Posted on 02/27/2009 3:22:50 PM PST by quesney
A late burst of selling sealed a dismal finish for the stock market, which hit a fresh 12-year low on Friday as Citigroup sold a bigger chunk of itself to the government and General Electric slashed its dividend, spooking investors who were already jittery.
The Dow Jones Industrial Average dropped 119.15 points, or 1.7%, to end at 7062.93. The blue-chip benchmark ended down 937.93 points, or 11.72% on the month -- the worst percentage drop since 1933, when it fell 15.62%. The Dow industrials have fallen six months in a row and are now more than 50% off their record highs hit in October of 2007.
The S&P 500 fell 17.74 points, or 2.4%, to 735.09. Its financial sector dropped 6.5% and its health-care sector sank 4% on fears that President Barack Obama's reform plans will carve into the profits of drug makers and insurers. The S&P is off 53% from its October 2007 peak and has now seen its worst six-month drop in percentage terms -- 42.7% -- since 1932.
Many market veterans now expect the market to continue such a slog in the days ahead, with both new lows and short-term rallies likely.
Thirty-six companies in the S&P 500 have cut their dividends since the mid-September meltdown of Lehman Brothers Holdings marking the start of a full-blown financial crisis that has since tightened its grip on the global economy. That pace of reductions appears unprecedented over any three- or four-month period, with more cuts likely on the way, said Ashwani Kaul, research director at Thomson Reuters.
"If anything, I would expect the pace to pick up over the next few months," he said. "Let's face it, these companies are doing whatever they need to preserve their capital."
----- Thank you, Messiah. All Hail.
(Excerpt) Read more at online.wsj.com ...
Look for DJ to break even more records - BAD ones.
“Change you can believe in”
“There is a good chance that Zero has scared the golden goose to death.”
It’s laying aborted eggs, at best.
Which is what Obama wants.
Everytime we reach a rally point, Obama opens his gob, or the feds do someting to destroy market confidence further.
All a part of the Saul Alinski plan.
I love how in the midst of a financial collapse and recession, Obama had no reservations whatsoever about proposing $4 trillion in spending, a $1 trillion income tax increase, a capital gains tax increase, and a cap&trade energy tax.
Unbelievable, this guy.
Yes, we’re f-——d. No question about that.
The way I figure it, with the Dow being at 7,000 now and losing roughly 200 points a day, they should hit the Democrat Party goal of the Dow at zero in approximately eight weeks. Then they can set up their real agenda once everyone’s worth is zilch.
Then the government will declare the dollar worthless and insolvent, replace it with a new currency (the “Amero”?) and welsh on their debts to the rest of the world (the reason they are spending so recklessly now).
Martial Law will be in place by then and Obama’s gestapo will enforce the Leader’s will in matters great and small until we all become conditioned to Soviet-style life under the Democrats.
That’s our future unless somebody steps up to stop it.
The golden goose has already been cooked and served to the non-producers. No more eggs for you.
“Unbelievable, this guy.”
I believe him.
So does the market.
The man is an idiot.
Egg Nazi!
Look at the bright side.
And when you find it link me to it....
Our planet will be saved at the cost of the freedom of individual humans.
Isn't it worth the suffrage?
Oh, and "screwed" is the word you are looking for.
Anyone says this isn’t Obama’s economy, they’re FOS!
Even though Bush43 took very little action in the first month of his Presidency, the liberal establishment was attacking the new adminsitration in early 2001 for the economic downturn that resulted from policies of Bill Clinton.
Obama took office and in one month became the most fiscally irresponsible President in history.
Worst month since FDR was President? I am beginning to see a pattern here.
And claim to be a tax cutter to boot.
What is wrong with the public as a whole by accepting this politically?
The next best thing to a "peanut farmer" out of place.
Now, you don't really think he's doing this on purpose? On the other hand, if this was his goal, what would he do differently?
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