Friday, November 21, 2008
Pbama's Market Free-fall
The Standard & Poor's 500 index fell 6.7 percent to the 752 level, below the closing low of 776.76 logged on Oct. 9, 2002. The Dow Jones industrial average, meanwhile, fell 445 points, or 5.6 percent, to its lowest close since March 2003. The decline brings the Dow's two-day drop to 873 points, or 10.6 percent, its worst two-day percentage loss since October 1987.
Financial stocks plunged on worries that the government's financial rescue won't be sufficient to cover banks' losses. Meanwhile, a sharp drop in oil prices weighed heavily on energy companies.
"Unrelenting gloom has taken over the markets," said Dana Johnson, chief economist at Comerica Inc. "The economic news, the concerns about some major financial institutions, the concerns about the auto sector, earnings reports, everything is coming out in a way that is just provoking a massive selling in the stock market."
Fear of a deep global slowdown ripped through financial markets on Thursday, wiping out a decade of U.S. stock market gains and driving yields on government debt to record lows as aversion to risk exploded.
"You have fear in the market that you haven't had since the 1930s," said Bryan Taylor, chief economist with Global Financial Data in Los Angeles.
Investors stampeded into low-risk assets as they abandoned stocks for U.S. government debt and the risk-averse yen. Ultra-short bill rates fell toward zero percent and two-year yields set a series of record lows.
And we all know who is to blame for this, right? It's Prednint Elect Barack Hussein Pbama, Junior. Oh, Dave - you say - how can you say that when he's not even in office yet? The answer is that the market is reacting - and has been since the election - to fear...fear of the future with Pbama at the helm and fear of what he brings: Marxism, the expansion of The Nanny Government into the Free Market and onerous and excessive environmental regulations.
Way to go, Pbama! Keep talking about raising those capital gains taxes! Keep talking about taxing the rich! Keep talking about bankrupting the coal industry. Keep talking about skyrocketing electric rates. Keep talking about no offshore oil exploration. And watch the market fall, fall, fall.
Welcome to Market Fear, brought to you by Pbama, the Pbama Cultists and The Insane Liberal Clown Posse.
It is solely because of the G-Mail themes, though. I have a screenshot up at my blog, it is more awesome than pr0n.
Dammit, Drake, you have no Adsense on your blog, do you know what that is doing to GOOG?
I'm signing off and turning on the TV for a hockey game! Will rejoin the blogosphere in a day or two. Time is rather tight right now. Take care TD, my best to you & Bean.
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