Posted on 05/06/2010 4:23:24 PM PDT by blam
Stock Market Panic Dow Crash 1000 Points Before Fed Steps in to Buy
Stock-Markets / Financial Crash
May 06, 2010 - 02:56 PM
By: Nadeem Walayat
The sovereign debt crisis shock waves emanating out of Greece triggered a stock market Free fall crash today as the Dow sliced through support after support to all the way below Dow 10k, hitting a low of 9,872 before the Fed as part of the Plunge Protection Team (PPT) stepped in to halt the panic selling and triggering an equally phenomenal a 700 point reversal less than half an hour from today's close.
The imbecilic banking sector led the collapse in stock prices as a consequence of the sectors huge exposure to subprime government bonds such as the Euro Zones PIIGS that continue to slump in the face of a defacto Greece Debt Default.
The stock market rally has been in an increasingly weakened state as it entered the window for a significant correction that was forecast to occur between early and Mid May (23 Mar 2010 - Stocks Stealth Bull Market Trend Forecast Into May 2010 ).
My weekend analysis (02 May 2010 - Greece Debt Crisis Storm Cripples Stock Market Rally Resulting Stock Price Churn ) concluded that the crippled rally which just managing to hang onto support at 10,974 at the time was less than 40 points from the SELL trigger of 10,970 (there had been NO Sell trigger triggered since late Feb 2010) which would initial target a trend to 10,750 and then 10,550. Both of those levels went up smoke in today's panic stock market price action which demands in depth technical analysis that will follow this weekend, preceded by yesterdays fundamental analysis on the sovereign debt crisis emanating out of Europe's Achilles Heel (05 May 2010 - Greece Economic Depression Resulting in INFLATION NOT DEFLATION Surge ).
Your Analyst hitting the Buy Button on BP Stock and looking for other bargains.
“Before Fed Steps in to Buy...”
That’s the tale The Washington Post started during the Reagan era about the ‘Working Group on Financial Markets’, aka ‘the plunge protection team’.
Thank you. That was an interesting read.
I just learned about it today myself.
That depends upon what brand of foil you use to make a hat.
It’s illegal for the gov’t to intervene in the market and buy stocks. But the Working Group probably makes some phone calls to encourage someone to buy.
it is a stealth approach to socialism.
it is a stealth approach to socialism.
Now I learned something. I will not read the market oracle articles anymore.
Because this article is lies and propaganda.
“Using tax dollars to buy stock???? Is this a stock market bailout?”
been doing this awhile now.....
you didn’t know?
This article is pure BS. It comes out of Britain and written by an Arab. What more is there to say?
The Fed set this up after the 87 crash. It has been in place since then I believe.
More from the UK Telegraph.. http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/2782157/Bush-convenes-Plunge-Protection-Team.html
Thanks. Ambrose Evans-Pritchard is an interesting bird.
He covered all things White Water for the Telegraph back in the 80s.
At one point I remember talking to someone about whether he was a plant or not. I’ve never been real sure about him. He’s pretty good at times, and then at times I sometimes wonder about him.
Good. And thanks again for the links.
Yup, he was defiantly harsh with Slick Willy and wrote “The Secret Life of Bill Clinton” (1997) which was published by conservative publishing firm Regnery Publishing
One thing is certain. Today’s market plunge was no trading glitch.
World wide markets are sliding.
Reagan wasn’t perfect.
And I thought gold was over priced at $800 the oz. LoL
Of course brass and lead will trump gold every time.
No, but he is as close to it as I have seen in my lifetime.
Which scares the hell out of me.
The way things are going there could be a world war.
It's happened before.
I never thought I would say this, but Ron Paul may be right about our interests getting too entangled with that of other nations.
I hadn’t stopped to notice, but it doesn’t surprise me. That hickup on the NYSE wasn’t for nothing.
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.