Posted on 06/09/2010 2:02:19 PM PDT by markomalley
NEW YORK (MarketWatch) -- A rally in U.S. stocks fizzled out late Wednesday after German Chancellor Angela Merkel said the time has come to withdraw stimulus.
The Dow Jones Industrial Average was down 29 points, or 0.3%, to 9910, falling below the psychologically important 10000 level. The measure spent much of Wednesday's session above that level. But it pared some gains after the release of the Federal Reserve's "beige book" report and then quickly fell through 10000 as Merkel defended Germany's EUR80 billion austerity package for the next four years, saying Wednesday that the time to withdraw government stimulus has come and lessons from the debt crisis must be learned.
Merkel's comments that the bailout package only buys time for the euro zone spooked the market, investors said. Coming from Germany, considered the strongest economy in Europe, the remarks highlighted the euro zone's problems.
(Excerpt) Read more at marketwatch.com ...
(EPA amendment vote tomorrow, full on attack on drillers also all reflected in the drop).
27 points. By my calculation, that’s just over a quarter of a percent. I’m not gonna set my hair on fire yet.
There is, of course, a certain irony that Merkel’s common-sense statements actually cause the markets to go haywire. I guess that’s good support for the idea that the stock market today is indeed the financial equivalent of NBA basketball: heavily steeped in fantasy, fakery and collusion.
This after Ben Bernanke said the economy was improving?
Get ready for an enormous global hangover.
Everyone knows that everyone is lying...to themselves, to each other and to everyone else. And everyone knows they’re doing it so that it won’t be them that the celebrity media blames for tanking everything. So we’ll all nod and wink happily off the cliff, hoping that at least we land in softer water rather than harder rocks.
It’s amazing how ‘the markets’ just LOVE all of this reckless government spending, AKA: “Stimulus”. It only makes things worse in the long run, but they fail to recognize it.
Most of those people apparently can’t see past their noses.
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.