Stocks dive, Futures dive, Jobless claims up, Unemployment Debt Foreign Economies, This ain’t rocket science

Stocks dive, Futures dive, Jobless claims up, Unemployment Debt Foreign Economies

From the Chicago Tribune May 20, 2010.

“Stocks take hard tumble
376-point drop puts major indexes at a loss for year”

“The stock market had its worst day in more than year Thursday, with the Dow industrials tumbling more than 376 points, as fear intensified that a debt crisis in Europe could jeopardize the global economic recovery.

The sell-off put the major U.S. stock indexes, including the Dow, in the red for the year and down more than 10 percent in less than four weeks, the market’s sharpest retreat since March 2009, when prices bottomed at 12-year lows.

Analysts said there was no dramatic news to explain the day’s declines, including the largest one-day point drop in the Dow since February 2009. And despite the fiscal problems of Greece and other European countries, most forecasters predict the U.S. economy will continue the moderate recovery it began last year.

But mixed signals coming from across the Atlantic about the ability and willingness of leaders there to manage the crisis has made U.S. investors anxious.

As a result, volatility in the stock market has increased sharply of late. Thursday’s drop was the 13th time in the last 18 sessions that the Dow has had a triple-digit move.”

“The crash appears to have damaged the psyche of some individual investors just as they were beginning to regain confidence in stocks after the deep bear market of 2007-09.

“People are more nervous than they would have been, say, three years ago, with this sort of decline because they’re picturing what they went through in 2008,” said Mark Wilson, a financial planner at the Tarbox Group. “The basic question is: ‘Are we going right back to where we started from? Should we be getting out now in anticipation of going back to those 2008 levels?'”

Wilson said he was cautioning clients not to overreact, pointing out that 10 percent declines, known as corrections, that merely interrupt longer bull markets are normal.

Nonetheless, in the week that began the day of the crash, individual investors pulled $14 billion from mutual funds, the first such net withdrawal since March 2009.”

“The outlook was not helped by two discouraging pieces of news about the American economy.

The Labor Department said initial claims for unemployment benefits unexpectedly rose 25,000 last week, to 471,000. Meanwhile, The Conference Board, a private research group, reported its index of leading economic indicators fell 0.1 percent in April, its first decline since March 2009.”

Read more:–20100520,0,4858776.story?page=1

Bull Market?

I don’t see it.
Glenn Beck has done a good job of covering the US debt situation, our jeopardy of losing our borrowing rating,  out of control spending and the impact it is having on our economy and future generations.

What is happening in the stock market is no mystery. Out of control government spending, anti business, anti jobs growth policies are exacerbating an already gloomy economy and job market. Overlay that with financial crisis in Greece, Europe and pessimism in China and you have a recipe for a stock market retreat.

I do  not have a crystal ball. However, the November elections can do more than saving this country from ruin. Removing many jackasses will restore confidence in financial markets and alllow Congress to control spending and create jobs.

Let’s roll.

2 responses to “Stocks dive, Futures dive, Jobless claims up, Unemployment Debt Foreign Economies, This ain’t rocket science

  1. We don’t need no “stinkin” government between us and our economy!

    The needs for family survival are the same today as they were when our economy was booming from 2000 to 2007. Housing, transportation, food, energy, medical help, education, furniture, entertainment and of course inter net access are the means of survival for modern man. The only item that has come between these needs and the publics’ ability to obtain them is this current government that is hell bent upon “redistributing the wealth.”

    They repeat they want to take the wealth from the wealthy and give to the non wealthy so that the under privileged (by their definition) will enjoy the benefits previously only enjoyed by the wealthy. This sounds like a well intentioned road-to-hell-good-idea to the bleeding hearts ignorant but it is not a good idea. The reason being is because when this regime is through redistributing the wealth it will be like this:

    The wealthy will have been looted and the loot will be divided among those in power. The poor will get no more than they already have and may very well lose many benefits they already enjoy, and the wealthy who were looted will have no more to be taken and many of them may deteriorate to the become among the poor with their hands out for government alms. The looters will take all the power and all the wealth they redistributed for themselves.

    This evil plan began long before Obama was in office with the George Soros instigated plan to withdraw billions from the American and world banks around the same hour at the end of August 2008. Remember when Hank Paulson claimed the banks were “too big to fail” and they were bailed out while Bush was still in office?

    Then the first major act of pirating by the commander & thief after he fraudulently assumed presidency was the “stinkulus bill” that was supposed to create jobs. That just turned out to be Obama’s “pay for his play” fund.

    The deeper in debt Obama puts America in, the more unemployment, the more government hand outs, the more he can make honest, hard working middle America lose all they have, the happier Obama, George Soros or Maurice Strong are.

    They are practicing Cloward/Piven theories while they use Saul Alinsky tactics upon America while they deliberately attempt to totally bankrupt and takeover America so it can become their oligarchy!

    The only item standing between American citizen’s prosperity and restoration of every American’s rights is Obama and his shadow government of czars. Once he and his vile ilk are out of office—one way or another—the economy including the housing market will return with a lot of effort and a couple of years!

  2. Well uspatriotshout gave a good description of the economic model for a third world basket case economy that is increasingly being adopted by the developed nations. I’m puzzled however by what is going on in the makets. It is a long time since I was running computer projects for big banks but I don’t think the basics have changed much. Therefore the expected movement in a debt crisis such as is happening in the Eurozone would be for investors to get out of bonds and move their money into safe, unspectacular stocks.

    At the moment everybody seems to be selling everything. It’s worrying…

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