Posted on 10/06/2008 7:33:49 AM PDT by AngieGal
Dow slides below 10,000 for first time in nearly 4 years.
U.S. stocks tumbled on Monday, sending the Dow industrials below the 10,000 mark for the first time in nearly four years, as last week's $700 billion bailout package and government interventions in Europe over the weekend failed to soothe nervousness in global markets. Europe didn't reach an accord on bailouts over the weekend, and instead each country is handling the fallouts on their own. Germany backed its retail deposits, following similar moves by Ireland and Greece. Holland nationalized the Dutch operations of Fortis, and a new 50 billion euro financing package was reached for Germany's Hypo Real Estate.
"With global equity markets selling off today, and the developments which followed the weekend European crisis meeting, much nervousness abounds," said Jennifer Lee, analyst at BMO Capital Markets.
(Excerpt) Read more at marketwatch.com ...
I bought a Dillion XL650 with 5,000 bullets and 3,000 cases over the weekend...
BLOAT!
I’m not sure what they mean when they say some banks are leveraged at 40 to 1. I’m guessing it means that for every dollar they have they borrowed another 40 to use?
And the $2 trillion in money at homes at risk was part of that original dollar. So now the banks are at risk for a total of 40 x 2 trillion? Although I seem to recall the value of credit derivitives is around 50 trillion. So - perhaps its not as bad as I think! /s
Then we are all in the same ballpark.
The worst case I’ve seen so far, unless I misunderstood his post, was from Lee Adler on www.capitalstool.com who said that 620 was possible. I’m going to have to keep tuned in to that horrendous possibility. Call that an “unsubstantiated rumor” as there is a chance I got that wrong.
I think 770 is a given, which is where the S&P bottomed in 2002. I do not expect the S&P to hold support at 960. Of course, I am a dumb engineer with no financial training or experience, so what do I know? I just read and study the writings of the people who have been on the right side of the economic predictions over the past 2-4 years.
Wow! It suddenly seems like ages ago that people here were arguing whether the bull market was over and whether we were in a bear market. I remember sadly reading all the posts from people screaming to us to buy the dips when the market was off only 10%, so convinced they were that the “correction” had to be complete. Now we are back in market crash territory, like 2000 to 2002.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.