Barackalypse Now .. Dow skids $600 the day after AA+

iVillage Member
Registered: 02-05-2011
Barackalypse Now .. Dow skids $600 the day after AA+
15
Mon, 08-08-2011 - 5:14pm

Our President may wish to read a few books about economics. Books not written by Harvard professors who have never managed in the private sector. His destruction of the private sector is well under way, in so doing, he will destroy our ability to provide basic government entitlements. The hostility of the Obama administration to business seems worse than any I can recall.

This is the recession that never ended. Visiting shadowstats indicates we are in worse shape than any time since FDR, under Obama. Can we afford to come out of a second Obama term as a B rated company (rougly junk status)?

The news story of todays wealth destruction is here - http://www.cnbc.com/id/44058141

Stocks took a sharp nosedive in another choppy day Monday to finish at session lows as investors fled from risky assets following S&P's downgrade of U.S.'s credit rating last week in addition to ongoing economic jitters.

The Dow Jones Industrial Average plunged 634.76 points, or 5.55 percent, to finish at 10,809.85, well below the psychologically-significant 11,000 mark. The move marks the blue-chip index's biggest point and percent drop since Dec. 1, 2008.

BofA [BAC 6.51 -1.66 (-20.32%) ] and Alcoa [AA 11.33 -1.46 (-11.42%) ] were the top laggards on the index.

The S&P 500 plummeted 79.92 points, or 6.66 percent, to close at 1,119.46, its lowest close since Sept. 10, 2010.

Nasdaq sank 174.72 points, or 6.90 percent, to end at 2,357.69, its lowest close since October 4, 2010.

August is already on track to be the worst month for the S&P and Nasdaq since Oct. 2008.

The CBOE Volatility Index, widely considered the best gauge of fear in the market, spiked above 40 to touch its highest level since Mar. 2009.

All 10 S&P sectors ended lower, led by banks, energy and materials. Financials have plunged more than 20 percent this year.

Volume was very heavy with the consolidated tape of the NYSE at 9.29 billion shares, while 2.54 billion shares changed hands on the floor.

“Once we took out Friday’s lows, it was like a trapdoor opened,” Art Cashin, director of floor operations at UBS Financial Services told CNBC. “This is very heavy volume again and that tells me that we’ve got people liquidating to raise cash."
Looking for Market Bottom? You Could Have a Long Wait

Moody's said while they are maintaining the U.S.'s AAA status, the agency said it has doubts over the long-term enforceability of the budget cuts already decided by Congress.

This comes after Standard & Poor's move to downgrade U.S.'s rating to AA-plus from AAA last Friday after a wild week for stocks—its worst in more than two years.

And in its latest move, S&P also lowered Fannie Mae, Freddie Mac and Federal Home Loan Bank's debt to AA-plus from AAA.

S&P came in for significant criticism from U.S. Treasury Secretary Timothy Geithner, who said the rating agency showed "terrible judgment" in lowering the U.S. government’s credit rating.

Meanwhile, President Obama said financial markets around the world "still believe our credit is AAA and the world's investors agree," although his speech did little to cheer up the market.

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iVillage Member
Registered: 11-27-2009
Mon, 08-08-2011 - 5:22pm
Geithner, Buffett, Obama, et al. can continue to say that S&P made an error, based on the market today, they sound like they don't have a clue. The fact is the downgrade is being noticed, it has shaken confidence in the US economy. I think that an increase in interest rates are quite possibly just around the corner.
I listened to a clip on Realclearpolitics.com of Greenspan saying that the debt is basically no big deal, we "can [simply] print money" to pay the debt. Really? Just print money? That's the answer?
iVillage Member
Registered: 03-03-2009
Mon, 08-08-2011 - 6:21pm

It might be well if you read those books too.

Jabberwocka

iVillage Member
Registered: 02-05-2011
Mon, 08-08-2011 - 11:02pm
I read the report. The problem is we spend too much and don't tax enough.

There isn't enough money on this planet to satisfy the spending dreams of Obama, Reid and Pelosi.

It is time Obama worked to help and stop damaging our economy.
iVillage Member
Registered: 11-11-1999
Mon, 08-08-2011 - 11:06pm

Market's been tanking ever since the Republicans took over the House. Kind of mirrors what it did when they held the White House, and they ushered in 2 recessions under one president to boot. Economic geniuses.

dablacksox


Cynic: a blackguard whose faulty vision sees things as they are, not as they ought to be.---Ambrose Bierce, The Devil's Dictionary.

iVillage Member
Registered: 11-11-1999
Mon, 08-08-2011 - 11:14pm

BTW-you do know that all 18 countries that have a S&P AAA rating have socialized medicine......

dablacksox


Cynic: a blackguard whose faulty vision sees things as they are, not as they ought to be.---Ambrose Bierce, The Devil's Dictionary.

iVillage Member
Registered: 03-18-2000
Tue, 08-09-2011 - 8:39am
What a difference a day makes. :)

Tue Aug 9, 2011 8:04am EDT
US STOCKS-Futures rebound from plunge, Fed statement due
http://www.reuters.com/article/2011/08/09/markets-stocks-idUSN1E77804Z20110809

 


Photobucket&nbs

iVillage Member
Registered: 02-05-2011
Tue, 08-09-2011 - 11:26am
The economy has been tanking since Obama took over the Presidency.
iVillage Member
Registered: 02-05-2011
Tue, 08-09-2011 - 11:29am
Up then down. http://www.cnbc.com/id/44073098

What a difference an hour makes.
iVillage Member
Registered: 02-05-2011
Tue, 08-09-2011 - 1:09pm
Most currently bankrupt countries also have socialized medicine, and riots in the streets.
iVillage Member
Registered: 11-11-1999
Tue, 08-09-2011 - 1:10pm

The economy tanked under Bush and was tanked when Obama took over.

dablacksox


Cynic: a blackguard whose faulty vision sees things as they are, not as they ought to be.---Ambrose Bierce, The Devil's Dictionary.

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