GM declares bankruptcy and stocks go up?

I thought that this write up was a very interesting read on just how far apart Wall Street and Main Street are.

Dr. Housing Bubble wrote:One of the biggest bankruptcies in history occurred on June 1st yet you would not know this by looking at the stock market. In fact, the Dow Jones Industrial Average (DJIA) shot up by 220 points. If we look at total assets, this is the fourth largest bankruptcy in history. The Dow is made up of 30 companies that show a supposedly wide cross section of the American economy. The company that filed for bankruptcy was General Motors and was actually one of the 30 components. A company that dates back to 1908 and survived the Great Depression. So how can it be that a company that employs 250,000 filing for bankruptcy is actually good for the stock market and makes the DJIA rally so strongly? The easy answer is the stock market no longer reflects the economic reality on main street.

Full article is here: Dr Housing Bubble - Stock Market Disonance

That is so true.... sad but true.

Sarge that is an incredible article. I love it when you post links to that guy. I always forget about his website, but it's interesting reading.

Makes you wonder where you should put your retirement funds..... That is if you have any left....

Put them under your mattress, they'll get more interest there 😀

Atomm wrote:

You got a lot of love for those bonuses. How much did you get? 😀

Not that I agree with the bonuses, but this graphic help to put it in prespective. I don't know anything about this website or its politics, but it was the first hit on google image search (I know I saw this graphic before, actually I saw a better one I can't find again.)

http://www.designverb.com/2008/01/04/how-3...lars-look-like/

Doc, It's not so much the bonuses. I just get frustrated that people focus on things that in the grand scheme of things are unimportant. For me, the point of that cartoon is we are not focusing on the real travesty here, the Trillions of dollars that are being thrown into the wind.

http://www.usatoday.com/news/washington/20...5-28-debt_N.htm

This is really scary.... Each household now owes $546,668 towards the national debt.

Atomm wrote:Doc, It's not so much the bonuses. I just get frustrated that people focus on things that in the grand scheme of things are unimportant. For me, the point of that cartoon is we are not focusing on the real travesty here, the Trillions of dollars that are being thrown into the wind.

http://www.usatoday.com/news/washington/20...5-28-debt_N.htm

This is really scary.... Each household now owes $546,668 towards the national debt.

Good thing I live in an apartment 😉

By census definition, an apartment is considered a household. ;-)

Bubbaspanky wrote:By census definition, an apartment is considered a household. ;-)

Damn! Iffin' I learned readin' and writin', I'd know all them there tricky things like compound words not meaning exactly the same thing as half the word means, and I'd know the difference between a billion and a million (wrtitten out in words, and with all the zeroes written out), and maybe even between .02 dollars and .02 cents, too. I guess I better check the couch cushions for some spare change. Is $546,668 a squillion, or bazillion?

That's gotta be, like, a whole shitload of dimes. . .

Be careful. You may owe that spare change plus interest. Should come to just over $546,668.

😛

The stock market is one big giant scheme just to take all your money and use it to pay someone just to sit on there bum and speculate about something they don't even understand.

several times i have wondered that exact thing.

This is a pretty cool graphic about recent bankruptcies. It amazes me how the one's from a more than a few years ago that seemed "huge" (Enron for instance) are small potatoes compared to the financial industry stuff that has been happening over the last couple of years.

http://www.good.is/post/transparency-the-l...ies-in-history/