PDA

View Full Version : Wall Street Suffers Worse Loss in 3 Weeks.....



MMC
06-21-2012, 05:29 PM
NEW YORK (Reuters) - Stocks posted the worst day in three weeks on Thursday on mounting evidence that slowing manufacturing growth worldwide threatened corporate profits.

Shares of energy and materials companies led declines as commodity prices fell. U.S. crude futures slipped below $80 a barrel for the first time since October and the S&P energy sector index (.GSPE) lost 4 percent. Investors said weak overseas demand was responsible for the decline in those industries.

Stocks had enjoyed a two-week run that brought the S&P up more than 7 percent on hopes for additional stimulus from the Federal Reserve.

Business activity across the euro zone shrank for a fifth straight month in June and Chinese manufacturing contracted, while weaker overseas demand slowed growth by U.S. factories.

The day's decline was the worst since June 1 when the S&P 500 fell 2.5 percent.....snip~

http://finance.yahoo.com/news/stock-index-futures-point-lower-072841401.html
Reuters 19 minutes ago<<<<<More Here.

Hit Twice in the same month yet Team Obama keeps trying to put out favorable numbers. Note they were hoping for more stimulus.

Peter1469
06-21-2012, 05:41 PM
Funny, even after the fed announced yesterday that they would continue with QE.

MMC
06-21-2012, 06:12 PM
Funny, even after the fed announced yesterday that they would continue with QE.

I think they wanted a big QE3 package. Think he will do it now that Europe will cut rates?

Shoot the Goose
06-21-2012, 10:16 PM
To be honest, as ridiculous as such money-pumping would have seemed just a few years ago, and disasterous as less of such was in the 70's, times have changed. The rest of the world, and especially all things Euro, is so fragile and fubar, that normal accounting and prudence has been out the window for the last 3 years. Money can be lost or squandered by the hundreds of billions, if not more. And such as the US can bring in a forklift of newly printed notes to fill that vacuum, and the market barely flinches. Like nothing ever happened.

The wonders of fiat currency when there is no viable competition. Amazing.


As further evidence, our own Treasury is now the holder of the largest portion of our debt, having tripled its holdings since Obama became King. And interest rates are rock bottom. Inflation an issue ... but not much.


A printing press was all that was needed. Who knew !!!

Goldie Locks
06-21-2012, 10:29 PM
To be honest, as ridiculous as such money-pumping would have seemed just a few years ago, and disasterous as less of such was in the 70's, times have changed. The rest of the world, and especially all things Euro, is so fragile and fubar, that normal accounting and prudence has been out the window for the last 3 years. Money can be lost or squandered by the hundreds of billions, if not more. And such as the US can bring in a forklift of newly printed notes to fill that vacuum, and the market barely flinches. Like nothing ever happened.

The wonders of fiat currency when there is no viable competition. Amazing.


As further evidence, our own Treasury is now the holder of the largest portion of our debt, having tripled its holdings since Obama became King. And interest rates are rock bottom. Inflation an issue ... but not much.


A printing press was all that was needed. Who knew !!!


You must be mistaken as Bernanke said we will not monetize our own debt...LOL

Shoot the Goose
06-21-2012, 10:43 PM
You must be mistaken as Bernanke said we will not monetize our own debt...LOL

LOL ... it is most certainly a house of cards. But with Europe so screwed up, and China and India and Indonesia etc. still being stuck to the economic teats of the US and Europe, we can do it. TARP was the first time my ears went way up to this new phenomenon. And concurrently, the larger loan guarantees we made to the rest of the world ... cause the US dollar is still king. Standard accounting went "poof" under these extraordinary circumstances.

Everyone was content to see replacement Monopoly money. It beat out any other option.

MMC
06-22-2012, 12:54 AM
Stimulus don't work.....nor does it create jobs.

wingrider
06-22-2012, 01:36 AM
Stimulus don't work.....nor does it create jobs.sure it does... but the cost is exorbitant,, something like 10 or 15 million dollars per job.

From Chris' thread......

The British government has run a budget surplus in only six of the 37 years since 1975. The American government has run a budget surplus in only five of the 52 years since 1960. The Canadian government has run a budget surplus in only 10 of the 46 years since 1966. As Hudson Institute scholar Christopher DeMuth asserts in a prescient paper, Debt and Democracy, Keynesian doctrine – surpluses in the good years, deficits in the bad – has morphed in the advanced democracies into perpetual stimulus. As a result, the exponential accumulation of debt means that the next generation, people still unborn, could theoretically be required to pay all of their lifetime incomes in taxes merely to make the interest payments on an enormous debt.

“The routine redistribution of wealth from future generations to ourselves is profoundly undemocratic and corrupting,” Mr. DeMuth says. “The risks … are not only economic but political. [The use of] deficit financing of current consumption now undermines spending discipline and political accountability. The reinstitution of responsible management of public debt may be essential to the sustenance of democratic self-government.”

The Washington-based Hudson Institute, founded by the famous global strategist Herman Kahn in the 1960s, is an internationally respected think tank. Mr. DeMuth, a distinguished fellow at the institute, formerly taught at Harvard University's Kennedy School of Government. His paper analyses different kinds of debt and concludes that the great democracies now routinely justify all debt as “investments” of one kind or another. “This [is] catnip for practising politicians,” Mr. DeMuth argues, “because it offers [a way to provide] constituents with more government services than taxes to pay for them.”......snip~

http://www.theglobeandmail.com/commentary/democracies-cant-live-in-perpetual-stimulus/article4299446/

The Problem with stimulus is one has to keep it going. Once it stops the money stops. Governments using stimulus to repair roads for example. Does not create jobs. Not Unless they are creating a road to a district of factories. A Road that runs to the beach isn't creating jobs. Nor do roads made to look all pretty, like in upstate NY. Nice Roads. Notice how they are always empty. Which with this example then has to come with each state rep, getting their piece of that pie within the stimulus.

Peter1469
06-22-2012, 03:38 PM
We see this playing out today. Obama gives speeches bemoaning that teachers, police, and firefighters are being laid off. But many of these people were hired under money from the first bailout and that money ran out. So there is no money to keep them on the local books. But Obama forgot to mention that part.

MMC
06-22-2012, 04:51 PM
We see this playing out today. Obama gives speeches bemoaning that teachers, police, and firefighters are being laid off. But many of these people were hired under money from the first bailout and that money ran out. So there is no money to keep them on the local books. But Obama forgot to mention that part.

Of course Union Jobs being the Only jobs he is trying to create. Furthermore it is the Demo strategy to trick those into fearing that there isn't enough emergency services. To get others to believe they need more government.