Bernanke speaks - Dow drops 300 points

[UAL_TECH]

Stocks tumble as Street worries about financials

NEW YORK (AP) -- Wall Street extended its steep declines Tuesday as enthusiasm over the Federal Reserve's latest efforts to inject frozen credit markets with a dose of much-needed confidence gave way to concerns about financial companies' balance sheets. Trading remained fractious, with the Dow Jones industrial average losing more than 300 points.

Federal Reserve Chairman Ben Bernanke warned in a speech on the economy Tuesday that the financial crisis could extend the difficulty the economy is facing. Some traders appeared to regard his remarks as a sign that an interest rate cut could be in the offing, but that did not stanch the losses that built on Monday's huge drop.

:unsure: xUT

 

[UAL_TECH]

Shared Sacrafice:

Middle East stock markets plunge

Egypt's main index dropped by more than 16%, while shares in Saudi Arabia lost about 8% cent of their value.

Both markets have dropped by more than 40% since the beginning of 2008.

Analysts spoke of panic in markets, with investors concerned about the future for banks, and companies exposed to a faltering property market.

While billions of dollars were wiped off share values in the Arab world, the Israeli stock exchange rose sharply after the central bank cut interest rates.

The Saudi stock market, the Arab world's largest, has now lost more than 40% of its value this year.

xUT

 

[UAL_TECH]

Correction:

Stocks tumble as Street worries about financials

NEW YORK (AP) -- The misery worsened on Wall Street Tuesday, with stocks piling on the losses late in the session and bringing the two-day decline in the Dow Jones industrials to more than 875 points amid escalating worries about credit markets and financial sector. The Dow lost more than 500 points and all the major indexes slid more than 5 percent.

Steps by the Federal Reserve to reinvigorate the dormant credit markets ultimately weren't enough to calm nervous investors. News about financial companies only added to their despondent mood.

"The calls I'm getting -- every money manager I deal with, and every client I talk to -- are just very emotional. This is a very, very emotional time, and most of them are taking steps to shore up their defenses, reducing exposure to stocks just to defend their portfolios," said Hugh Johnson, chairman and chief investment officer of Johnson Illington Advisors

Dow closed at 9447.
Hang on, it's going to be a rough ride... 😛h34r:

B) xUT

 

[freedom]

Correction:

Stocks tumble as Street worries about financials



Dow closed at 9447.
Hang on, it's going to be a rough ride... 😛h34r:

B) xUT

rough ride ? what are you talking about !? only dimwhits would say something like that , do you mean to say the market is in for some sort of horrible horrible correction , the likes of say THE GREAT DEPRESSION ?

 

[UAL_TECH]

rough ride ? what are you talking about !? only dimwhits would say something like that , do you mean to say the market is in for some sort of horrible horrible correction , the likes of say THE GREAT DEPRESSION ?

Having a ‘rough’ ride is far from the 1929 depression. People will have to look at their finances as the ‘free’ credit will become much tighter and people who dumped their obligations will probably get none or at such a high interest rate that is unpalatable.

Heck, people might even have to pay cash and save for what they want. :wacko:

The ‘I want it now’ generation will think this will be a depression because they never lived on ketchup soup and popcorn so they could make rent or save up for something. No more running to the store and getting the latest gadget to impress their friends and sucking on credit that they can not pay for. :down:

It may be a depression to you, but it is just ‘another’ period of frugality to some of us.

From dimwit to another.

B) xUT

 

[freedom]

Having a ‘rough’ ride is far from the 1929 depression. People will have to look at their finances as the ‘free’ credit will become much tighter and people who dumped their obligations will probably get none or at such a high interest rate that is unpalatable.

Heck, people might even have to pay cash and save for what they want. :wacko:

The ‘I want it now’ generation will think this will be a depression because they never lived on ketchup soup and popcorn so they could make rent or save up for something. No more running to the store and getting the latest gadget to impress their friends and sucking on credit that they can not pay for. :down:

It may be a depression to you, but it is just ‘another’ period of frugality to some of us.

From dimwit to another.

B) xUT

Ah , but that’s where your systematically wrong ,it hurts me to read it ..


By the time people have to live on popcorn and ketchup as you say , society will almost have broken down …. We AMERICANS cannot live like that , we WON’T live like that …. Do you realize the level of psychology trauma that would be inflicted on most people , they wouldn’t be able to cope , we’d see rape , murder , theft rise to unheard of levels …



As for people dumping their obligations , expect to see more of it , A LOT more , as people wake up slowly that this is far worse than a normal recession their going to run out to the stores to buy AS MUCH AS THEY CAN , before their credit cards get shut off by companies that are just hemorrhaging money …. (what good will a credit score be when only those with AAA ratings can get credit ?)

As people lose their jobs you can expect these “deadbeats†as I suspect you would call them , stop paying their car loans , home mortgages and credit card bills , meaning that more companies will increase interest rates , credit scores will have to go even HIGHER to qualify for anything as bank after bank fears taking on more people who MAY default …. Much like what’s happening RIGHT NOW with the credit crisis …


This is no 1987 recession ,,, nor is it like the 2001 dot com burst …

If you’ve been following the fed and the treasury folk , you’d understand that this is a lot lot worse …. Heck right now Europe is getting the snot kicked out of them ….

 

[UAL_TECH]

Ah , but that’s where your systematically wrong ,it hurts me to read it ..


By the time people have to live on popcorn and ketchup as you say , society will almost have broken down …. We AMERICANS cannot live like that , we WON’T live like that …. Do you realize the level of psychology trauma that would be inflicted on most people , they wouldn’t be able to cope , we’d see rape , murder , theft rise to unheard of levels …



As for people dumping their obligations , expect to see more of it , A LOT more , as people wake up slowly that this is far worse than a normal recession their going to run out to the stores to buy AS MUCH AS THEY CAN , before their credit cards get shut off by companies that are just hemorrhaging money …. (what good will a credit score be when only those with AAA ratings can get credit ?)

As people lose their jobs you can expect these “deadbeats†as I suspect you would call them , stop paying their car loans , home mortgages and credit card bills , meaning that more companies will increase interest rates , credit scores will have to go even HIGHER to qualify for anything as bank after bank fears taking on more people who MAY default …. Much like what’s happening RIGHT NOW with the credit crisis …


This is no 1987 recession ,,, nor is it like the 2001 dot com burst …

If you’ve been following the fed and the treasury folk , you’d understand that this is a lot lot worse …. Heck right now Europe is getting the snot kicked out of them ….

Better study up:

A guide to self reliant living 😛