Investors lose a trillion dollars in one day

[williamtime]

Investors lose a trillion dollars in one day
NEW YORK (CNNMoney) -- Investors lost a trillion dollars in the in the stock market Monday as the debt crisis in Europe, lackluster

economic news and a downgrade to the U.S. credit rating spark fears of a double-dip recession.
The Wilshire 5000 Total Market Index, the broadest index of U.S. stocks, lost 891.93 points, or just over 7%, Monday. This represents a

paper loss for the day of approximately $1.0 trillion.
Monday is the largest percentage drop for the Index since December 1, 2008 when it fell over 9%.
Since July 22, when Republicans abandoned debt negotiations with the White House for the third time that month, the index has lost $2.9

trillion in value.
Cynical investors, which could include any of the millions of Americans with pension plans, mutual funds or other retirement accounts,

might be tempted to blame squabbling politicians in Washington for much of their ill fate. But experts say it's more complicated than

that.U.S. Treasuries are still safe! Sorta
"The downgrade has people spooked, but it's not that big of a deal," said Harry Clark, chief executive of Clark Capitol Management.
Clark said the prospect of Italy or Spain defaulting on their debt, scant consumer spending and concern about the overall economy are

causing the sell off in stocks.
"It's just fear, everything together," he said. "It's not just Washington."
Clark believes the market is way oversold.
"I think it's about had it," he said of the decline. "I'm expecting a big rally out of this."
0:00 / 4:17 S&P: Tax rich to stabilize U.S. rating
Stocks did rally after the last big sell off following the financial crisis of 2008. The Wilshire Index remains 84%, or $6.9 trillion

higher than it was in March 2009. But it's still $4 trillion lower than the market's pre-crisis high in 2007.
Jack Ablin, chief investment officer at Harris Private Bank, also said it's unfair to blame the current crop of politicians.
"This is the culmination of 60 years of have-it-now policies," he said, referring the deficits Washington has been running for so long.

"[The downgrade] would have happened one way or another."
Ablin wasn't quite as upbeat as Clark in predicting the next rally, noting that his bank moved 10% of its $60 billion in assets under

management into cash last week.
"Values are cheap and expectations are low," he said. "But I don't see a catalyst just yet." To top of page

[Clip-Clop]

Only those that didn't see this coming from 10 miles away.

[Riot]

Gee - if only our Social Security funds were privatized in the stock market, like the Republicans want.

[Clip-Clop]

Originally Posted by Riot

Gee - if only our Social Security funds were privatized in the stock market, like the Republicans want.

Losing 10-15% would be far better than losing 100% though, no?

[Riot]

Originally Posted by Clip-Clop

Losing 10-15% would be far better than losing 100% though, no?

We haven't lost anything. We've paid 100% of our social security debt on time, always, and always will. Social Security is fully solvent through 2037, and everyone knows it.

Wall Street has always had lobbyists complaining about Social Security, in an attempt to get it out of the governments hands, and into private hands so they can steal what they can from those billions. Screaming that there isn't a pile of actual physical cash sitting there - and that somehow that is wrong?! - is an old, old scam from the Reagan years.

Peoples private retirement funds have been decimated on Wall Street in the past 10 years. Thank god for Social Security as the government fail safe fallback for them. That's exactly what it's there for.

[joeydb]

Originally Posted by Riot

We haven't lost anything. We've paid 100% of our social security debt on time, always, and always will. Social Security is fully solvent through 2037, and everyone knows it.

That's today. Wait until our creditors do cut us off and then there is no way to pay the "unfunded mandates" (what an oxymoron).

That's apparently what the liberal Democrats want since they won't agree to cut spending - and taxes are already way too high.

[Clip-Clop]

Originally Posted by Riot

We haven't lost anything. We've paid 100% of our social security debt on time, always, and always will. Social Security is fully solvent through 2037, and everyone knows it.

Wall Street has always had lobbyists complaining about Social Security, in an attempt to get it out of the governments hands, and into private hands so they can steal what they can from those billions. Screaming that there isn't a pile of actual physical cash sitting there - and that somehow that is wrong?! - is an old, old scam from the Reagan years.

Peoples private retirement funds have been decimated on Wall Street in the past 10 years. Thank god for Social Security as the government fail safe fallback for them.

I am 36, have paid over 100K in my 20 years of working and paying taxes. Do you think that solvent through 2037 means anything at all to me?
It means I get to continue paying for another 26 years (est 150K) and get nothing for it.
Stop with the 2037 already. Find a new rationale.