Posted on 08/08/2011 1:19:58 PM PDT by NoLibZone
The Dow Jones industrial average plunged as much as 600 points midday Monday as the market rout continued in the first day of trading after Standard & Poor's downgraded the United States' credit rating.
Investors have piled out of stocks all day and into a few safe havens, such as gold and Treasury bonds. The appetite for Treasury bonds suggests that the Standard & Poor's downgrade of the U.S. has not shaken the faith of investors in U.S. bonds.
Market experts said that the market selloff on Monday was sparked by the S&P announcement, but is more motivated by growing concerns about the weakness of the global economy.
"It’s really all about economics," said Mike Norman, the chief financial strategist at John Thomas Financial.
The Dow was recently trading down 536.18 points, or 4.7%, at 10908.43, and is on track to have its worst day since December 2008. The broader Standard & Poor's 500 index was down even more sharply, 68.49 points, or 5.7%, to 1130.89.
"It's been harried," said Sal Arnuk, the head of Themis Trading, which has its trading floor in Chatham, N.J. "We have been busy this morning."
The concern about the U.S. credit rating was amplified when Standard & Poor's announced Monday morning that it was also downgrading the debt of mortgage giants Fannie Mae and Freddie Mac, which rely on U.S. government guarantees. But traders said that much of the pessimism on Monday was a result of broader building concerns about the economy.
(Excerpt) Read more at latimesblogs.latimes.com ...
Anyone else remembr McCain and Hugh Hewitt saying tarp was necessary because of the 600 Dow drop?
Now what?
Agreed...
Yeah, that’s about it isn’t it.
So you're saying the LA Times would make up a story about how much the Dow was down for the day? Was the tin foil index up today?
yes, agree two choices.
i go with rush limbaugh and #2.
a deliberate sabotage of the world’s greatest capitalist country.
if obama doesn’t get a second term, it may not bother him if
he gets to slash and burn as much as possible.
I agree with you and Rush, if that is what Rush is saying.
He WANTS our economy to collapse.
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.