DJIA Down 349
Posted on 06/20/2013 1:14:27 PM PDT by blam
ALL GLOBAL MARKETS GOT SHREDDED: Here's What You Need To Know
Sam Ro
June 20, 2013
No one was safe today.
First, the scoreboard:
• Dow: 14,758.3 -353.8 -2.3%
• S&P 500: 1,588.1 -40.7 -2.5%
• NASDAQ: 3,364.6 -78.5 -2.2%
And now, the top stories:
• Stock, bonds, commodities, and currencies around the world got destroyed today."Rare to see every futures market I follow down," tweeted bond trader Ed Bradford. Today's drop in the S&P 500 was the worst one since 2011.
• Today's calamity was really an extension of yesterday's sell-off, which appeared to be triggered by comments made by Federal Reserve Chairman Ben Bernanke. Specifically, he said that the Fed could begin to taper, or gradually reduce, its quantitative easing program as early as later this year. In other words, they would be scaling back on their monthly purchases of $85 billion dollars worth of mortgage bonds and Treasury securities.
• This sparked a sharp sell-off in the bond markets, which translates into higher interest rates. Earlier today, we saw the 10-year rate go as high as 2.47%, a level we haven't seen in years.
• The next big devastating headline that crossed was that manufacturing activity in China decelerated more sharply than expected in June. This is worrisome because China is the world's second largest economy and also it's most important source of economic growth. "A good deal of the weakness was apparently driven by external developments as the new export orders index plunged 4.9pt to 44.0, the lowest reading since the middle of the Great Recession," said Societe Generale's Klaus Baader. "This collapse is quite difficult to fully believe, given developments in the region and the global economy, where there are no signs of such a collapse of demand."
• Commodities
(snip)
(Excerpt) Read more at businessinsider.com ...
DJIA Down 349
My name is Mr.Bubble and you can watch me pop!
The bubble popped a long time ago. If you force enough air pressure through it, you can keep it from collapsing completely.
What they did yesterday was tell everyone they need to take a breath soon, so expect the broken balloon to contract.
Everyone panic right on cue... It’ll distract from the mess the Feds are making of things EVERYWHERE else if the markets crash.
Nothing to see here. ‘Helicopter Ben’ will fly over the markets in the morning and sprinkling magic Unicorn manure and the markets will be up 300+ by this time tomorrow!
Goldbug ping.
I’m 100 percent in cash. Higher interest rates sound good to me.
No worries.....Chairman Geithner will re-start the pumps and the presses....
Ditto
I would love to get a decent return on my savings. The old 5% passbook savings account sounds like a beautiful dream now.
There was some speculation on the Cavuto show as to whether Bernanke made his tapering remarks yesterday to get even with Obama for firing him on television, as he knew the markets would react.
I am curious how Japan market going open up later on tonight eh Blam
What, you aren't happy with 0.005% interest? ;-) and then ;-(
Yeah, we’ll get 5% interest again, with 20% inflation...
You guys enjoy your 2pct interest, and meanwhile, I’ll buy some more good dividend stocks.
Whatever statements Ben Bernanke may have made yesterday, they’ve turned out to be the financial equivalent of yelling ‘’Fire!’’ in a crowded theater.
He created a panic, and everyone ran for the exits at the same time, creating financial casualties all over the place, which is the last thing a Federal Reserve Chairman should ever do.
Now we need someone to calm the markets, but Gentle Ben who’s turned out to be a bull in a china shop, is definitely not to the one to do it. So what will happen now?
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