Skip to comments.Dow (Futures) Down 150 Points
Posted on 10/05/2008 5:56:46 PM PDT by icwhatudo
Wall Street is reacting negatively to the passage of the banking bailout plan. Stock index futures, which give an indication of how trading will proceed when the market opens Monday, were down over 150 points at 8:30pm EST Sunday evening. Japan's Nikkei stock average has fallen 275 points (2.52%) on Monday (local time) despite President Bush's signing of the financial bailout bill.
(Excerpt) Read more at money.cnn.com ...
We’re screwed no matter what.
Oh, a couple of trillion more dollars of fiat money ought ot solve the situation. Jeeze, Louise - let the market correct, folks.
The DOW isn’t what people need to be watching here.
Opening up of credit is the key thing. Last week GE had to pay Buffet an interest rate of 10% plus future valuable stock warrants to borrow money. If GE’s paying 10%+, think of what your local small business person might have to pay this week.
I didn’t agree that this particular bailout plan was the way to go, but somehow massive intervention was/is needed to open up the credit markets.
You didnt think the bailout would actually work did you? I doubt the Treasury has even come up with a plan to buy those worthless houses yet, let alone transferred any money. I think they have 45 days to start....
I have heard several folks credit lines have double to 10% in the past week...that must be the new rate for now. Also, they had their limits cut in half.
“Wall Street wants more free money, f*** them”
Now now, it’s only 850 Billion dollars or 85 x what the entire Iraq/Afgan war has cost to date.
Well I “freed up” some credit by cutting my rarely used card in half and informing them that they don’t need to bill me anymore.
I think we’re going to see pretty flat trading until the market digests what’s happening. 150 down in futures isn’t terrible, and that can - and will - turn on a dime, either tonight or after the market opens.
Yes, and we also noticed that the DOW recovered the majority of that drop the next day when it was discovered that the sky did not, in fact, fall.
Look - the Big Boys - the investment houses, the banks, the hedge funds - are going to let the stocks sink sink sink.
Then they’re going to use their taxpayer-funded $700 billion slush fund to buy up all those low cost stocks, and cash in when they drive it up again about one or two years from now.
They’ve had a game plan for this all along. And Paulson will be back on Wall Street with his buddies.
Yes. The market would know that something would have to be done and that a better bill would be written that would most likely include a temporary end to the capitol gains tax and other business friendly measures important to house conservatives.
Didnt you notice last Mondays stock market crash upon its rejection?
Did you notice it was down 300 points prior to the vote (that everyone thought was going to pass)? Did you also notice the market made back more than it lost (after that vote) the very next day?
You can legitimately argue that the governments role is not to support the stock market.
No, I can't. I think the government SHOULD support the stock market with business friendly policies.
lets at least concede short-term cause and effect between congressional action and the stock market returns.
OK, I concede that the short term effect of the bailout bill is....a current DJIA of 10194 compared to a DJIA of 10365 (the bottom of the "crash") and a DJIA of 10850 the day after the House rejected the bailout.
Any idea why mortgage rates are falling and companies like Ditech are still advertising non-stop nationally telling us this is a great time to get a loan? Why loan money out at 6% if you can get 10% instead?
I can't wait for the morning stats...grrrrrrrr.
Nikkei now down 382.07 (3.49%), gonna be a rough day and who is CNN going to blame now?
“...$700B is not enough. Wall Street wants more and will thow a tantrum until its gets at least 3X that...”
Let them eat cake!
Everything is red. Scary. Checking the Asian markets before one goes to bed doesn’t exactly make for a restful sleep. :(
“...Folks you do not get it. Fannie Mae and Freddie Mac are 90% of the cause of this problem...”
There are a few who get it. You are correct. We “bailed out the boat, but didn’t patch the hole.” (Mike Huckabee - his show was pretty good.)
That should be http:// ... Didn't include the "h"