Dow falls more than 600 points; markets in free-fall

msn.com ^ | 10/09-2008 | By Charley Blaine and Elizabeth Strott

[Red Badger]

The Dow Jones industrials fell under 9,000 this afternoon for the first time since the summer of 2003 as investor confidence that markets would stabilize appeared to collapse. At 3:40 p.m. ET, the blue chips were down 641 points, or 6.9%, to 8,617. The Standard & Poor's 500 Index was off 74 points, or 7.5% to 911. The Nasdaq Composite Index was down 94 points, or 5.4%, to 1,646. The S&P fell under a closely monitored support level of 960. A support level is important because it is supposed to trigger new buying. At those levels, the crash of 2008 has left the Dow 39% below its record close of 14,164.53 and the S&P 500 down 41% from its record close of 1,565.15. Ironically, both records were set exactly one year ago today.

[UCFRoadWarrior]

Looks like my First Mattress account is earning more than my investments....not good

[Andy from Chapel Hill]

The markets are down because the fear of an Obama presidency is sinking in...everything will be worth less in the future instead of worth more.

[Netizen]

Done. Not that it will do any good. That money is already spent isn’t it?

[Netizen]

McCain needs to buy time on the networks.

[comebacknewt]

I’ve already got my “Don’t Blame Me, I Voted for McCain” bumper sticker on the back of my Hummer.

[hattend]

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[CottonBall]

After all the “bubbles” of the last ten years or so (real estate, dot-com, etc.), could the market be returning downward to a “true measure” of its actual value, vis-a-vis all the “pumping up” of the last decade?

When I look at a chart of the DOW and see that a logarithmic scale is used to try to make it look somewhat linear - and even then it doesn't - it seems vastly overinflated. Starting in 1995, it has increased ridiculously fast - our economic growth hasn't been THAT great compared to previous decades. And I think analysts have been saying that the P/E ratio of most stocks have been too high.

Yup - you're probably right. But it doesn't help those that had money in while prices were inflated. (myself included) The DOW might recover, but many of our portfolios won't (in time to retire). And if Obama wins, well....it's all over. Higher taxes and socialism never helped a market.

[CottonBall]

;)

(Caught me not reading the article first! My excuse is there there were no carriage returns or other such formatting....my bad eyes can’t see that well any more!)

[blam]

"How can we teach these bastards a lesson? Take OUR money away from THEM."

Track down the retired senators and representatives in your area, kick them out of their mansions and then move in. If they resist, shoot them.

[CottonBall]

right - thanks.

[Road Warrior ‘04]

I'm afraid that the investors are afraid of the government getting involved. Since the passage of thew bail out bill, the market has fallen 21%. Nearly '87, but over a couple of weeks. Get the gubment out of it!

Wilbur Ross is afraid of the gubment, too!

[San Jacinto]

Those who are seeing a lifetime of hard work go up in smoke and their retirement plans blown to shit can take heart in the fact that people who took out hefty mortgages without the slightest ability to ever pay the debt will be relieved of such a bothersome responsibility.

Also take comfort in knowing that when those virtually worthless instruments were bundled and insured and then traded up the chain as actual securities, many a fine bonus and substantial commission was earned by the traders and fund managers in admirable hocus-pocus fashion. Time to pay the piper? Don't worry -- bailout on the way!

It's also nice to know Jamie Gorelick, Jim Johnson and Frank Rains will have fat bank accounts and positions of influence in the next administration in order to get much fatter.

And finally, rest assured that Bareny Frank and Chris Dodd will be there for just as long as they want to be there in order to help us through.

[blam]

"Well, in that case it really won’t matter if you dumped your stock now or not. Just curious. Who’s going to be fighting each other in this civil war?"

I'm not real sure...I do expect that everyone will be fighting mad though...something will turn up.

[Cold Heat]

Don’t know why, but that made me bust out laughing. Thanx, cuz I sure needed it!!

Yeah, the link came from a financial site. They gave me a good laugh, so I passed it on.

[El Gato]

I think that $700B was designed to get us through the upcoming election cycle, but I’m not sure it will make it. I’m hoping for massive “throw the bums out” sentiment at the polls.

That's likely what we will get..mostly.

The problem is that more Republican Bums in the Senate are up for reelection. The White House is currently Republican, and there are probalby more absolutely safe, occupy until death, Dem seats in the House than Republican ones. Enough to more than make up for the higher number of 'Rats in Congress..

Thus, throwing the bums out, which I fully expect to happen, will result in a larger Senate majority for the 'Rats, about the same in the House, and President Barak Hussein Obama sitting at 1600 Pennsylvania.

Nice huh?

[Xenophon450]

Thank you for the charts, the resemblances are uncanny. I do believe that this downturn will however persist even past the election, regardless of who is elected. I suppose though, how long mired depends on who is chosen.

[Tunehead54]

In November 2007 with the housing crunch and the subprime mess popping up I considered going all to cash - the reason I didn't - a big 'ol cap gains hit. My money manager gave me the 'ol market timers lose over time stuff, etc.

---

Here's the important part - down 35% I'm probably going to order sell on everything to cash tomorrow - historically I panic at the very bottom and then things turn around so I'm calling the bottom at 8250 and I'll miss the big run up to 15000. You heard it here first. ;-(

[Redcloak]

I’m going long on lead. (Preferably with copper jacketing.)

But seriously...

The markets will eventually come back. The question is “When?”. “President Obama” will make the answer “Not any time soon.” Like FDR, he stands poised to put the Great in Great Depression. “President McCain”, on the other hand, may be as big a screw-up as Obama; but, I’ll take “may” over “will” any day of the week.

[ichabod1]

I’m still expecting a terrorist strike just when we’re at our lowest regarding the economy.

[EnquiringMind]

So how come nobody’s buying?