO's get what they get. The board can remove anyone they don't see fit for the job, and until they make a move, the same shit's going to happen. Again, this is not the government's job.

Oil and Gas vs. natural resources: Open the currently protected areas for drilling. However, drilling will have to change to become more eco-friendly. As counterargumentative as this may sound, it's possible.
Disburse higher incentives for naturally collected energy, tidal energy, solar and wind. Change city zoning laws to permit "home based wind generators" in an attempt to reduce the carbon footprint, energy costs and improve efficiency of each home.

Perfect.

 

[WGS_Thunder]

Looks like Obie One's speech last night didn't help the markets today.

 

[goodkarmaco]

His plans to create out of thin air (more inflation coming) 750 billion for the bailout and his plan to balance the budget by the end of his term does not fit reality. Scared money is looking for security, not lunacy.

 

[RogueWriter]

What puzzles me is Clinton told the media recently he would be doing the bailout too if he was in office today. If it was him he would have started the bailout a year and a half ago he says, WTF? Hes the guy who balanced the budget and he is talking like he is a socialist too?.

Republicans in congress balanced the budget, he didn't have a whole lot of choice in the matter. Which is as it should be - one party has to compromise with the other, instead of what we will havew for the next four years, trillions of dollars tossed up for a land grab amongst liberal democrats.

 

[WGS_Thunder]

one party has to compromise with the other

I've come to the sad conclusion that our 2 party system is smoke and mirrors. They are all in it together and our so called representatives do NOT represent the American people.

 

[RogueWriter]

The current batch of rascals sure look like a bunch of greedy bas----- don't they? The bill passing today has, what did they say, 8,000 earmarks on it, 40% of which were from republicans? Just shameful. I think, actually, that this recession was exploited by our leaders as a way to push through legislation that normally could not stand the light of day.

 

[GILSAN]

Politics and Politicians. They just get worse and more untrustworthy all the time. How do we get rid of this virus?

 

[Mike]

Politics and Politicians. They just get worse and more untrustworthy all the time. How do we get rid of this virus?

Vote for someone else? <- this is a pipe dream at best, though.

Politics, much like everything else is determined by money. Not because the most money is spent on the best strategy and/or representation for the people, but on the campaign trail.
Back at the Kerry / Bush race, they spent a combined 1 Billion dollars through their campaigns. That's lunacy! The ones happy about this? The media.
The problem, every other candidate, that doesn't kiss the corporate ass, is left way in the dust.
Voting for "the other guys", the ones with the better agenda is NOT a mainstream solution. Look at our political make up, it's all about mainstream, man has forgotten to think autonomously. The herd mentality is what's killing us.

Onwards to the one of the many roots of the problem. The real estate fiasco. What happened?! Here's my interpretation to some of it:

1, Developers by land - supported by loans
2, land comes with provisions, one of them being that they HAVE to build within a certain time frame or get penalized - the REAL culprit!
3, they have to start building, may the building remain empty or not doesn't matter. construction is bankrolled by lenders
4, the empty building doesn't return any cash flow - the lender becomes worried and
5, offers sub prime financing JUST to cover their interest rates, principal doesn't matter at this point.
6, it all comes crashing down when builders wisen up and slow down on construction -> interest payments can no longer be made

The winners: Local government as their real estate tax volume has dramatically increased through built upon land - government demands are at the very root of the problem.

The losers:
1, Construction companies as they can no longer support their staff, seeing that building has slowed down dramatically
2, the laborer that suddenly is out of a job and cannot make their payments, supported by the lunacy of carelessness to just wanting to have a house without the necessary financial backing
3, the local infrastructure as jobs disappear and the local combined gross revenue starts to go down the toilet
...and many more

the winners turned losers:
1, the state government. what came in through higher real estate tax volume, is now being spent in unemployment benefits
1.5, the feds. where they had a glory ride, they're now faced with "hard decisions". Come to think of it, has any ONE of our glorified politicians volunteered for a salary cut/limitation yet?!
2, the banks. what first was theirs for the taking has now lead to insolvency through complete lack of business vision

now, if you add a war that costs billions of dollars per month, reparation payments to other countries, the continuous support of producing outside the USA, a horrible immigration policy, exploding health care costs and many other things, is it any wonder that we're in the shape we're in?

M.

 

[WGS_Thunder]

Just wanted you to know, that since Obama has been elected, and the panic has subsided, business is getting better. I suppose the first few days of the recent downfall was the time it took for the message to catch up to the rest of the world,

Obama Won, the stock market can fluctuate as unpredictably as usualy.

I know there are people out there who consider themselves VERY SMART and VERRRRRRY EDUCATED, I would like to take the 0portunity to tell those who oppose my thoughts, YOU LOST THE ELECTION, STOP PUSHING THE DOOMSDAY BUTTON!!!

Great, now that you received the message, please leave those who happen upon this place to move along without fear.

I Don't believe you!!! You know who you are.

We all lost the election. Obama and his administration are compounding the problems. Why is the market down about 30 % since Obama won? We are so screwed.

 

[CrazyTech]

Agreed, if you watch the markets, they fall when Obama's key pieces of legislation have passed or there is big news with them. I'm certainly not blaming the whole situation on Obama, but the market quite obviously feels what he's doing is not going to help. Like it or not, when the big boys go down on the various markets, we go down.

This is exactly what I knew would happen all along. Unfortunately, an American politician is an American politician regardless of party. However, the problem is not just limited to American politicians. Its the American people, it's systemic. All of us are at fault for various reasons and it starts with playing the part of a sheep and putting these typical politicians and crooks into office in the first place.

 

[Mike]

The DOW is now at the lowest since April 1997 @ 6,763.29

We're loosing jobs as if they're going out of style, unemployment benefits have been increased from one extension to two, enabling many to draw benefits for 10mths+, the job market has clearly shifted to be an employers market, where prospective employees undercut one another just to land the job.
It's a bad situation and there's no end in sight, especially when the likes of AIG already have their hands open for more Billions of support cash.

Not sure what else there is to say. :td:

M.

 

[AndyR]

Please take out class actions in the states against all these bank bosses over here in the UK where we do not have that privilege. Sue their a*ses.

andy

 

[Mike]

Please take out class actions in the states against all these bank bosses over here in the UK where we do not have that privilege. Sue their a*ses.

andy

Love the idea! However, try suing the government and the financial backbone (the banks) of the USA - let's see how fast one ends up 6ft under, suddenly disappears, etc.
At the same time, a blanket lawsuit for all the ones that caused the mess in the first place, would be just the American way, wouldn't it?

M.

 

[goodkarmaco]

Treasury has no money!

Why is it Obama likes to say we will use the assets of the Federal government to help the downturn?. Until it is common knowledge the government now has no assets we will continure to watch this horror proceed.

The day Americans demand the US money to be backed by assets that are real with perceived value is when we can start healing ourselves. Then true markets will dictate the economy and no failed dinasaur will be allowed to live in Zombie land with tax payers money.

Any and every bailout is only diluting the worth of the dollars already in the system. Obama can say he is spending 750 billion. That is just a lie as the treasury is in debt over 10 trillion dollars. Making money now is debt that can never be repaid. He is really only doing harm to our economy.

The world is getting wise and soon the downturn will accelerate as other nations start dumping t- bills.

 

[WGS_Thunder]

The world is getting wise and soon the downturn will accelerate as other nations start dumping t- bills.

I have read our new administration has convinced China to keep buying our debt for now. I also understand we are offering them eminent domain in case we default on payment. I can't find written confirmation of this but will post if and when I do.

 

[GILSAN]

CitiGroup stock is now a penny stock and today was trading at 97 cents, it's lowest ever. That's pretty amazing when you consider that stock hit a high of $57 a share on Dec. 18, 2006.

Everything is going down the tubes. How on earth is Obama & Co going to reduce the deficit, when he and his advisers are getting the US into more debt? Surelly he's going to do it by increasing taxes, such as gasoline taxes, like the European countries love doing.

 

[WGS_Thunder]

Gilsan I find it unfathomable that so many people in the new administration are so seemingly stupid. Of course there is the possible this is being done on purpose. JMO

 

[RogueWriter]

Wow, it almost makes you wish we had elected someone with experience, doesn't it?

:p

 

[GILSAN]

Gilsan I find it unfathomable that so many people in the new administration are so seemingly stupid. Of course there is the possible this is being done on purpose. JMO

You have a good point there. Who would have imagined this crisis a year and a half ago, with banks and so many firms reporting (false?) fantastic quarterly profits. Now the oppsosite is happening and they are all falling like a deck of cards.

And yet this administration has a lot of experts? from the Clinton era which aparently did a good job with the US economy. Or was that all just a lot of manipulated numbers to make all the sheeple believe that everything was just fine, so they could just go ahead and spend, spend, spend.

The world and especially the US is going to have to change and start reducing it's spending habits urgently. I don't see how China will to carry on buying US debt indefinately. How will the US repay China and other countries for their massive foreign debt? I can see one thing coming from Obama & Co. and that's raising various types of taxes.

Maybe that was the CHANGE he was talking about.

The speed and size of this crisis is very bewildering and frightening to me. I hope this downward spiral of bad news ends soon.

 

[Domainace]

Why is it Obama likes to say we will use the assets of the Federal government to help the downturn?. Until it is common knowledge the government now has no assets we will continure to watch this horror proceed.

Well, I think he means you, me and our kids and grandkids. We are now the governments assets.

 

[Mike]

...and the DOW dropped to 6,594.44 (-281.40)

I wonder where the bottom is ... not mathematically

M.