Posted on 03/02/2009 9:03:40 AM PST by tcrlaf
The Dow Jones Industrial Average hit its lowest level in 12 years, slipping below 7,000, and then 6,900, as investors grew increasingly skittish over the state of the stock market amid the wave of government bailouts.
The Dow Jones Industrial Average dropped more than 200 points, or nearly 3 percent.
The S&P 500 continued its descent toward 700, while the Nasdaq dropped below 1,350.
The Nasdaq suffered the least of the three major indexes as Intel and Dish Network provided a few glimmers of hope amid the wreckage.
Major U.S. Indexes.DJIA6827.57-235.36-3.33%946,324,000.NCOMP1336.68-41.16-2.99%318,253,300.SPX707.24-27.85-3.79%2,318,764,800
And, while some investors thought the selling was coming to a close, it can get worse from here, Art Cashin, director of floor operations at UBS, told CNBC.
"You're beginning to hear people get a little more despondent as this continues to sell day after day," Cashin said. "There's a growing sense of frustration about not quite being in control here — Not knowing where the next shoe in Imelda Marcos's shoe closet is," Cashin said.
He pegs the next key level at 700 in the S&P.
Financials led the broader decline as another government intervention scared the market.
The big bailout news for Monday focused on American International Group, which reported a $61.7 billion quarterly net loss, after the government was forced to pump billions in fresh capital into the insurance giant — the third such cash infusion.
The $30 billion bailout provided a stark reminder that some of America’s biggest corporations are still in a critical condition.
Shares of AIG [AIG 0.48 0.06 (+14.36%) ] gained sharply following news of the capital injection and earnings.
But the climate of uncertainty continued to spread havoc through the market, particularly in financials.
"The market has yielded on so many support levels here and I think there's a level of emotional despondency starting to build," Art Cashin, director of floor operations with UBS, said on CNBC. "We may start to talk about capitulation here."
Excellent point.
Or better yet is RAISE CORPORATE TAXES, IMPOSE A CARBON TAX, MANDATE HEALTH CARE, THEN BUY OUT THE ENTIRE STOCK MARKET FOR A FEW TRILLION IN THE NAME OF RESCUEING THE US ECONOMY. Karl Marx would be proud.
I’m in the same boat you are, but there really is no safe place for your money right now.
I’m in treasuries, gold, and platinum, and the family trust has been buying repo’d properties around our home town for rentals. Even if property values decline, this is where we live. And we’ll survive.
DOW 6825.9 -237.03 -3.36%
You have to hand it to them, it really is a master stroke. Instead of the normally messy activities associated with nationalization/confiscation, like shooting people, gulags, etc, they're simply going to acquire the means of production by purchasing them!
Why everyone cheers the dropping Dow as if it's some indictment of Hussein is beyond me. It just shows how much smarter their team is than the pathetic roster of conservatives.
There is the fly in the ointment. They are working for their own self interest. We are just the mules that have to finance their skewed view of the world. Protecting us is the last thing on their minds. Witness the treatment of the military, the border and the business segments.
Historically, times like these it is the best financial move, to buy material assets like real estate property that is likely to retain it’s value. (Not in the middle of East L.A.)
But my broker, very sharply cautioned me on buying treasuries right now. Particularly because the government is borrowing money to spend what it does not have.
Stagflation is right around the corner, then deflation, and finally runaway inflation as interest rates go into the double digits.
We have had a “CHANGE.” The DOW used to be twice that. ALSO
THIS is what we had in ‘06 when dim-0s were running for control of congress promising “CHANGE.” How’re yall liking the “CHANGE?”
2006 unemployment #s
4.7...jan.
4.8...feb.
4.7...march
4.7...april
4.7...may
4.6...june
4.7...july
4.7...aug.
4.5...sep.
4.4...oct.
4.5...nov.
4.4...dec.
http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?data_tool=latest_numbers&series_id=LNS14000000
AND........................
When Republicans had both houses and the WH..........................
http://www.icmarc.org/xp/rc/marketview/ ... oduct.html
The 1st quarter of ‘06 saw 4.8% growth in GDP. Then came dimos running for control of congress promising “CHANGE.” They won, and after 2 years in power, things HAVE “CHANGED” GDP growth is now - 6%. Happy with your “CHANGE?”
What goes down must come up. Relax, stay in. It really sucks if you were planning on retiring later in 2009, though.
More Hopey Changey!
I’m going to invest in Cuban real estate and stocks... it will be a better bet than the Zerobama stock market.
The below statement is from an analyst Friday before the S&P closed at 735.09. Today will be the 2nd day below 740...I wonder what hills he's headed for?
"Only on a two-day close below 740 will I run for the hills. A close over 740 today would be considered a successful test of the November 2008 low," said Elliot Spar, market strategist at Stifel Nicolaus. "
Of that you can be fairly certain.
People that have money in the stock market are to smart to believe the Obama BS!!
About a week ago ?
Or 04-11-08 ?
.. when ya got nuthin, ya got nuthin to lose ..
Enough folks singin' that tune and SHTF breaks out
The Communist Revolution in America!!
Thanks for posting that graph.
Damn, I never even considered that aspect.
And it also does wonders for his ability to wage war on the middle class. Consider this.
Dow drops to 4000. 401K's and pensions funds wiped. People run to treasuries. THEN the Feds fireup the printing presses to inflate the dollar and inflate out of the debt. Those locked securities are trashed.
What W and his lieutenants Paulson, Cox and the rest really disappointed me though. As nominal REPS I expected much more from them on this score. The way they managed Trade, Monetary/Fiscal Policies, Immigration, management of the post Sadam Iraq and a host of other things severely disappoint me and are barely distinguishable from what the Dems would have done. As for the DEMS, they are doing what they always do, capitalizing on the Reps to take control and make things worse. And they will get worse from here despite how bad things seem right now.
By the time I get the last card paid off this year, I will be able to re-evaluate a savings strategy, and that might just include cash in a safe deposit box, or some other such indestructable place. At least I will come out of this recession/depression with an intact high credit rating, I'd bet at least two-thirds of my fellow Americans are not going to be able to make that claim.
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