Skip to comments.Stock futures freeze as tumble worsens ["We are in a panic mode, I don't know how else to....]
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 ...
Wow. Thy’ll stop at nothing to get Obama across the finish line.
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?
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.
Okay, this is incredibly bad.
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.
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.
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.
No it's the opposite! The markets, I.E. investors and businesses, are scared to death of Obama and the RAT congress running everything.
And just how is "Corporations should pay lower taxes" anti-capitalist ??! It is not.
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.
I'm betting big that way.
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.
This is the prelude folks.
Deflationary crisis. Except no one has the cash to buy things at the lower prices.
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.
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.
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?
there's a difference?
And Wall Street is now a friend of Joe the Plumber????
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.
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.
I'm just telling you what the environment is like that's all.
I think the markets are scared he WILL make it across the finish line.
They always were.
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.
If you believe in lines, the S&P should be at around 820.
Hitler was a "taker". Obama is a "giver". He'll try to buy the good graces of every tin-pot in the world.
I think you’re right. There are going to be a lot of Dems voting McCain, too.
Yeah, that’s why a few people there put the entire country into economic cricis.
Believe that if you want.....facts show the opposite.
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.
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.
True dat, but he still looks like Milton Friedman next to Obama.
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’.
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...
All banks will not fail. Most won’t in fact.
THEN WHY THE HELL ARE THESE SAME PEOPLE STILL VOTING FOR HIM???
Is that why "they" are buying dollars like crazy too?
True, and that’s why I’ll be voting for him.
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.
“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.
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...
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.
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...
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!
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.
“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.