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Dow plunges 700 amid global sell-off
Mr. O:
Dow plunges 700 points amid global sell-off
Monday October 6, 2:39 pm ET
By Joe Bel Bruno, AP Business Writer
Dow Jones industrial average plunges 700 points amid global sell-off
NEW YORK (AP) -- The Dow Jones industrials skidded more than 700 points and fell below 10,000 for the first time in four years, while the credit markets remained under strain. Financial markets took a despairing view of the future Monday, seeing contagion in a credit crisis that threatens to cascade through economies globally despite government efforts to provide relief.
Investors around the world have come to the sobering realization that the Bush administration's $700 billion rescue plan won't work quickly to unfreeze the credit markets. Global banks, hobbled by wrong-way bets on mortgage securities, remain starved for cash as credit has dried up.
That has sent stocks spiraling downward in the U.S., Europe and Asia, and driven investors to sink money into the relative safety of U.S. government debt. Fears about a global recession also caused oil to drop below $90 a barrel; and the benchmark index that gauges fear in the market jumped to the highest level in its 18-year history.
"The fact is people are scared and the only thing they're doing is selling," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research. "Investors are cleaning out portfolios and getting rid of everything because nothing seems to be working."
The selling was so extreme that only 67 stocks rose on the NYSE -- and 3,155 dropped. That's a telling sign considering the stock market is considered a leading economic indicator, with investors tending to buy and sell based on where they believe the economy will be in six to nine months.
Monday's steep decline on Wall Street indicates that investors are becoming more convinced that the country is leading a prolonged economic crisis that is spreading to other nations. Over the weekend, governments across Europe rushed to prop up failing banks, while the governments of Germany, Ireland and Greece also said they would guarantee bank deposits.
As the U.S. tries to repair its battered banking system, the German government and financial industry agreed on a $68 billion bailout for commercial-property lender Hypo Real Estate Holding AG. And France's BNP Paribas agreed to acquire a 75 percent stake in Fortis's Belgium bank after a government rescue failed.
The Fed also took fresh steps to help ease credit markets. The central bank said Monday it will begin paying interest on commercial banks' reserves and will expand its loan program to squeezed banks.
Joseph V. Battipaglia, chief investment officer at Ryan Beck & Co., said government intervention certainly might help. However, he believes investors are sensing that what's happening in the economy is a shift in the extent to which consumers and businesses take on debt, a change that will take years to play out.
"This is a global deleveraging of many economies," he said. "It might appear that you're going into the abyss where the economy grinds to a halt and the financial system goes into complete disarray. But, what the market is really reading here is that this is a global phenomenon, and when you delever like this, it is a process that takes a very long period of time measured in years, not quarters."
That, he said, is being reflected in major stock indexes being repriced significantly lower. In mid-afternoon trading, the Dow Jones industrial average fell 703.68, or 6.82 percent, to 9,621.70, dropping below 10,000 for the first time since Oct. 29, 2004. The Dow came within striking distance of its biggest one-day point decline -- 778, which the blue chips suffered a week ago when investors feared the bailout package might not pass Congress.
Broader indexes also tumbled. The Standard & Poor's 500 index shed 81.91, or 7.45 percent, to 1,017.32; and the Nasdaq composite index fell 156.33, or 8.03 percent, to 1,791.06. The Russell 2000 index of smaller companies dropped 48.68, or 7.86 percent,
Yahoo.com
This...i'm speechless...we gone for sure...
I say that stupid fuckin' bill is pointless...fuckin' bush.
herpes:
We're fucked.... we are really fucked.
dj dwezill:
these guys dipped the well to many times!
:bomb:
[SIZE="4"]
Brits led astray by bad navigation. Sothern Iraq, Saudi AWACS. For me this is not a coincidence.
These crashes are the result of intentional sabatoge by Huges, from the private sector, they were able to get these AWACS in place and operating in the now current combat zone. There have been crashes that point to just such events happining. f18/hornet flies in front of an active patriot battery. 2 18/ hornets fly into mountian at nite.
My father was an employee of Huges. He was billed to the Saudies as an engineer, he has a political sciense degree from the Defence Intellegence College, in Washinton, DC. His business card said he was a Techinical Trainning Enginner. While training the Saudies in the early 90'S, he repoted back to Hughes that the planes wern't working right. They told him to shutup about it and continue as though nothing had happened. After 1 or 2 more trips to the desert to train the Saudies he decided not to go back for fear of his Trainnes finding out about the deseption and cutting off his head. He said the problem with the planes was that they were miscalibrated, resulting in operators failing to make vectors, and or, downloading faulty NAV to other planes in their operating areas. The Saudies now have 5 of these planes working in their turf.
I don't think Bush even knows about this trick Huges is playing out with the lives of coalition forces in the area. 6 Blackhawks went down rescuing sone of the oil Execs. in Sudan.[/SIZE]
Bush and his old school money friends, real republicans, the kind that think world over population should be curbed by
about 4 billion! Any way they are the only benefactors of this bail out and it would have been necessary even if the vote on
it came after the election. Bush may actually try to enact emergency powers act to stay in office. Not a bad idea since
none of the candidates is qualified. 8) Pardon my candor but i believe that you vote has only counted as a way to encourage
mass belief that the issues that the candidates are elected on are seldom part of their actual governmental polices, changed
to suite congress, special intrests, or other big money factors having nothing to do with their citizens wishes or votes.
See if this person will do anything,
United Nations
_______________
Louise Kantrow
212-703-5042
lkw@iccwbo.org
Adam Greene
212-703-5056
agreene@uscib.org
Information Technology / Electronic Commerce
____________________________________________
Heather Shaw
212-703-5068
hshaw@uscib.org
Joseph G. Gavin III
_____________________________________________________________________
Vice President, Trade Policy and Associate Washington Representative
(202) 371-1316 or jgavin@uscib-dc.org
I don't think anyone can do anything.
Listen to Seanessy online at Last.fm
Listen to Seanessy's first album, Gettin' Filthy online at Last.fm
eS El Duque:
yall acting like your gonna get fired from your job tomorrow cuz of this...yall need to chill
Turf Hitta:
--- Quote from: eS El Duque on October 06, 2008, 09:41:52 PM ---yall acting like your gonna get fired from your job tomorrow cuz of this...yall need to chill
--- End quote ---
or maybe they are acting like the economy is more fucked up than at any other time in our generation and the credit crisis, inflation and other factors are depreciating the purchasing power of the dollar for every American. We are definitely fucked and I have a feeling that bailing these failed institutions out aren't going to do anything but put a band aid on a point blank gun shot to the head while taxing the shit out of the little people who are already struggling as it is. Or yeah, maybe they are thinking they are going to get laid off tomorrow, that is actually a very real possibility.
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