Markets Resume Nosedive

Associated Press:

More signs of economic weakness triggered a global sell-off in stocks Thursday. The Dow Jones industrial average fell 400 points in a return to the wild swings in the market last week…

Last week was one of the wildest in Wall Street history. The Dow moved more than 400 points on four straight days for the first time.

But stocks had been relatively stable this week because investors were calmed by strong earnings reports and a flurry of corporate acquisition deals. The Dow had fallen 76 points Tuesday and risen four points Wednesday – the first time that the average rose or fell by less than 100 points on two straight days in nearly three weeks.

That ended Thursday. And with stocks down big, money flooded into U.S. Treasurys and gold, both considered safer investments.

A poll follows: somebody gets the blame for this crap.

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39 Community Comments, Facebook Comments

  1. Irish Patti says:

    will make a killing in the market because stocks are so low. There are hedge fund managers that are loving this volatility because they make money no matter which way the market goes.  

  2. sxp151 says:

    is like trying to explain that it’s raining over Boulder because clouds are fleeing regulatory uncertainty in Iowa. You can do it, and apparently people get paid for it, but the market is essentially just the aggregate behavior of a bunch of people behaving stochastically based on psychological prejudices, together with software designed to automatically magnify the effects of small oscillations.

    Sorry, I mean Ben Bernanke sneezed and that’s why.

  3. Libertad says:


    I mentioned last month that even by the White House’s own probably optimistic definition of the number of jobs created by the stimulus bill, these jobs ended up costing the government (that is to say, the taxpayers now and for generations to come) at least $218,000 per job. В 

    Want to know why they were so expensive? В My guess is that a lot of these projects were like this one described in this August 16, 2011 KOMO report:

    Last year, Seattle Mayor Mike McGinn announced the city had won a coveted $20 million federal grant to invest in weatherization. The unglamorous work of insulating crawl spaces and attics had emerged as a silver bullet in a bleak economy – able to create jobs and shrink carbon footprint – and the announcement came with great fanfare.

    McGinn had joined Vice President Joe Biden in the White House to make it. It came on the eve of Earth Day. It had heady goals: creating 2,000 living-wage jobs in Seattle and retrofitting 2,000 homes in poorer neighborhoods.

    But more than a year later, Seattle’s numbers are lackluster. As of last week, only three homes had been retrofitted and just 14 new jobs have emerged from the program. Many of the jobs are administrative, and not the entry-level pathways once dreamed of for low-income workers. Some people wonder if the original goals are now achievable.

    It’s no wonder Maxine Waters went bananas on Obama yesterday in Detroit. Minority unemployment is up even more then the average in America.

    The Obama Administrations desire to print (money) their way to prosperity is a flawed and bankrupt strategy that has only set up the small guy to be shackled by the resulting inflation.

    So why is the market down ….. Maybe we should ask Austan Goolesbee or Christine Roemer or that tax cheat himself.

    The Obama administration is starting to look like the Ritter administration … eerily similar.

  4. Automaticftp says:

    all those companies–banks, financial institutions, etc., that were “too big to fail” to simply . . . fail.  

    Then we could have started picking up the pieces for real instead of rearranging deck chairs.  

  5. ProgressiveCowgirl says:

    Since they crashed the last time you reported they were recovering, maybe they’ll recover now? Everyone hold your breath and repeat “I think I can…”

  6. GalapagoLarry says:

    (always wanted to post that)

    You poor suckers that invested in the market. You poor suckers and your smarty pants IRAs. Thank luck, I’ve got a pension that…wait…my pension is invested in that fucking market. Oh No Oh Oh Oh Oh Oh.

  7. ArapaGOP says:

    Because it hurts me as much as you, probably more.

    This economy will be unstable and without confidence as long as Barack Obama is President.

  8. skipickle says:

    Hyper volatility will be the name of the game for many years to come. Triggers can come from the common investor (even the institutional ones), but the triggers that set off crazy up and down swings are attributable to our supercomputer-driven hedge funds, and I-banks trading on their own accounts.

    Take advantage of that volatility, invest into it, don’t lament it.

    None of that has much to do with politics, where the rule of thumb should remain – does it create jobs. The stock market’s value has only a small part to play in that.

  9. DavidThi808 says:

    No one knows what the hell Washington or the E.U. is going to do. But the market is confident that the leadership on both sides of the Atlantic is incompetent and mainly acting for political advantage.

    So the market is left trying to estimate where the cluster-fuck that is our political leadership is going to take us. The fundamentals for business are very good, but the political fundamentals are cancelling that out.

    • sxp151 says:

      that the market always acts rationally, then it is easy to conclude that the market is acting rationally in this case as well. Then you can come up with a theory to explain it.

      Of course, your theory won’t explain why the markets were any different three weeks ago (when all the same politicians were in charge), and your theory won’t explain what the market will do tomorrow, but… Wait, why do you have a theory again?

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