Dow Closes Down 504.48

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[muawiyah]

Well, not exactly "everything", for example, the INDEX FUNDS. First, the S&P ill need to drop 2 or 3 and figure out who to move up. Then, the Russell 2000 will need to drop several, and add several.

At the moment it's difficult to figure out the lists.

Maybe by 10 AM tomorrow? Should see some zigzags and jumps then.

[Old Professer]

Oil is at $94.23 right now.

[Puppage]

Let’s see how the media cover this on the 6 PM news - doom, gloom, scare people, Bush bad.

Count on it

[AxelPaulsenJr]

I wish someone could explain to me just what the H*ll is causing all of this...........

[HamiltonJay]

WAMU has been in dire straights for a while...

Financial sector was basically destroyed by a bunch of greedy self servers, and now the piper has come to be paid.

[Ravi]

No more bailouts. Let the chips fall where they may. The sooner we hit botton, the faster we can rise wherever that may be. I have pulled all my money out of the market outside 401K.

[HamiltonJay]

TRILLIONS UPON TRILLIONS OF BAD LOANS is what’s causing all this... created by simple undeniable unfettered greed.

[Perdogg]

Wachovia is not in serious trouble, it’s Washington Mutual. Please don’t spread rumors.

[Mr. Jeeves]

Americans borrowed lifestyles they couldn't afford from other countries, using now-troubled financial institutions as intermediaries. Those other countries are starting to realize that Americans don't have the money to pay them back. There are a lot of complicated financial instruments in between, but that's the gist of it.

The Dow will eventually retest the post 9/11 low - about 7,500. That will be a pretty good long-term buying opportunity.

[muawiyah]

BTW. Russell is already on the way up.

Here's a history lesson for everybody. One day the Doge and the Senate in Venice decided it was time to cash in the bonds outstanding on the national debt (called the Monte Veccio).

They offered 2% on the ducat.

People redeemed their money as fast as they could, particularly those who'd seemed to have lost 98% of their wealth.

The next day the bond market reopened and had a landoffice boom! Everybody took his 2% and reinvested in Venice, the best buy in the world at that time.

[Notasoccermom]

Market fears regulation from Obama if he wins (that’s in the back of the markets mind). Though I am surprised the market hasn’t been rallying since it became clear McCain would win.

Won't this change minds of the public with the new wave of Bush bashing and blaming economy on him? How can the GOP as better for economy message get out?

[Bronco_Buster_FweetHyagh]

This is clearly the fault of George Bush.

p.s. to believe this, one must either be an ass, or ignorant (for from DU forums, both). Ask a liberal which entity of our government is "responsible" for oversight of the economy.

[thefactor]

thank god for the little things:

renting apartment, city job, pension, benefits, overtime, deferred compensation.

[DM1]

“I wish someone could explain to me just what the H*ll is causing all of this...........”

in a nutshell - bad loans.
people start not paying their loans
liquidity goes right down the crapper
there is more to it but this is your starting point

[gogov]

That is putting it mildly

[r_barton]

Don’t worry. The federal government has plenty of green ink, silk paper and printing presses. They won’t run out of bailout money.

/sarcasm

[boogerbear]

Too many companies extended too much credit to too many people and other companies that were probably not going to be able to pay it back and didn’t have the level of assets necessary to properly secure the loans.

Basically it’s stage two of the housing bubble meltdown. Properties bought on speculative credit went down in price or just sat unsold. Stage one involved the up front owners going down, stage two is the creditors who gave the up front owners all that money finding out that most of that money has now evaporated. Not only will they not get it back from the people they lent it too, but even selling the foreclosed properties is only going to get them a small percentage.

But just like bad Mexican food this too shall pass.

[Mr. Jeeves]

Wachovia is not in serious trouble, it’s Washington Mutual.

You have to be kidding. They are in just about the same situation - bankrupt within weeks without a Fed-enabled, Bear Stearns-style bailout/takeover.

[thefactor]

the banks are foreclosing on the loans they BEGGED people to take.

[AxelPaulsenJr]

You might want to pass on to MSN that that is a rumor about Wachovia. I got the report from them....