6-26-02 Wall street watch

[newsperson999]

It's going to be a long day folks, Worldcom has the market on edge. Overseas markets were down 2-4% and the Dow futures are off by 225 right now.
New Worldcomm Fraud forum here click

[StockAyatollah]

"Value" Players buying or shorts covering. I think we have further negative territory to discover.

[Huck]

well, like I always say, what do I know?

[DJ88]

I haven't talked to my brother, either. I usually see him online, but he's not online today.

Dow's -172 again.

[Woodman]

Those are the old numbers. I'm not sure of the new ones, but I think the first pause is at about -500, there may be a freeze on automated trading at a smaller loss.

[Night Hides Not]

Well, the market mavens have been pounding the drums for a blowoff event, to set the stage for the next rally. This may be the trigger that they were looking for.

Then the next question is: how low do we go before the rebound does start? My no-longer-educated guess is NASDAQ 800 and DOW 6300, i.e. another 40% downdraft on NASDAQ, and 30% on the DOW.

Here's to hoping the SEC and the Bush Justice Dept goes after the lawbreakers. Sending these corporate criminals to hard time is the medicine needed to cure this cancer.

This is a result when ethics no longer matters, and 'it's just about sex' in the Oval Office.

[DJ88]

I believe that the Justice Department has already begun an investigation into WorldCom. Let's hope that those like Bernie Ebbers, who resigned a couple of months ago, and the CFO that was fired yesterday, spend some time in jail.

[Frapster]

My no-longer-educated guess is NASDAQ 800 and DOW 6300, i.e. another 40% downdraft on NASDAQ, and 30% on the DOW.

I seriously cannot imagine that this would occur... not unless there really are "nine other Enrons/WorldComs" out there. But 6,300 won't be reached on Enron/WorldCom alone... will it? *fidgets nervously*

[cajungirl]

I hate to be a pollyanna with so much breast beating but I think the market will drop and start back up. I think the dishonesty is limited to a few high flyers and is not pervasive. The world political situation weighs more heavily in my mind. Soon as we invade Iraq or get Osama, the market will go right back into bull action. Or maybe I am just trying not to deal with the heavy losses we have taken.

[Dog Gone]

there may be a freeze on automated trading at a smaller loss.

Curbs come into effect with a 200 point move. There is a pause (an hour I think) with a 500 point move, and I think a complete closure with a 10% move.

[p. henry]

To the extent they profited through options or bonuses, they must also be forced to disgorge those profits.

[jpl]

I seriously cannot imagine that this would occur... not unless there really are "nine other Enrons/WorldComs" out there. But 6,300 won't be reached on Enron/WorldCom alone... will it? *fidgets nervously*

IMHO, every major corporation that used AA to do their accounting in the last few years is going to get investigated. And I'm guessing that's a lot more than just nine other companies.

[antivenom]

YES...and headquarters for WCOM is in Clinton, Mississippi...

[Jethro Tull]

I suggest we'll see major congressonial oversight (re: corporate accounting practices).

Also, Bush's privateization of social security is DOA.

[anniegetyourgun]

I think your estimates are probably pretty good, nhn. And DJ is right in his/her post - DOJ has already announced investigation.

[anniegetyourgun]

Truth is stranger than fiction, eh?

[kinghorse]

It'll get better when the first of the CEO's get carted off in chains. Wait for that sign to buy.

[Night Hides Not]

Like I said, my guess was not educated, and I don't mean to be a doom and gloomer. To get to 6300, it will take much more than Enron/WorldCom, to be sure. Therein lies the rub...does anybody really believe that it was only Arthur Andersen advising their clients on how to cook the books?

Unfortunately, speaking as a CPA, I fear that other shoes are waiting to drop (from the 50th floor).

[Huck]

just more of the CLINTON LEGACY -- everything Clinton built on was lies -- HYPE, HYPE, HYPE. Now the "Bill" has come due.

Seen this?

Democrats target corporate abuse... Will voters punish pro-business GOP?

The Dems have the jump on it.

[Huck]

just more of the CLINTON LEGACY -- everything Clinton built on was lies -- HYPE, HYPE, HYPE. Now the "Bill" has come due.

Seen this?

Democrats target corporate abuse... Will voters punish pro-business GOP?

The Dems have the jump on it.

[newsperson999]

WorldCom debt estimated around $30 bln CLICK