Posted on 05/06/2010 4:23:24 PM PDT by blam
Stock Market Panic Dow Crash 1000 Points Before Fed Steps in to Buy
Stock-Markets / Financial Crash
May 06, 2010 - 02:56 PM
By: Nadeem Walayat
The sovereign debt crisis shock waves emanating out of Greece triggered a stock market Free fall crash today as the Dow sliced through support after support to all the way below Dow 10k, hitting a low of 9,872 before the Fed as part of the Plunge Protection Team (PPT) stepped in to halt the panic selling and triggering an equally phenomenal a 700 point reversal less than half an hour from today's close.
The imbecilic banking sector led the collapse in stock prices as a consequence of the sectors huge exposure to subprime government bonds such as the Euro Zones PIIGS that continue to slump in the face of a defacto Greece Debt Default.
The stock market rally has been in an increasingly weakened state as it entered the window for a significant correction that was forecast to occur between early and Mid May (23 Mar 2010 - Stocks Stealth Bull Market Trend Forecast Into May 2010 ).
My weekend analysis (02 May 2010 - Greece Debt Crisis Storm Cripples Stock Market Rally Resulting Stock Price Churn ) concluded that the crippled rally which just managing to hang onto support at 10,974 at the time was less than 40 points from the SELL trigger of 10,970 (there had been NO Sell trigger triggered since late Feb 2010) which would initial target a trend to 10,750 and then 10,550. Both of those levels went up smoke in today's panic stock market price action which demands in depth technical analysis that will follow this weekend, preceded by yesterdays fundamental analysis on the sovereign debt crisis emanating out of Europe's Achilles Heel (05 May 2010 - Greece Economic Depression Resulting in INFLATION NOT DEFLATION Surge ).
Your Analyst hitting the Buy Button on BP Stock and looking for other bargains.
WTF????
Um - what?
Something is rotten in the state of Denmark
Using tax dollars to buy stock???? Is this a stock market bailout?
The Fed buys stocks? If so, which ones?
Fannie, Freddie, GM.....
The Fed would argue they don’t ‘buy’ stocks. But, over the recent years the PPT has stepped in numerous times to ‘save’ US.
Eeexxxactly. WTF????
Free markets? LMAO
These are more like slave markets. Obama owns them and he’s not letting them go anytime soon.
If I were a real tinfoil type, I might hypothesize that the gov could do a stealth nationalization of major sectors of the economy just by triggering plunges like this where the PPT has to step in to buy up shares in order to buoy the market. Over time, they’d build up a majority stake in a lot of companies. Once they had stakes in most of the big firms, they could just make an announcement that they now controlled those firms, and there would be nothing anyone could do.
Another method for the socialists to transfer wealth from the private sector to the government.
Please elaborate.... do they stop the trading or do they use US taxpayer dollars to stop stock slides?
The NY stock market is now a wholly owned subsidiary of the FedGov. There is no reason to trust it anymore.
This sounds like gibberish! Show me the links to Fed bailout of the market.
Nasdaq Will Cancel Trades
http://www.freerepublic.com/focus/f-news/2508314/posts
unless you are a Harvard man, or Ivy League man, forget you bub! This Ivy League /Harvard $$ crap has got to be stopped...ASAP. That's right, you heard me right.
excellent metaphor.
Too big to fail
According to Fox News the deep drop was caused by a wrong number being entered in a computer.
ML/NJ
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