"This is the greatest wealth destruction I've seen by a President." - Cramer
Posted on 03/30/2009 10:39:33 AM PDT by Red Steel
NEW YORK (AP) -- Wall Street's big March rally was officially on hold Monday as concerns about the future of the auto and financial industries led investors to take a break from buying.
Major market indicators fell at least 3 percent, including the Dow Jones industrial average, which lost fell 260 points.
The White House rejected turnaround plans from General Motors Corp. and Chrysler on Monday, warning that more concessions were needed from unions and creditors before they could be approved. Fears of an automaker bankruptcy have been looming over investors for months, and the latest developments made the market even more uneasy about the industry.
At the same time, investors remained on edge about the fragile banking industry. Treasury Secretary Timothy Geithner said Sunday during a television interview that banks would likely need considerably more money.
However analysts said the pullback, which began Friday, wasn't surprising after the Dow surged 21 percent over just 13 days.
The rally began in early March and was fueled by economic and corporate reports that were starting to look more encouraging. Now, investors are taking money out of the market ahead of economic numbers coming out this week and first-quarter earnings in the weeks ahead, fearing that disappointing data will set the market back.
With the economy still deeply troubled, some analysts say the market may have gotten a bit ahead of itself.
"I think we had a huge run up ... that was not really justified," said Peter Jankovskis, co-chief investment officer at OakBrook investments. "There are a lot of negatives right now on the horizon."
Also among investors' chief concerns is Friday's March employment report, which is expected to show that U.S. employers shed more than 650,000 for the fourth straight month.
In early afternoon trading, the Dow tumbled 260.53,
(Excerpt) Read more at finance.yahoo.com ...
>> With the economy still deeply troubled, some analysts say the market may have gotten a bit ahead of itself. “I think we had a huge run up ... that was not really justified,”...
I’m going to nominate that one for the “DUH” of the day award.
S&P 500 is further down with loses than the DOW at 784.79 -32.68 -4.01%.
All indicators are falling even the 10yr bond market.
It was a sucker rally. Now we are starting to see how much Zero can damage the economy.
Government Motors...will shortly be owned by the UAW.
Update: Dow 7,476.46 -299.72 -3.85%
Democrats restoring the economy. Can’t wait ‘til they start building automobiles.
I wish Henry Ford the First was around. He’d cut Obama a new one.
While it wouldn't surprise me that 0bama would want more concessions from the creditors, I can't imagine what he wants from the unions... His buddies in the UAW, Teamsters, and other thug organizations won't give up much. So I personally think this is just a front. Something else is afoot...
Maybe trying to set up a sale of GM/Chrysler to the ChiComs? Maybe trade them for $7.39 worth of US debt forgiveness, and a bag of noodles...
http://www.redstate.com/blackhedd/2009/03/30/general-motors-hurtles-toward-bankruptcy/
General Motors Hurtles Toward Bankruptcy
And then there’s the UAW. They are in fact the beginning and the end of the government’s interest in General Motors. They will come out of this as the big winners. Never mind that the average automaker earns half again as much in wages and benefits as the average American. UAW boss Ron Gettelfinger, with CEO Obama at his side, will announce “deep, painful concessions” to be suffered by the union membership.
But don’t believe a word of it. The union will come out of this nearly untouched, with their exorbitant compensation packages basically intact, and minor changes in work and seniority rules. And you the taxpayers will be paying for every penny of this, because they won’t be earning all that pay in the market. GM in bankruptcy will force every one of its stakeholders to take major pain except the UAW membership.
When I heard his royal assholeness was going to speak today, I was girded for what I knew would be another bad day in the market. The reality now is if you are in business, you are evil. Investors would be smart and just sell...no one wants to be an investor or entrepreneur with this bunch of lunatics in charge. What a joke, a guy who never ran a lemonade stand calling the shots at one of our major industries.
They will build the Homer Simpson car.
The List, ping
Bambi speaks (in that insufferably arrogant tone of his)....the market falls.
Another update: Dow has -300 ...7,472.64 -303.54 -3.90%
We could be headed for a banner lose day.
The rest of the week will be interesting for stock markets.
Germany, japan, and china seem to be hurt the worst. I don’t quite understand why that is. They are the largest economies in the world other than USA. I’m starting to wonder if america is going to come out on top of this global fiasco after all.
"Obama addressed industry workers, a crucial constituency, saying that while there may be more pain to come, “I will fight for you. You are the reason I am here today
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