SubscribeShocker: Dow Drops, Then Gains Most Back
From an ever hopeful Associated Press:
Dow drops 465 then gains most of it back
By MADLEN READ, AP Business Writer
NEW YORK - Wall Street struggled to steady itself Tuesday, climbing back from an early plunge after the Federal Reserve cut interest rates in hopes of restoring stability to a faltering U.S. economy. The Dow Jones industrials, down 465 points at the start of the session, recovered to a loss of about 175 points.
The U.S. markets joined a global selloff amid growing fears that a recession in the United States could send economies around the world into a downturn…
Analysts saw little, if any, optimism driving the market, particularly since Tuesday’s drop followed months of losses on Wall Street.
“Sometimes market bottoms are not made by specific events, but by exhaustion,” said Peter Boockvar, equity strategist at Miller Tabak.
Stocks have plunged, with frequent triple-digit drops in the Dow, as investors took in a stream of weak economic data and reports that financial firms had lost billions of dollars due to the housing and mortgage crisis. With the housing and credit markets unlikely to turn around soon, and more disappointing economic news expected, investors were likely to keep shying away from stocks…
It can take months for an interest rate cut to work its way through the economy. In the short term, it makes borrowing cheaper, but the billions of dollars in failed mortgages over the past year have made lenders wary of writing loans to almost anyone — consumers or corporations. And the heavy losses that banks and other financial institutions have suffered have raised questions about their stability.
Some analysts were waiting to see what else the Fed would do.
“It’s just not enough yet. The Fed has got to do a lot more than just lower rates. They’ve got to inject more liquidity,” said Harry Clark, president of Clark Capital Management in Philadelphia…
The media just can’t stand it.
They want their recession. They need their recession.
And by God they will have their recession.
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12 Responses to “Shocker: Dow Drops, Then Gains Most Back”
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January 22nd, 2008 at 4:51 pm
ON CNN today there was a poll that said “do you think we are in a recession?”
Call me traditional but isn’t a “recession” a scientifically proveable event that WE ARE NOT IN. I believe it is two consecutive quarters of negative GNP or GDP growth. Which has not happened. Majority of the voters said “yes”.
Just goes to show how stupid most people are.
January 22nd, 2008 at 5:13 pm
from cnn.com
Do you think the U.S. economy is in a recession?
Yes 74% 117590
No 26% 40878
January 22nd, 2008 at 5:17 pm
Of course that would have been a convenient time for CNN to try to actually educate the public and present the definition of a recession.
But that’s not their job.
Anyway, I’m looking forward to their poll: “is the moon made out of green cheese.”
After all, it’s just as unknowable a question as what constitutes a recession.
January 22nd, 2008 at 5:25 pm
I was so excited this morning, with all the emails telling me how bad things were going to be on Wall Street today. I had several put positions and thought they would do well .
Not so, my put positions actually lost ground today, only my calls did good. But still it was a good day with several of the calls up sharply. One thing I have noticed, what ever the so called experts tell us, most times it will be wrong.
January 22nd, 2008 at 7:10 pm
“Just goes to show how stupid most people are.”
One half of a Normal/Gaussian population are below average, I say again.
January 22nd, 2008 at 7:16 pm
A year from now maybe we’ll have a democrat like FDR who can get us out of a recession/depression in say ten years if we can get someone to attack us again.
January 22nd, 2008 at 7:27 pm
Of course it is a CNN poll.
If they asked “Do you think President Bush is responsible for the subprime lending mess” I bet you’d see roughly similar numbers.
January 22nd, 2008 at 7:42 pm
In the long run, markets behave like water, they will find the level that reflects the entire economy. In the short term, speculation and fear can result in market fluxuations.
Rest assured, the media will fuel the fear with plenty of negative stories to keep the waters roiled until a socialist is elected to calm the waters, and drown us all.
January 22nd, 2008 at 7:56 pm
I am happy this discussion is in progress. The democrats and their faithful minions of the “free” press lost alot of ground with the bash George issue, then the real egg was on their face with the success of the troop surge. Now, they are hammering the economy. They need something because there is nothing else for them to offer up simply because socialism isn’t a real good platform to run on in this country. It does concern me how easily folks are swayed by the media. Our media, along with those wonderful people from the BBC, scares the hell out of me. Why is it so hard for the rest of the country to see what is going on? Why do you think there was such a fight to make Al Bore president? Ol’ dubya put a real kink in those plans and it really pissed off the media and SOROS(asswrench).
January 22nd, 2008 at 8:09 pm
The media could be reporting on something that matters, like the wholesale slaughter of native Africans by the ruling Muslims in Darfur, but that would be politically incorrect because they are “Muslims”. Or how Muslims are taking over Thailand via the south. Or how there are forced conversions in the UK or …etc etc
January 22nd, 2008 at 8:35 pm
Oh and anyone notice how the MSM completely IGNORED the THOUSANDS of American citizens that marched against abortion today????
http://michellemalkin.com/2008.....ashington/
January 23rd, 2008 at 5:17 am
In other news, the super-scientific DGC poll had this to say about the economy:
When asked his opinion on the economy, Mr. DGC had this to say:
” Am I working & paying my bills? Yes. Therefore, I am doing well. I trade the stock market. That’s how I paid for my last vacation. That’s how I paid for my wedding. Hell, yesterday during the big selloff, I BOUGHT a stock & made $500 bucks on it. That means I don’t have to work overtime for a couple of weeks. So, yes, the economy is doing just fine.”
Aren’t you worried about the stock market entering a new bear phase?
“Hell, no. I short the market when it goes down & STILL make money. Uh, you HAVE heard of shorting stocks, right?”