Sell! Sell! Sell!

Yesterday was another freak out on Wall Street with the Dow clocking its ninth worst point loss in history. 519 points down, obliterating the gains from Tuesday.

If you have a spare couple of minutes, turn on CNBC for bit today. You will see 12 people simultaneously screaming about things that are practically incomprehensible. These people are members of what I like to call The Spazzy White Guys in Lower Manhattan. And they'll be accompanied by nonsensical digits packed onto every square inch of the screen.

Ultimately, all of it means nothing. The market is run solely by kneejerk fear and a pack mentality. That's why your 401(k) lost all kinds of value yesterday.

I fear the Spazzy White Guys in Lower Manhattan way more than I fear any common street criminal. They're truly evil.

  • nicole

    Having formerly spent some time as a financial advisor/stockbroker, here’s my 2 cents on your 401k.

    1. If you aren’t within 5-7 years of retirement, leave the money where it is since the market historically recovers within that time frame (or at least within 10 years).

    2. If you are within 5-7 years of retirement, AND you’re heavily invested in volatile segments of the market, you’re screwed,. Your broker/financial adviser should have transitioned you to safer investments before you hit that critical period of time prior to retirement. Ask your advisor/broker for advice.

    Take heart. You can always sue the bastards.

    • IrishGrrrl

      Good advice Nicole! Thank you….I’m staying in the market and taking the long view even though it’s tough some days. I don’t even want to look at my 401K for a few more years. And its too bad more people don’t get this simple and sane advice.

    • jmby

      Thank you for this advice, Nicole. And I’m sure you are NOTHING like the Spazzy White Guys I mentioned above – both back while you were a broker, or now. Wish I’d known you back then; I may not have the poor opinion of stock brokers I now have if I had!

  • dildenusa

    Evil? I don’t know Bob. Sociopathic? You betcha! These people have no empathy whatsoever. The only thing that matters is accumulating more wealth than than anyone else. That’s the “causus belli” and the battleground is the so called financial markets.

    If you really think about it, what are they selling to regular working stiffs like us with 401(k)’s in the financial markets? Blue skies. That’s all. That’s their dirty little secret. While they’re selling us blue skies, they’re picking our pockets clean to add to their pile. And it’s getting piled higher and deeper while us out in middle America are starting to ask the hard questions.

    What is the hard question the tea partiers are asking? Where’s my lawn chair and my tricornered hat?

  • missliberties

    The war is being waged on the economic front. A lot of the stuff we see going on is based on rumor, fear, and machine trading…., which has nothing to do with the economy.

    Isn’t it clear that people are now using ‘the economy’ as a battle ground to win their ideological agenda?

    Important to keep a cool head about what is going on in the markets. Half of it is just gossip gossip. The other half is that S&P and other entities are trying to use debt (that they created) to make the point that social safety nets, ie: European style economies, are a drag on capitalism.

    It is important for all of us to understand what is going on economically and make the sound and convincing argument that social safety nets grease the skids of capitalism.

    Government spending does create jobs in the private market. Yes it does and YES WE CAN create an infrastructure bank, which will lift our economy out of the doldrums.

  • Dave Krebs

    “The Spazzy White Guys in Lower Manhattan”

    Perfect name, Bob.

    • missliberties

      The first rule of war: Known your enemy.

    • jmby

      You said it, Bob. I dated one of those Spazzy White Guys for three years in the late 90’s until I came back to my senses and realized he was, indeed, irretrievably evil. Also astoundingly ignorant, unempathetic and scarily incurious. As a friend said upon hearing we broke up, “I was afraid for your intellectual life if you’d stayed with him.” The old boyfriend was pretty typical of the other Spazzies I met during that time – and these idiots still hold all our futures in their ham fists.

  • superlipz92

    Unfortunately, even the knee-jerk fear has been relegated to puter algorithms. Fear + AI = WTF