DOW Below 6700 10:17AM CDT 6,679.19 Down 196.65 (2.86%)

Yahoo Finance ^ | 3/5/2009 | DOW

[GOPJ]

Kill Citi Bank. It is a Zombie Bank.

I'd rather let it go under now while the USA is still solvent than in a year when we're broke. Dems are talking about "means" testing for social security now... they're going to bleed us dry.

[justsaynomore]

Boy does this rile me. The 52 week “range” is as high as 13,191.50. Can you believe that? Values cut in half.

Amazing to hear people talking of “inheriting this economic crisis”. How can they continue to say that? Stocks have dropped something near 20% since he’s been in office!!!

[bvw]

I think Dow 3300 is a probability and Dow sub 1000 a possibility.

[668 - Neighbor of the Beast]

Z: When you think about it, it was a truly stunning comment.

LL: Many Americans, including many elderly Americans, have suddenly lost more than 50% of their life savings. And to Obama, it's just like a daily tracking poll.

It's shocking how he got so little reaction to that statement. A Republican that out-of-touch would have had his sanity questioned.

[Oatka]

It seems like things are really starting to accelerate

Indeed. This 5-day chart was taken at 8 a.m. PST and the market is looking EXTREMELY weak. I say that because when the market gaps, in this case down, it usually goes back up to "fill in the blanks" and then rolls over and continues down. In this case it never made it that far and then gapped down again this morning. Once it breaks that line at about 6700, we've got more free-falling to do.

To get an idea of how far we may go, pick your own level of support from this long-term chart. Anybody who is trying to ride this market out is committing financial suicide.

(That '65-'82 support is at 1000 - ridiculous to think that low but once panic sets it it always overdoes it. At that level, if I have any money left, After Obama, even I would get back in. :-) )

[exit82]

I can't even talk to my father about politics anymore, he refused to discuss it.

There are none so blind as they who will not see.

I live in a retirement community and most of my neighboirs have lost half their savings. These savings and stocks are generating the income to pay for the month;y fees and living expenses. Not any more.

The losses are real and they hurt deeply.

Zero and Joe the Dumber have a lot of explaining to do.

[668 - Neighbor of the Beast]

6,677.59 at 11:49am
-198.25

[Anti-Bubba182]

When the unemployment chart looks like the Dow chart THAT is when Obama’s approval tanks.

[GOPJ]

Amazing to hear people talking of “inheriting this economic crisis”. How can they continue to say that? Stocks have dropped something near 20% since he’s been in office!!!

The MSM is the mouthpiece for Dems - and dems don't want the truth out. It's that easy. When Clinton took office and the economy turned great the second month the MSM gave all the credit to Clinton.

If dems totally destroy the economy and we're three years down the road, the MSM will still blame Bush.

The MSM doesn't care what the people think of them - they care about winning "prizes". Fools.

[Nervous Tick]

>> Almost time to

PAST time to!

[jersey117]

Everything Obama does seems to be geared toward hurting, not helping the market.

They need to reverse course pronto or we are in deep $hit. Has anyone come out and addressed this yet? Zero and his entire incompetent team need to be run out town.

[AngelesCrestHighway]

Hey Bozo Obama! Would a 1000 point drop in the dow just be one of the daily girations you are not concerned about?

[jersey117]

He inherited a bad economy, but things had stabilized until he was inaugurated. It was all down hill from there.

[Terry Mross]

An old man told me last fall it would get to 6500.

[semantic]

Show him this essay Denninger just posted up a few minutes ago:

# All pension funds, private and public, are done. If you are receiving one, you won't be. If you think you will in the future, you won't be. PBGC will fail as well. Pension funds will be forced to start eating their "seed corn" within the next 12 months and once that begins there is no way to recover.

# All annuities will be defaulted to the state insurance protection (if any) on them. The state insurance funds will be bankrupted and unable to be replenished. Essentially, all annuities are toast. Expect zero, be ecstatic if you do better. All insurance companies with material exposure to these obligations will go bankrupt, without exception. Some of these firms are dangerously close to this happening right here and now; the rest will die within the next 6-12 months. If you have other insured interests with these firms, be prepared to pay a LOT more with a new company that can't earn anything off investments, and if you have a claim in process at the time it happens, it won't get paid. The probability of you getting "boned" on any transaction with an insurance company is extremely high - I rate this risk in excess of 90%.

# The FDIC will be unable to cover bank failure obligations. They will attempt to do more of what they're doing now (raising insurance rates and doing special assessments) but will fail; the current path has no chance of success. Congress will backstop them (because they must lest shotguns come out) with disastrous results. In short, FDIC backstops will take precedence even over Social Security and Medicare.

# Government debt costs will ramp. This warning has already been issued and is being ignored by President Obama. When (not if) it happens debt-based Federal Funding will disappear. This leads to....

# Tax receipts are cratering and will continue to. I expect total tax receipts to fall to under $1 trillion within the next 12 months. Combined with the impossibility of continued debt issue (rollover will only remain possible at the short duration Treasury has committed to over the last ten years if they cease new issue) a 66% cut in the Federal Budget will become necessary. This will require a complete repudiation of Social Security, Medicare and Medicaid, a 50% cut in the military budget and a 50% across-the-board cut in all other federal programs. That will likely get close.

# Tax-deferred accounts will be seized to fund rollovers of Treasury debt at essentially zero coupon (interest). If you have a 401k, or what's left of it, or an IRA, consider it locked up in Treasuries; it's not yours any more. Count on this happening - it is essentially a certainty.

The time we've all been waiting for appears to have arrived...

[Jimmy Valentine's brother]

[668 - Neighbor of the Beast]

7000 is looking like the good old days...and you’re still in it? Good lord, man, it’s dropping like D. B. Cooper.

[RobRoy]

>>Sucker rally...<<

Yep. I’ve seen two so far. I see a sudden dramatic uptick and figure “someone’s sayin’ something”. Sure enough, there was a White House “everything will be just fine” comment. A few suckers jump in and drive up the price for a half hour or so, then the big boys get out, leaving the suckers with empty bags.

And it continues down.

[Redcloak]

Just a wee "gyration"...

[semantic]

Denninger is an absolute genius; here are some of his comments made over the last hour or so:

We're done guys. Have a look at the XLF and rest of the financials. The market is going to disassemble every company in the S&P 500, one at a time. Government isn't going to force the truth, therefore, government will go down the hole when their funding capacity is cut off, and it will be. This is a binary event - either they cut this out before the backstop demands all collapse on top of them at once, or they die with it. We're done guys. I wish it wasn't true, but it is. The people who can fix it won't fix it, and we as a people are still playing "happy face", and will continue to as a society until it is too late to fix it. There are no mustard seeds, just nuclear explosions.

Its over folks. The fuse has been lit. We are on the edge of a total equity and credit market collapse. It WILL happen unless something comes out of DC imminently. Once the damage is done to those pension funds and insurance companies and they are forced to start eating their seed corn there is no way to fix it. We're talking about the underpinning of the social safety net, and government WILL be forced to divert to the FDIC, which along with Treasury rates going to the moon will instnatly shutdown all entitlement spending including Social Security and Medicare. We are within days of this becoming an inevitable outcome.