Skip to comments.The fear trade: Dow sinks 200 points
Posted on 04/10/2012 12:43:59 PM PDT by Signalman
NEW YORK (CNNMoney) -- The fear trade picked up steam Tuesday, as investors grew increasingly worried about Europe's fiscal health, as borrowing costs in Spain and Italy spiked.
All three major indexes were down more that 1.5% by mid-afternoon, as rattled investors bailed out.
"People are starting to get very concerned about the macro picture of both sovereign debt and China's slowing growth," said Sam Ginzburg, head of trading at First NY. "We're starting to get very worried about going back to a recession."
The Dow Jones Industrial Average (INDU) tumbled nearly 210 points, or 1.6%. The S&P 500 (SPX) lost 24 points, or 1.7%. The Nasdaq (COMP) fell 58 points, or 1.9%.
The U.S. indexes followed European stocks, which slumped more than 2%.
Yields on Spain's 10-year bonds hovered just under 6%, the highest level in more than three months. Borrowing costs have been trending higher as the government struggles to push through budget cuts. In Italy, the yields were near 5.7%.
(Excerpt) Read more at money.cnn.com ...
Hold onto your wallet! Obamanomics is on a roll again!
If any of the people in this article - including the author - knew what they were talking about, THEY WOULDN’T BE IN THE ARTICLE....
They’d be relaxing on a boat in the Caribbean...
Nice spin CNN. Investors see what most everyone who is not brainwashed idiots see: There is NO good news in this nation. EVERY economic trend or index is either terrible or a complete lie from Obama and the MSM. The nation will be assured to be run by a liberal after 2012. Americans are increasingly pessimistic in the future of the nation.
Learn to sing the CNBC song:
Market up? Bargain hunting.
Market down? Profit taking.
What is this business about “going back to a recession”?
Oh, if you mean, by rising out of the long-term DEPRESSION we are in, than by all means, let us get back to being “only a recession” There is so little growth going on now, and the real numbers of both inflation and unemployment are being juggled around so, the reporting on the actual state of the economy has been totally obscured.
Raising taxes won’t do it. The Federal government has an incoming revenue stream that would have been an unthinkable level only a couple of decades ago. We do not have a revenue problem, we have a spending problem, and almost all of it is due to “entitlement” spending.
When the “safety net” has become a hammock, it is doomed to fail. Then where is the safety net for the safety net?
You could be headed for that concrete floor at terminal velocity.