Panic: S&P down over 6%, Dow down over 5%

Bloomberg Terminal | 10/6/08 | Me

[Thane_Banquo]

Looking at hugh panic in global mkts right now. This is vey series.

Australian dollar off almost 8.6% on the day against the USD. One bank said they are seeing literally NO BIDS in the Australian dollar, which is huge considering that you can usually trade several million with the click of a mouse.

[Leisler]

Speaking of which, where has Mitt been the last month? (I’ve been asking that question on FR for a month, and have not gotten one single response.) You would think the self styled Master of Business and self made millionaire in finance would be prominent. Even his experience with ‘bailouts’.

[Petronski]

Buy the rumor sell the news.

[ari-freedom]

not if obama carries out his liberal plan

[kinsman redeemer]

mm

[nicola_tesla]

Volume does not yet indicate capitulation.

[ari-freedom]

works both ways. markets are very efficient which is why govt shouldn’t play around with them so much.

[Leisler]

I know very well know that. Mitt is from a liberal family, was liberal, and the last year or so has been talking the conventional institutional Republican clap-trap of being a big spending Republican with a occasional mention of some minor tax cut. Boob bait for Republican Bubbas.

By the way, it looks like Buffet's coordination with Pelosi has made him a few billion in the last week or so. Nice.( for him )

[DannyTN]

Thanks for the chart. I was hoping someone would put one up to debunk that claim.

[tatown]

Where do you see the economy ending up (ie unemployment rate, duration of downturn, etc)?

[Notary Sojac]

It's clear to me most freepers don't understand banking or the economy.

I understood exactly where the economy was going four years ago. Unlike our Secretary of the Treasury who decided to milk the credit bubble for every cent it was worth before he started whispering "crisis".

[brydic1]

Those Freepers that could not but believe that George W Bush was a great conservative and would not let this crisis happen are being shocked out of their money and will undoubtedly be shocked out of a lot more of their money. They believed the Bush, Paulson, Limbaugh, Hannity, Kudlow, insanity that everything was really OK and there was nothing at all to worry over. All the while it was repudiation of conservative values by Bush et al that have caused this catastrophe. This depression we are about to descend into, thy name is Compassionate Conservatism. There is no difference between Compassionate Conservatism of the republican variety than Socialism.

When true conservatives tried to warn of this disaster that has now occurred, we were consistently maligned and ridiculed as “gloom and doomers". Those that refused to heed the warnings and did not sell this market beginning this spring are paying the price for their ignorance. I feel great sorrow for what is about to happen in the US in the next 5 to 10 years. But somehow, I do not feel any sorrow for those who chose to ignore the warnings that were freely given by fellow Freepers. George Bush and his Rino compassionate conservatives have led this country into a true disaster. Much more serious than Pearl Harbor because we have not the financial nor moral wherewithal to counter this disaster.

[expat_panama]

you feel a bit removed from all this gloomy news

It's always a good idea (imho) for a trader to be very far from Wall Street --both physically and psychologically, because the mob mentality can be overwhelming.   My personal money situation got insulated about a month ago when I went 100% cash --Investor's Business Daily; never leave home without it!

[Sopater]

Well like it or not that is the choice we have had since 1992

As long as you continue to vote for them, you can expect that things will not ever change. With the exception of keeping America safe since 09/11/01, the Republicans haven't done us much good by growing the gov't in record amounts over the last 8 years.

[BlazingArizona]

I TOLD YOU SO: Last week, the market was dropping not because it thought a bailout was uncertain, but because it looks 6 to 9 months ahead and sees credit and jobs drying up for an extended period of time. Basically, no business is going to sell anything for the next year. Investment advice: go for strict necessities like utilities and big box grocery.

[XR7]

EMERGENCY!
EMERGENCY!
We need a $700 bailout!
We need it now!
We'll load it down with pork to make it go down easy!
(But we don't know if it will work - but we need it now!)
No, I did'nt read the whole thing - but I'm all for it!

"And, I signed it!" -- G.W. Bush

[NVDave]

Unemployment is headed for 7% within the next year. Case-Shiller housing index is headed down at least another 5%. Oil will be under $80 sometime this coming year. It might bounce around above 80 for awhile, but if the sell-off in commodities is any indication of how rapidly money is being pulled out of the commodities markets, oil can’t help but come down too.

For all those people who said “speculators aren’t the cause of oil prices!” - uh, care to explain why oil has crumped so rapidly this autumn, yet demand for finished products and inventories don’t indicate this level of price drop is warranted? The EIA data still shows finished stock investories near the low side of the band of average stocks. Crude supplies are picking up a bit, but it isn’t because demand has slacked off.

What you’re seeing are hedge funds pulling out of commodities as fast as possible. Ag commodities are selling off like crazy - and farmers are wondering “Hey! WTF?” because they’re not seeing fundamentals that justify these price swings.

So for all those people out there who were chanting “speculation isn’t the cause” — care to offer an opinion as to why commodities have sold off so hard since July? Other than hedge fund de-leverage, that is. I wanna hear about fundamentals causing this drop in commodity prices.

Duration of the downturn: very hard to say. A lot depends on if, how, when the financial sector is repaired. If the job were being done properly (which it isn’t here), we’d be looking at two+ years before you see a real upturn in investment.

[ari-freedom]

as for all that talk about michigan because of his father. George Romney was the ultimate RINO. we need to get away from these country clubbers

[sam_paine]

Index Value: 9,834.20

Trade Time: 12:26PM ET

[expat_panama]

hoping someone would put one up to debunk that claim

It's good that we can all see the same reality whenever possible; of course, neither of us are expecting the facts to change anyone's mind though...

[FReepaholic]

...Stock futures can be manipulated short term. Forex markets like the australian dollar versus USD are way, way too big for any one player to manipulate...

The LIBOR rates went sky high right after the "bailout" passed. Those don't go up all by themselves. Somebody raised them.