Posted on 10/07/2011 2:21:40 PM PDT by blam
STOCKS TANK IN FINAL MINUTES OF THE DAY: Here's What You Need To Know
Sam Ro
Oct. 7, 2011, 4:00 PM
More signs that the U.S. economy is not as bad as everyone thought. But, big downgrades in Europe bring us back to reality.
First, the scoreboard:
Dow: -18
S&P 500: -10
NASDAQ: -27
And now, the top stories:
* The highly-anticipated September jobs data came out with a bang. U.S. companies added 103k non-farm payrolls. Economists expected just 60k. The July and August figures were both revised upwards. However, the unemployment rate was unchanged at 9.1%, which wasn't a surprise. Also, the jobs recovery remains painfully slow.
* Fitch downgraded Italy and Spain in the middle of the trading day. Italy was cut from AA- to A+ with a negative outlook. Spain was cut by two notches to AA- and its outlook is also negative.
* The Euro dived against the dollar after the two downgrades.
* U.S. banks also sold off, as uncertainty remains regarding Eurozone exposure. Everyone's new favorite punching bag, Morgan Stanley got, banged up, even as their biggest competitor Goldman Sachs made a bullish call on the stock. Morgan Stanley fell 6%. Goldman Sachs lost 5%. Bank of America and JP Morgan declined 6% and 5%, respectively.
* Sprint shares dived after a rough investor day.
* Late in the day, the Federal Reserve said consumer credit unexpectedly shrank by $9.5 billion in August, the first contraction in 11 months. Economists expected growth of $8 billion. However, markets rallied after the news came out.
(Excerpt) Read more at businessinsider.com ...
thanks I have not seen that one, I have been curious as to how long the bad news can go on without a meltdown.
And the 0bama machine will take credit for a “miraculous recovery” when the economy continues on its actual course next year. It’s all spin.
Right after Obama was elected, I declared he would be a one-term wonder because the economy would still suck for the 2012 elections. I didn’t know then that Obama’s policies would double down on the bad economy.
I am still baffled whether we ultimately deflate or inflate, but I assumed in November 2008 that we had several years of deflationary debt destruction to endure, and I’ve never backed off that position.
Obama will be a one-term wonder because the November 2012 economy will be wretched and he will be blamed for it, rightly or wrongly. As it turns out, rightly. Massive debt is the cause of the economic crisis and he is rapidly raising the debt, making the long term outlook worse, with an ever increasing chance of some kind of financial collapse.
I’m not quite as pessimistic on the post Baraq era.
Especially if we get a POTUS like the Herminator.
I think there is a lot of bottled up activity that could break loose with a better leadership.
20 points is not “tanking.”
Agreed. I was intending that as a dry joke about tourism in southern Europe and foreign adherences in investments, politics, etc. Some of those of us who’ve had relations certain girls of southern European descent have an even more acute understanding. ;-)
Not a tank if you don’t look at the big picture, that is.
To this day(ahem), I still remember Rosana Servito from San Remo. (Was once my favorite place in Europe)
Oh, I am not saying the big picture is good, just seemed that the work “tank” in title was extreme for today’s situation given the huge swings we have had over the past few weeks...
And the "experts" were right... You know the old saying, "Figures never lie, but politicians lie with figures."
About 40,000 of those "newly employed" are CWA workers going back to work at Verizon when the strike ended. So more than 1/3 of those jobs supposedly added were people who were voluntarily unemployed.
Mark
20 points is a twitch, in light of the dynamics we’ve been seeing lately.
Wouldn't those number have been taken out in the previous report too showing unemployment even worse than it actually is/was?
Dexia got a 26 billion dollar loan from the Federal Reserve.
The IMF’s plan is a one trillion dollar plus bailout fund. I wonder where the IMF will get the money......
The question is: "What is the effective limit on the creation of fiat money by a country or an institution that is broke, if not yet formally bankrupt?"
We -- or at least TPTB -- seem hellbent on finding out, which action can only result in an horrendous crash.
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