Data feeds recession worry and slams Wall Street

Reuters on Yahoo ^ | 10/15/08 | Kristina Cooke

[NormsRevenge]

NEW YORK (Reuters) – Stocks dropped on Wednesday as bleak economic data fed worries that despite all the efforts to unlock credit markets, the economy is unlikely to avoid recession.

Federal Reserve Chairman Ben Bernanke further fueled those concerns when he said the economy faced a significant threat.

The benchmark Standard & Poor's 500 stock index slid more than 7 percent to its intraday low, while the Dow shed more than 500 points to its lowest point for the session so far.

U.S. retail sales in September dropped the most in more than three years, while a measure of New York state manufacturing hit its lowest level since the index started in 2001, intensifying recession fears.

The market fell further after the Federal Reserve said in its Beige Book report that economic activity weakened across the United States in September as businesses revised capital investments and consumers curtailed spending.

[dalebert]

the darn press and government are tanking the economy.

[Perdogg]

The market tanks the afternoon of the last debate, color me skeptical.

[softwarecreator]

How come every time McCain starts showing gains in the polls the stock market sinks?  Coincidence, or is someone (or group of someone's) manipulating this "crisis"?  What a sheer stroke of luck for Bambi that, once again, the stock market drops badly just as a debate is scheduled.  Now the entire focus will be on the economy during the debate.  Funny how that happens, eh?

[softwarecreator]

Exactly, what a freakin' coincidence!  

[goodnesswins]

the mere thought of an OBAMA Presidency TANKS the MARKET.....

[Chet 99]

It was not good when the market went up 9% on monday. Much better if it just goes up steady 1% a day til Nov 4th. The rollercoaster... bad..

[spetznaz]

As I said on another thread, that was a ‘dead cat bounce.’ Recovery will happen, but it will not happen as soon as some seem to think it will.

[kesg]

Didn’t Obama say something yesterday about allowing people to withdraw funds from their 401(k) funds without paying taxes or penalties? Dumb, dumb, dumb....I have heard rumors (mostly from talk radio) that the Democrats want to scrap 401(k) plans altogether. I guess the theory is that by encouraging irresponsible people to buy more HD television sets or whatever rather than saving for their retirement, this will stimulate the economy and generate immediate additional tax revenue for Obamacare or whatever. Color me skeptical about whether this rumor is true, but just think of what a mess this would create years down the line.

[dalebert]

i think mc cain did alright tonight. just needs to pound more against the 4 more years and that obama will destroy the country with his bad tax plan. and job creation. obama will take your money and your jobs.