Quote:
Originally Posted by RIJIMMY
hmmm,
if there is a stiff breeze near an oil well, the stock market tanks because of the risk of rising oil prices, someone chokes on a McDonalds burger and the market tanks........so tell me why the market seems pretty stable when we are days away from a catastrpohic default? Serioulsy?
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Because most of the market is reactionary. If the default happens (which doesn't really matter if it does or not), the market will immediately tank due to all the propaganda in the news and by politicians about how terrible it is that the US surpassed an arbitrary number on how much it can borrow.
When that day happens, I'd bet the market falls 3-5% the day of the default and another few percent when the credit rating (which is should be decreased anyway) is reduced, recover a few points as people buy in on bargain priced stocks and then sit stagnant in a "150pts up, 150pts down" day to day trading like the market has been doing for a few months now.
I'll tell you though, anyone with some liquid cash on-hand should dump as much as they reasonable can afford when the Dow gets down near 11,000.