Lack of autobailout sinks stocks
The Dow Jones Industrials fell more than 5 percent today, losing 427 points to close at 7,997.
It was the first time the average closed below 8,000 since March 31, 2003, when the index closed at 7,992.
Other indexes slumped more steeply. The Nasdaq fell 96.85 points or 6.5 percent to close at 1,386. The S&P 500 lost 52.54 points or 6.12 percent to close at 806.58.
Driving down stocks was news that Congress was balking at bailing out beleaguered U.S. automakers and that consumer prices fell in October, raising concerns about deflation.
Other meltdown news …
- Will drop in foreclosures stick?
- Econo-clash: optimist likes Swiss; pessimist eyes T-shirt
- FDIC moving to Irvine, now hiring
- California’s senators have different takes on auto bailout
- Double mortgage deductability! Good idea?
- Econo-clash: Optimist misses smoothie; pessimist awaits discounts
- PIMCO director: Economic recovery still far off
- Poll: Democratic voters far more supportive of auto bailout
Other business news …
- Taco Bell is not hunkering down
- SoCal inflation at 6-month low
- O.C. foreclosures plunge to 7-month low
- O.C. home price now $225,000 off peak
- Bargains boost SoCal home sales a record 67%
- O.C. Oct. homebuying up 66%
- FDIC moving to Irvine, now hiring
- O.C. hotel occupancy drops 7.6% in Sept.
- ‘Real Housewife’ parties at SoCa St. John
- First American helps fire victims with lost property records
If this isn’t a sign of a looming depression I don’t know what is. Dow 4000 here we come.
For those who don’t see it that way (as a sign of a looming depression) … maybe 7000 will enlighten them.
There has always been too much credit in the market since the late 1970’s because it delayed coming to terms with the loss of standard of living that occurred because of outsourcing US manufacturing.
However, this is a manufactured event. Why now would the Federal Reserve Bank, a private institution, be asking the government to spend more money on credit to solve a problem that was caused by too much credit?
I submit that a great deal of this is perception and perceptions have been used to a greater end. Consumers think the sky is falling and they stopped spending. If we never told them the sky was falling, I doubt it would have gotten this bad, this quickly.