MARKETS DEMOLISHED (-417): Here's What You Need To Know

TBI ^ | 8-18-2011 | Joe Weisenthal

[blam]

MARKETS DEMOLISHED: Here's What You Need To Know

Joe Weisenthal
Aug. 18, 2011, 4:00 PM

The panic is back after taking a 5-day rest.

But first, the scoreboard

Dow: -417.66
NASDAQ: -129.24
S&P 500: -53.02

And now, the top stories

The story of today is a continuation of a global panic that's been in place for weeks now. On Monday, stocks completed the third day of the biggest three-day rally since March 2009. Then in the middle of this week, stocks basically did nothing. And now, it's back to panicking.

Mostly it started in Europe once again, though even yesterday evening the weakness began. Some weak after-the-bell tech stock reports helped sent the futures drifting lower.

Asia was weak, and then European markets went kaboom.
A story about the Fed meeting with European banks over funding concerns that appeared last night caused a lot of worry. Other than that there wasn't even that much news, although the market's hunger for a solution to the perpetual crisis grows louder by the day.

Perhaps the most ominous new fire in Europe is this situation where various countries who will be bailing out Greece are demanding collateral for their loans. It started with Finland, but if everyone does this, it's going to kill the whole thing.

Obviously the broader European markets got demolished, with European banks taking the brunt of the pain.

Things were already very ugly in the early going in the US, and then the data really brought the pain. CPI came in hot and initial claims came in somewhat weaker than expected. If Bernanke's hands weren't already tied, with respect to more easing, now he's even more in a corner.

(snip)

[blam]

DJIA Down 419.10

[blam]

[TexasFreeper2009]

I lost a ton on Intrade today :( I figured it would recover back above 300 before the close... boy was I wrong.

[NormsRevenge]

We need a study to isolate the panic trader gene in folks.. and ban trading by those who have it.. of course there wouldn’t be many left, but.. I could do it for 10 million a year in 20 years or so. ;-)

[bicyclerepair]

Thanks FReepers. Reading your comments is enlightening. (kinda like the company you keep asset etc.) Even though I read FR often, I wish I had money to donate. The hope and change has been devastating to my family. I have never had a problem finding a job before. Now I’m in over 2 yrs of ‘change’.

Can we change it back? see tagline

[blam]

[ken5050]

Will Obama cut his vacation short?

[blam]

[GonzoGOP]

Will Obama cut his vacation short?

For a 400 point drop, no way. Now if you can put four or five of those together you might actually get "The One" to notice.

[TexasFreeper2009]

My brother in law who was high school valedictorian then graduated #1 from a top tier university and then again graduated at the top with his PhD was unemployed for over a year after Obama took office. He finally got a decent job about 6 months ago.(completely out of his field though, and he had to move to a different state)

That totally freaked me out. Thank god I am self employed.

[Presbyterian Reporter]

The markets are pretty much saying they have no faith in Obama to turn things around and maybe the markets are also saying that Obama will make things even worse.

Obama has done a lot of damage in the first 32 months and he has 16 months to go.

[Osage Orange]

Norm....when my stops hit. They hit. Nothing panic about it.........

[Osage Orange]

Hope isn’t and has never been a plan..........

[exit82]

Unfortunately, come Saturday, he has 17 months to go.

[chimera]

Why should he cut it short? My suspicion is he is okay with it, things are going according to plan (remember the thing about “fundamentally transforming America”, or something close to that?).

[isom35]

no, both he and his handlers are happy and carefree.

[NormsRevenge]

got it.. too bad our gubamint didn’t do the same..

Thanks!

[tumblindice]

We may be losing our a**e*s but the important thing to remember is Obama & family are getting a much deserved vacation and eating the milk-fed, massaged hindquarters of penned, young beeves.

[New Jersey Realist]

His nothingness has told us that the DOW goes up and down - nothing to worry about.

[IDontLikeToPayTaxes]

My brother in law who was high school valedictorian then graduated #1 from a top tier university and then again graduated at the top with his PhD was unemployed for over a year after Obama took office. He finally got a decent job about 6 months ago.(completely out of his field though, and he had to move to a different state)

Employers aren't willing to pay somebody with those credentials what they're worth. At his level of education and experience, people get placed in jobs through pure networking, i.e., the good old boys club.

Twenty years ago, a guy with that background and education could easily get a job. These days, an employer will simply hire somebody with half the experience and education for half the pay.