Dow Plummets 370 as Markets Rethink Rescue

[Wretched Excess]

the democrats spent the weekend trashing the rescue plan, not because they had any principled opposition to
it, but because they wanted to spook wall street into another panicked sell off.  That way, The BarackStar! can
run around the country reading from his teleprompter about how this is the biggest financial disaster since the great
depression, and it is all george bush/john mccain's fault.  And also how everyone is so screwed no anyway, that
they don't have anything to lose by voting for an empty suit for president that has less experience for the job
to which he aspires than george bush's terrier, barney.

Dow Plummets 370 as Markets Rethink Rescue

The euphoria that swept Wall Street late last week quickly evaporated on Monday as the Dow plummeted 370 points, crude oil prices spiked by an all-time record of $25 and the greenback suffered its worst day against the euro ever.

Today's Market

According to preliminary calculations, the Dow Jones Industrial Average closed down 376.65 points, or 3.31%, to 11012.19. The broader S&P 500 Index closed down 48.01 points, to 3.83%, to 1207.07 while the Nasdaq Composite Index ended down 94.92 points, or 4.17%, to 2178.98. The consumer-friendly Fox 50 Index fell 28.42 points, or 3.15% to a reading of 873.03.

Turbulence continues to reign on Wall Street as the Dow closed with a triple-digit move for the sixth consecutive trading session. Monday's losses halve what was the largest two-day percentage jump for the S&P 500 since October 1987.

“Uncertainty breeds volatility. Until there is more clarity on the status of the U.S. financial system, there is going to continue to be volatility in both direction," said Michael James, senior equity trader at Wedbush Morgan Securities.

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[Lord Undies]

This isn't working for The Hussein One, or the democrats in general.  Since the mainstream liberal media is no longer the major voice of the nation, and since the democrat brand is no longer automatically considered the champions of the "little people", the narrative that the economy is falling apart and it is all the fault of evil Republicans isn't ringing true with the regular folks.  In fact, this "crisis" is not making anyone want to run to the side of the Magic Inexperienced Negro for salvation. 

Now more than ever people want a grown up in charge.  Meanwhile, there is not much evidence of panic in the streets.  People are still going about their business.  This makes democrats cry in frustration.  I laugh.

[Wretched Excess]

This isn't working for The Hussein One, or the democrats in general.  Since the mainstream liberal media is no longer the major voice of the nation, and since the democrat brand is no longer automatically considered the champions of the "little people", the narrative that the economy is falling apart and it is all the fault of evil Republicans isn't ringing true with the regular folks.  In fact, this "crisis" is not making anyone want to run to the side of the Magic Inexperienced Negro for salvation. 

Now more than ever people want a grown up in charge.  Meanwhile, there is not much evidence of panic in the streets.  People are still going about their business.  This makes democrats cry in frustration.  I laugh.

I don't know of that's true or not.  the numbers are moving around, it's just hard to tell exactly what the driving force really is.  i would call your attention once again to Florida in 2000.  if a couple of hundred people had changed their votes, or been swayed by something, or otherwise been scared away from GWB . . . . well, you know what would have happened.

it's an iron clad habit of mine to never underestimate the adversary.

[Hawkgirl]

I will get worried if we have a repeat of 1987's black monday.  The banking stocks are obviously taking a much needed beating for so much falsification of records to grant mortgages to people who shouldn't have qualified.  Most other sectors and blue chip companies are doing okay.  
The big question is, in it's most simplistic way of putting it, will the banking sector bring down the rest of the market.

[Lord Undies]

This isn't working for The Hussein One, or the democrats in general.  Since the mainstream liberal media is no longer the major voice of the nation, and since the democrat brand is no longer automatically considered the champions of the "little people", the narrative that the economy is falling apart and it is all the fault of evil Republicans isn't ringing true with the regular folks.  In fact, this "crisis" is not making anyone want to run to the side of the Magic Inexperienced Negro for salvation. 

Now more than ever people want a grown up in charge.  Meanwhile, there is not much evidence of panic in the streets.  People are still going about their business.  This makes democrats cry in frustration.  I laugh.

I don't know of that's true or not.  the numbers are moving around, it's just hard to tell exactly what the driving force really is.  i would call your attention once again to Florida in 2000.  if a couple of hundred people had changed their votes, or been swayed by something, or otherwise been scared away from GWB . . . . well, you know what would have happened.

it's an iron clad habit of mine to never underestimate the adversary.

I'm not underestimating or discounting the variables.  I am saying the manipulation of issues, which has always worked in the past for the democrats, is no longer are a sure thing.  Their wool eyecovers have holes in them. 

[Jim]

I think the fall was part profit taking and mostly reaction to how hard the dollar will get hit if this trillion dollar thing goes through.

[miskie]

I think the fall was part profit taking and mostly reaction to how hard the dollar will get hit if this trillion dollar thing goes through.

People shoved their money into "sure things" until this shakes out, namely Gold - in both the shiny and black liquid varieties.

I really don't understand the Dems on this one - it would do them good to put a lid on this before the first debate - Yes, I know its centered on foreign policy but I'm certain that because of the gravity this shakeup has, that there will be at least a few minutes directed toward it.

And as we know, Obama and Improvisation don't get along.

[Jim]

I think the fall was part profit taking and mostly reaction to how hard the dollar will get hit if this trillion dollar thing goes through.

People shoved their money into "sure things" until this shakes out, namely Gold - in both the shiny and black liquid varieties.

I really don't understand the Dems on this one - it would do them good to put a lid on this before the first debate - Yes, I know its centered on foreign policy but I'm certain that because of the gravity this shakeup has, that there will be at least a few minutes directed toward it.

And as we know, Obama and Improvisation don't get along.

They want to glom onto it for some vote buying, like always.
This thing IS foreign policy, the world is a very small place anymore.

[Lauri]

This isn't working for The Hussein One, or the democrats in general.  Since the mainstream liberal media is no longer the major voice of the nation, and since the democrat brand is no longer automatically considered the champions of the "little people", the narrative that the economy is falling apart and it is all the fault of evil Republicans isn't ringing true with the regular folks.  In fact, this "crisis" is not making anyone want to run to the side of the Magic Inexperienced Negro for salvation. 

Now more than ever people want a grown up in charge.  Meanwhile, there is not much evidence of panic in the streets.  People are still going about their business.  This makes democrats cry in frustration.  I laugh.

I know I live in a bubble in Seattle.. I get that. But still, my neighbors seem to be doing just fine. In fact, little hippie girl's husband is so swamped with work, he has three businesses going right now.

Dont get me wrong, people here have debt. We are all in brand new homes and that's always expensive the first few years. But we can manage and I cannot think of anyone who is worried about their personal finances. Or maybe, if they are, they arent discussing it. People are buying new cars.. we have a wedding come up next year (our older kiddo!) everybody is going out to eat together and most of us are stay at home moms.  its going to be ok. We are all making it.

I DO think this bale out is a collosal mistake and I really have no idea how Obama could figure it out. Youre right.. I want an adult in charge. McCain has made some money in his life, he has relationships on both sides of the aisles - he knows how this whole game works. Let's face it, its time to get stuff rolling again and it would be nice if the kids in DC could at least not loathe each other. And yet, he keeps flip flopping all over the place. He is against it, then he's for it .. then he jumps on that 'oversight' bandwagon..

What pisses me off the most is that I dont want the bailout, but I know its necessary to fix it. So, I'm on the side of the moobats on this one. ANd that also pisses me off. 

Anyhow.. at least I can face up to the responsibility. The moonbats are against it all.

If Obama gets in.. we are just so ****ed.

[Lauri]

I will get worried if we have a repeat of 1987's black monday.  The banking stocks are obviously taking a much needed beating for so much falsification of records to grant mortgages to people who shouldn't have qualified.  Most other sectors and blue chip companies are doing okay.  
The big question is, in it's most simplistic way of putting it, will the banking sector bring down the rest of the market.

i hope we dont have to find out.

my fear is that the massive over correction is also going to be painful. and that either way, we will feel it all over as it ripples from one market to the next.

look at what we're dealing with again .. gas went up, what 12 bucks this morning? i dont know how much more it went up.. its been causing food prices to go up for months. but its not like the world doesnt always have issues going on somewhere.

i was just hoping the US would pull back from the edge. I'm worried the 'sky is falling' Dems seem to be convincing people that Obama is the answer.

I hope they [Bush..Rove] pull out something great that fixes the problem.. but i'm starting to doubt anything good is headed our way. I think our elected officials are anything BUT economics wizards and they have all, both GOP and Dems together, finally screwed up good I think.

[DumbAss Tanker]

Unless you're actually living off investment income, it's not the end of the world either way.  The bailout is pretty necessary.  The reason it is necessary is to make up for years of insufficient DISINTERESTED oversight, so there needs to be independent oversight which is not in the pockets of the industry, Congress, or the Administration (and there are a number of Federal agencies that are designed to function exactly that way to use as a model).  A couple of reforms that would help would be something to temper the velocity of trading to stifle the stampede mentality, a total prohibition on political contributions for Congressionally chartered nonprofits Fannie Mae and Freeie Mac, and an executive compensation scheme for them subject to approval by the oversight organization which does not reward feckless behavior and requires thorough outside audit before anybody gets incentive payments.
The unregulated free market model breaks down completely when you have a step of the process concentrated into one or two huge players who can do whatever economically irrational thing (in the larger sense, not in the sense of the impact on their executives' personal wealth) they want to without consequences, which has been the way the system operated up until last week. 

[Wretched Excess]

I have been watching the press reports of the bailout hearings.  it's a little annoying to watch chris dodd, the doddering old man that was asleep at the switch of his committee when this whole thing splattered against the wall, suddenly acting like the patron saint of fiscal virtue.

[NHSparky]

C'mon, people--while this is serious, it's NOT Black Monday by any stretch of the imagination, nor is it a "dead cat bounce" after a major crash.

We lost 4-7 TRILLION dollars during the dot-com bust.  Where was the media hysteria then?  Where was Jim Cramer screaming about disaster when the NASDAQ lost over 65 percent of its value in ONE YEAR?  Was Congress panicking when the Dow took a hit after 9/11?

Sorry, but so much of this is political posturing it's starting to make me sick.  Yes, a lot of this is serious, but without the overreaction, it would be a correction, not a panic.

[Chris_]

Sparky -

Apparently what made it so serious is that last Wednesday, NO commercial paper - short term loans made to businesses for material purchases, farms for seed and fertilizer purchases, etc... - were available to ANYONE in America, on ANY TERMS.  A result of this was that individuals in America made a run on their mutual funds to the tune of $114 billion or so, in order to liquidate what they could.  Mutual funds are largely stock investments, further depleting the capital available for business.  Finally, the sense of how panicked the experienced traders were about this, is the final domino - all that cash pulled out of those mutual funds was for the most part rolled over into Treasury bills.  Treasury bills are terrible investments from a return on investment perspective; T-Bills are what people buy when they are more concerned with a return OF  their investment.  Some of the T-bills being sold on Wednesday were for a 0% return - no profit for the investor, just a return of the investment.

[Hawkgirl]

C'mon, people--while this is serious, it's NOT Black Monday by any stretch of the imagination, nor is it a "dead cat bounce" after a major crash.

We lost 4-7 TRILLION dollars during the dot-com bust.  Where was the media hysteria then?  Where was Jim Cramer screaming about disaster when the NASDAQ lost over 65 percent of its value in ONE YEAR?  Was Congress panicking when the Dow took a hit after 9/11?

Sorry, but so much of this is political posturing it's starting to make me sick.  Yes, a lot of this is serious, but without the overreaction, it would be a correction, not a panic.

I remember that all too well...but if you're wondering why there was no media outrage....Clinton was the sitting president.

[Lauri]

I have been watching the press reports of the bailout hearings.  it's a little annoying to watch chris dodd, the doddering old man that was asleep at the switch of his committee when this whole thing splattered against the wall, suddenly acting like the patron saint of fiscal virtue.

i watched it this morning and the whole thing is just surreal.

i turned it off an went to clean a closet.. 

[Wretched Excess]

I have been watching the press reports of the bailout hearings.  it's a little annoying to watch chris dodd, the doddering old man that was asleep at the switch of his committee when this whole thing splattered against the wall, suddenly acting like the patron saint of fiscal virtue.

i watched it this morning and the whole thing is just surreal.

i turned it off an went to clean a closet.. 

that was a much more prudent use of your time.

[Lauri]

I have been watching the press reports of the bailout hearings.  it's a little annoying to watch chris dodd, the doddering old man that was asleep at the switch of his committee when this whole thing splattered against the wall, suddenly acting like the patron saint of fiscal virtue.

i watched it this morning and the whole thing is just surreal.

i turned it off an went to clean a closet.. 

that was a much more prudent use of your time.

its wearing on me.. i had to turn it off and today is going to be one long orgy of talking heads for hours before the president speaks. i'm glad ive got plans with my daughter .. i'll hopefully miss most of it.