Posted on 06/06/2006 9:02:56 AM PDT by philsfan24
NEW YORK (Reuters) - The Dow Jones industrial average (^DJI - News) fell below the psychologically key 11,000 level for the first time in three months as U.S. stocks extended their fall amid worries that the Federal Reserve will keep raising interest rates.
Investors fear that higher rates would slow the economy and hurt corporate profits. A break below 11,000, which was a key near-term support level, could trigger additional weakness in the index, according to technical analysts.
The Dow Jones industrial average (^DJI - News) was down 49.22 points, or 0.45 percent, at 10,999.50. The Standard & Poor's 500 Index (^SPX - News) was down 5.10 points, or 0.40 percent, at 1,260.19. The Nasdaq Composite Index (NasdaqSC:^IXIC - News) was down 13.66 points, or 0.63 percent, at 2,155.96.
Isn't it nice to have money?
""Isn't it nice to have money?""
ahem......uh yeah : )
My background is in international finance in Europe, Asia, and, of course, the good ol USA. Your post is 100% accurate.
"We like short shorts" : )
This is getting ridiculous. I wish Bernanke would just do his job and keep his mouth shut about rate hikes. This guy needs to keep of CNBC. I guess he hasn't learned yet that what he says on talk shows negatively impacts those of us with stock investments. Of course the MSM will make the most of the Dow dipping below 11,000, even as they ignored the big run up last month and in April.
Gotta love the unconstitutional and corrupt Federal Reserve. I keep hearing folks gripe that oil prices are going to ruin the US economy...
Hey folks, how about the Federal Reserve? 100% of the perceived inflation in the last year is based on fuel prices - a factor that the Fed has no control over and the government's continual printing of money. But instead of letting well enough alone, they have chosen to continue to raise rates.
And this coming from someone who has sworn off credit other than for automobile and home (no revolving debt).
It better for the markets if the shake out comes earlier rather than later. Real estate is already shaking out: Like a huge tanker on the high seas running at 20 knots, it takes time to come to a full stop. On the other hand, stock markets react instantly to bad news. Very BAD news travels instantly in cyberspace. I posted a link yesterday to a report about a physicist who predicted home value will fall dramatically. All the way back to 2001 - 2002 values. This cycle will take about ten years. The smart money has already moved on. Get ready for the ride of the Century.
yup, foreclosures galore
http://patrick.net/housing/crash.html
""Population loss. San Francisco continues to lose population at the fastest rate of any city in the US and most of those are professional jobs. The problem is not only the dot-com crash, but also the outsourcing technical jobs to India, which continues at a frantic pace as corporations realize they can pay an Indian only 20% of what they must pay a similarly qualified employee in the Bay Area.""
And away we go!
The good news - your debts will be easier to pay off with devalued dollars.
BUMP
This morning I heard the new Fed Dude say the drop in the stock market was "way overdue" and signaled more tightening of the fed funds rate. Fed Dude is on a mission to strangle inflation.....yeah....I guess it never occurred to this brain surgeon that the main reason for our current inflation is not salaries or real estate but the PASSING ON OF THE HIGHER COST OF FUEL TO THE CONSUMER!!!!
I sold my overpriced home on the beach last June at the peak for a 500% profit, thank you.
Nice job!
I have been in real estate for 25 years, and I knew it was time to bail : )
Greenspan did not increase interest rates because of irrational exuberance.
He increased rates because that's the only way to keep foreign investors buying T-bills at the treasury auctions.
And if the dollar falls more, the cycle will continue, like a snake eating it's own tail.
And I've been studying economics and real estate for about 20 years, so I bailed, too.
And a hearty B U M P to your wisdom and good fortune!
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