Skip to comments.Dow plunges 733 as new data points to recession
Posted on 10/15/2008 1:52:49 PM PDT by prolifefirst
Despair over the economy sent Wall Street plunging again Wednesday, propelling the Dow Jones industrials down 733 points to their second-largest point loss ever. Stocks fell on a combination of disheartening economic data, including a big drop in retail sales and a Federal Reserve report that said tight credit conditions are hurting businesses across the country.
The government's report that retail sales plunged in September by 1.2 percent -- almost double the 0.7 percent drop analysts expected -- made it clear that consumers are reluctant to spend amid a shaky economy and a punishing stock market.
The Commerce Department report was sobering because consumer spending accounts for more than two-thirds of U.S. economic activity.
(Excerpt) Read more at biz.yahoo.com ...
Sucker rally....but I'll give you one out of two even though it wasn't 500 points (it was close enough).
Can’t find enough information about the Weimar Republic nowadays...
I watched. You were only off by a measly 600+ points!
Don't quit your day job... ;-)
If you look at a 5 day chart, you’ll see the pattern. The high occurred in the day, not at close. I am going to guess a sell off on Monday to take profits.
I guess they forgot to mention the two hurricanes that hit the Texas-Louisiana coast. We were shutdown for a good period of time.
I agree that there could very well be a sell-off, but the only ones taking profits would be the day traders.
The recent movements would have to be the institutional buyers coming in quickly and selling out quickly in order to take short term profits. The day traders are probably making money too, but they come and go.
The BS that you here about news affecting the markets is mostly horsepoop. All I see is short term profit taking behavior. It will probably continue for a while.
The credit squeeze is still very real. I spoke with some clients today that had their credit lines taken away from them - to the tune of 100 million.
The 3-month Overnight Index Swap is still sitting at 1.12 - meaning that banks are getting lots of cash from the Fed at the discount window, but they're not loaning anything amongst each other. The Fed will have to figure out how to get the banks to loan. If they don't, then we will see the Fed take controlling interest in some of the bigger banks in order to force the situation.
Which bank are your clients with?
I'm not sure. They do private funding of real-estate ventures and had a couple of $100 million lines of credit set up.
They got taken away because they weren't currently being tapped.
Auto dealers from around the nation are running into the exact same problem.
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