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Stock futures freeze as tumble worsens ["We are in a panic mode, I don't know how else to....]
Reuters ^

Posted on 10/24/2008 4:32:57 AM PDT by Sub-Driver

Stock futures freeze as tumble worsens Fri Oct 24, 2008 7:17am EDT

LONDON (Reuters) - Stock index futures tumbled so sharply in European trade on Friday, they had to be frozen at several points in the morning.

By 6:27 a.m. EDT December Dow Jones futures were down 6.2 percent, Standard & Poor's 500 futures were off 6.6 percent and Nasdaq 100 futures were down 6.6 percent.

All three contracts lost the maximum amount permissible before the start of futures trading in the United States.

"We are in a panic mode, I don't know how else to describe it and when you're in panic mode, all rational thought goes out of the window," said City Index chief market strategist Tom Hougaard.

"We've just got to let this thing rage. I think we'll see the Dow below 8,000 today."

According to Reuters data, December S&P futures hit a low of 855.20, while Dow Jones futures touched a low of 8,224 -- the lowest levels at which both contracts could trade in a session.

Jeremy Hughes, a spokesman for the Chicago Mercantile Exchange in London, said both contracts were "limit down."

"The limit is calculated at roughly 5 percent down. At that point it can't go any further down but it is still accessible and can go up again," he said.

(Excerpt) Read more at reuters.com ...


TOPICS: Business/Economy; Front Page News; News/Current Events
KEYWORDS: blackfriday; capitulation; computertrading; energy; forcedselling; hedgefunds; opec; stockmarket
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1 posted on 10/24/2008 4:32:57 AM PDT by Sub-Driver
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To: Sub-Driver

Wow. Thy’ll stop at nothing to get Obama across the finish line.


2 posted on 10/24/2008 4:36:04 AM PDT by petercooper (I am a bitter clinger!)
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To: petercooper

Mindless panic may lead to electing authoritarians speaking reassuring words while wearing well tailored suits (or uniforms)

Historically, didn’t the financial ruin of Germany help usher in “change” in the 1920’s?


3 posted on 10/24/2008 4:42:51 AM PDT by silverleaf (Fasten your seat belts- it's going to be a BUMPY ride.)
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To: petercooper
They’ll stop at nothing to get Obama across the finish line.

I think it may be accurate to say that the markets are realizing that others are stopping at nothing to get Obama across the finish line. The fools who follow Hussein-O may not be able/willing to see the edge of the cliff, but plenty of others are trying to jump out of the car before it clears the rim of the canyon.

Mr. niteowl77

4 posted on 10/24/2008 4:43:55 AM PDT by niteowl77 (The niteowl77s: parents who support those who support their soldier.)
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To: Sub-Driver

Okay, this is incredibly bad.


5 posted on 10/24/2008 4:44:53 AM PDT by durasell
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To: petercooper
Not at all... you have cause and effect wrong.

This is a John Galt moment.

Many professional investors are afraid the rules will be stacked so they can do nothing but lose, so they've decided that they don't want to play.

6 posted on 10/24/2008 4:54:41 AM PDT by tcostell (MOLON LABE - http://freenj.blogspot.com - RadioFree NJ)
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To: Sub-Driver
Will it be a 'profit taking Friday', or 'get out with whatever you can Friday' ?

London and Asian markets plunge

7 posted on 10/24/2008 4:59:27 AM PDT by M. Espinola (Freedom is not 'free'.)
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To: tcostell

Yes and when Obama is crushed in 2 weeks, the market rallies 20% in one day. This country will not have a president with the middle name “Hussein” any time soon.


8 posted on 10/24/2008 5:02:09 AM PDT by petercooper (I am a bitter clinger!)
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To: petercooper

Actually I’d be very surprised if the market didn’t sell off in the first half of November no matter who wins. McCain’s anti-capitalist rhetoric hasn’t made him a ton of friends on wall street.


9 posted on 10/24/2008 5:05:22 AM PDT by tcostell (MOLON LABE - http://freenj.blogspot.com - RadioFree NJ)
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To: petercooper
Wow. Thy’ll stop at nothing to get Obama across the finish line.

No it's the opposite! The markets, I.E. investors and businesses, are scared to death of Obama and the RAT congress running everything.

10 posted on 10/24/2008 5:09:15 AM PDT by AmericaUnited
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To: tcostell
McCain’s anti-capitalist rhetoric hasn’t made him a ton of friends on wall street.

And just how is "Corporations should pay lower taxes" anti-capitalist ??! It is not.

11 posted on 10/24/2008 5:10:36 AM PDT by AmericaUnited
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To: silverleaf

Bingo. This is right out of Karl Marx’s manifesto.

I think what your seeing though is not a conspiracy by Soros or anything like that, its just rational people reacting to irrational times. But it creates and environment that welcomes Communists and opportunists. I think the market will bottom at about 7000 even. But I’m not getting back in either way until the election is held. If Obama gets elected, you will see a short spike upwards followed by another major dip over the next 5 or 6 months. 5000?

This is a John Galt moment.


12 posted on 10/24/2008 5:10:49 AM PDT by ChinaThreat (s)
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To: petercooper
Yes and when Obama is crushed in 2 weeks, the market rallies 20% in one day.

I'm betting big that way.

13 posted on 10/24/2008 5:11:22 AM PDT by AmericaUnited
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To: Sub-Driver

Everything is in free fall. Gold below 700, Silver below 9, Oil getting close to 60, Asia Stock Down Up to 11 % today, Europe down up to 9 % and US Futures looking bad for later today. Yikes. We must be in a twilight zone episode or something. This is obviously a global phenomenon.


14 posted on 10/24/2008 5:12:42 AM PDT by justa-hairyape
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To: justa-hairyape

This is the prelude folks.

Deflationary crisis. Except no one has the cash to buy things at the lower prices.


15 posted on 10/24/2008 5:15:22 AM PDT by Vermont Lt (I am not from Vermont. I lived there for four years and that was enough.)
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To: AmericaUnited
And just how is "Corporations should pay lower taxes" anti-capitalist ??

One could say,the carbon tax he wants impose on business' is anti capitalist,couldn't they?He and Lieberman led the charge in 2003 to reduce greenhouse gases and wanted to make business' pay for the carbon they emit.

16 posted on 10/24/2008 5:19:11 AM PDT by quack ("Those Who Sacrifice Liberty For Security Deserve Neither.")
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To: AmericaUnited

I’m with you. I’ve been buying all the way down. Look at the Palin rallies- they’re huge. We’re seeing a massive wave of support which is going on below the radar, and of course it is being unreported by the biased media. McCain wins 54-46.


17 posted on 10/24/2008 5:19:14 AM PDT by petercooper (I am a bitter clinger!)
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To: All

Where is all of the cash? Who is holding all of the money and where are they keeping it? Is all in bonds or cash accounts? When the investors are selling their stocks, funds and commodities, where are are they putting their money? In banks, only to fail there?


18 posted on 10/24/2008 5:21:24 AM PDT by Maringa
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To: silverleaf
while wearing well tailored suits (or uniforms)

there's a difference?

19 posted on 10/24/2008 5:22:02 AM PDT by ninonitti
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To: tcostell

And Wall Street is now a friend of Joe the Plumber????


20 posted on 10/24/2008 5:22:10 AM PDT by Red in Blue PA (Obama is not qualified for the FBI, but he is qualified for the Presidency????)
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To: Vermont Lt
Except no one has the cash to buy things at the lower prices.

In the case of Silver and Gold, you cannot even physically acquire it right now. Here is an interesting excerpt from a bulletin from the President of BullionDirect.com.

Additionally, private manufacturers are also operating beyond capacity. 1oz., 10oz., and 100oz. Silver bars are particularly affected by these production delays. This added flow of physical metal and physical cash (by the Fed injecting into the banking system) has also caused delays in armored, secure transportation. These industry wide delays have affected our operation and ability to process even basic orders in a timely matter.

Good news is that the US Mint is concentrating on making the 1oz Silver and Gold Eagles. Some might be available in November, apparently. So it is difficult to even buy an asset that is deflating right now. Man this is a weird situation.

21 posted on 10/24/2008 5:23:12 AM PDT by justa-hairyape
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To: AmericaUnited

The prospect of BO as pres with a demo congress inevitably opens up pro-communist possibilities. I’d love to buy at these levels but till we get some sense of stability with a win by Mav&Cuda, I will keep the powder dry.
The average 401k owner has no idea what a commie leadership will mean to their assets. If they did, the mega Obama rallies would take on a distintly different tone.


22 posted on 10/24/2008 5:25:03 AM PDT by bossmechanic (If all else fails, hit it with a hammer)
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To: AmericaUnited
Hey look ... don't shoot the messenger. Don't attack me if the people I work with all remember that McCain has been talking about 'wall street greed' and 'punishing wall street' for 6 months.

I'm just telling you what the environment is like that's all.

23 posted on 10/24/2008 5:25:04 AM PDT by tcostell (MOLON LABE - http://freenj.blogspot.com - RadioFree NJ)
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To: petercooper
Wow. Thy’ll stop at nothing to get Obama across the finish line.

I think the markets are scared he WILL make it across the finish line.

24 posted on 10/24/2008 5:25:35 AM PDT by Arrowhead1952 (Will it be "comrade" after the elections?)
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To: Red in Blue PA

They always were.


25 posted on 10/24/2008 5:26:37 AM PDT by tcostell (MOLON LABE - http://freenj.blogspot.com - RadioFree NJ)
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To: justa-hairyape

I buy gold through them on probably a weekly basis. It is weird. the only stuff out there is Chinese or Mexican...if you can put your hands on it, it sells.


26 posted on 10/24/2008 5:26:40 AM PDT by Vermont Lt (I am not from Vermont. I lived there for four years and that was enough.)
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To: justa-hairyape

If you believe in lines, the S&P should be at around 820.


27 posted on 10/24/2008 5:27:26 AM PDT by Boiling Pots (Get off your ass and do something...Print signs and post them around town)
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To: silverleaf
didn’t the financial ruin of Germany help usher in “change” in the 1920’s?

Hitler was a "taker". Obama is a "giver". He'll try to buy the good graces of every tin-pot in the world.

McCain 2008.

28 posted on 10/24/2008 5:30:36 AM PDT by Glenn (Free Venezuela!)
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To: petercooper

I think you’re right. There are going to be a lot of Dems voting McCain, too.


29 posted on 10/24/2008 5:31:50 AM PDT by unkus
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To: tcostell

Yeah, that’s why a few people there put the entire country into economic cricis.

Believe that if you want.....facts show the opposite.


30 posted on 10/24/2008 5:32:03 AM PDT by Red in Blue PA (Obama is not qualified for the FBI, but he is qualified for the Presidency????)
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To: bossmechanic
American's for Tax Relief calculator:

How Do Their Plans Impact Your 401(k)?

31 posted on 10/24/2008 5:34:06 AM PDT by SuperSonic (Bush "lied", people dyed.......their fingers purple.)
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To: Boiling Pots
This excerpt from a Reuters article may explain what is happening to stocks now. Salient phrase highlighted.

TORONTO, Oct 22 (Reuters) - The Toronto Stock Exchange's main index closed nearly 6 percent lower on Wednesday as resource issues sank along with commodity prices on concerns that a global economic slowdown will slash demand.

32 posted on 10/24/2008 5:35:24 AM PDT by justa-hairyape
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To: justa-hairyape
that a global economic slowdown will slash demand.

Transportation numbers are just awful. UPS, FedEx, Yellow and Ocean Going Vessels are off 7% just as the Christmas stocking season is here. America is out of consumer credit and cash. Yikes.

33 posted on 10/24/2008 5:39:57 AM PDT by Glenn (Free Venezuela!)
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To: tcostell

True dat, but he still looks like Milton Friedman next to Obama.


34 posted on 10/24/2008 5:42:25 AM PDT by RockinRight (Obama who?)
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To: petercooper

OK...while I’ve thought that McCain could pull this off...if you think it’s gonna be 54-46, I want some of whatever you’re smokin’.


35 posted on 10/24/2008 5:43:42 AM PDT by RockinRight (Obama who?)
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To: niteowl77
Wow. Thy’ll stop at nothing to get Obama across the finish line.

People are realizing that Obama is going to be the next Prez - and the implications are dire for economies worldwide. Hope your seatbelts are on...

36 posted on 10/24/2008 5:44:35 AM PDT by Liberty1970 (Mainstream media is not mainstream. Call it what it is: Hate Media.)
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To: Maringa

All banks will not fail. Most won’t in fact.


37 posted on 10/24/2008 5:44:56 AM PDT by RockinRight (Obama who?)
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To: Liberty1970

THEN WHY THE HELL ARE THESE SAME PEOPLE STILL VOTING FOR HIM???


38 posted on 10/24/2008 5:45:15 AM PDT by RockinRight (Obama who?)
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To: Glenn
And I just got an email from UPS stating that rates for next day will go up ~6 % in 2009. Apparently their operating costs have Increased more then their fuel costs have Decreased or so they say
39 posted on 10/24/2008 5:45:17 AM PDT by justa-hairyape
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To: petercooper
Thy’ll stop at nothing to get Obama across the finish line.

Is that why "they" are buying dollars like crazy too?

40 posted on 10/24/2008 5:46:23 AM PDT by palmer (Some third party malcontents don't like Palin because she is a true conservative)
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To: RockinRight

True, and that’s why I’ll be voting for him.


41 posted on 10/24/2008 5:47:39 AM PDT by tcostell (MOLON LABE - http://freenj.blogspot.com - RadioFree NJ)
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To: Maringa
Where is all of the cash?

Yen, Swiss francs, and dollars in that order. The rise in Yen is at least partly due to carry trade unwinds. For a decade or so, people have been borrowing cheap yen to buy stuff elsewhere and needed to sell their yen to do that. It has driven down the yen artificially (with the willingness of the Japanese to prop up their exports). Now people are forced to buy those yen back.

To a lesser extent the dollar and SwFranc rallies are the same. The dollar is also effectively being short squeezed.

42 posted on 10/24/2008 5:51:41 AM PDT by palmer (Some third party malcontents don't like Palin because she is a true conservative)
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To: tcostell

“rules are stacked”

Bingo! No more deal-hunting here. Now I’m just spooked. If we go down, I just hope the Goldman and Morgan do as well. This whole thing stinks of self-dealing and manipulation.


43 posted on 10/24/2008 5:51:50 AM PDT by Natchez Hawk (Haider was a drunken, suicidial, sad, gay man. At least he lived up to his idol...)
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To: justa-hairyape

I’d guess that people have to have their run of pain until they get tired of it. Until their “fear” gets old and they decide to move on...

It seems to be something rooted deeply in human nature...


44 posted on 10/24/2008 5:53:58 AM PDT by DB
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To: Sub-Driver

Bizarre..


45 posted on 10/24/2008 5:55:52 AM PDT by SE Mom (Proud mom of an Iraq war combat vet)
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To: justa-hairyape
global economic slowdown

Those don't happen for no reason or because everybody decides to panic at once. The biggest problem is deleveraging. Credit markets are still frozen where it counts (the 10:1 hedge funds, all buyers of ABS, etc). Those people drove the credit bubble and they are not going to keep driving it. The banks cannot do it themselves, it is too risky for them as we are just finding out.

Once a credit bubble is over, it will shrink based on how excessive it was and ours, Europe and Australia / New Zealand was pretty excessive.

46 posted on 10/24/2008 5:58:09 AM PDT by palmer (Some third party malcontents don't like Palin because she is a true conservative)
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To: justa-hairyape
There's been a lot of hidden inflation over many years now.

As time goes on it is unmasking itself here and there working its way through our entire economy. It is going to likely take years before it settles down and reaches equilibrium...

47 posted on 10/24/2008 6:03:06 AM PDT by DB
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To: AmericaUnited
The markets, I.E. investors and businesses, are scared to death of Obama and the RAT congress running everything.

I agree - I have been so frustrated listening to *analysts* who never mention this.... Its clear as glass to me.... everyone whose wealth is about to be "spread around" is scared to death to see the headlines on Nov. 5th!

48 posted on 10/24/2008 6:04:20 AM PDT by Momto2
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To: palmer
Once a credit bubble is over, it will shrink based on how excessive it was and ours, Europe and Australia / New Zealand was pretty excessive.

And the commodity bubble burst has followed the credit bubble burst. So perhaps the lack of credit has destroyed the demand for commodities. I think the economists call it demand destruction. Wonder what this will do for the cash based small business models ? As a small business man, my costs have not dropped. I cannot drop my selling or service prices. As I posted earlier, UPS is raising its prices next year. So my costs are increasing. Taxes will also be higher.

49 posted on 10/24/2008 6:05:41 AM PDT by justa-hairyape
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To: Maringa

“Where is all of the cash? Who is holding all of the money and where are they keeping it? Is all in bonds or cash accounts? When the investors are selling their stocks, funds and commodities, where are are they putting their money? In banks, only to fail there?”

Miraculously, I happen to be in cash now through the sale of a multi-family building in which I invested 12 years ago. Made a nice profit, which I intend to protect by doing a 1031 exchange - which defers the cap gains tax indefinitely.

That means I’ll be going back into real estate. I’m looking at a state leased office building in Midwest, as well as a single-tenant (FedEx) warehouse on the West Coast.

Decent returns on both, and the tenants appear to be secure.


50 posted on 10/24/2008 6:07:33 AM PDT by StatenIsland (The '08 Election: It's about the survival of our country, not making a point...)
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