Dow Crash Coming To Your 401K (2007 to 2022)

[War-Horse]

hahah Lets see how much money the plunge protection team...aka (administration) wants to throw at this and for how long!!

Stormshadow is right...the country cant even operate on 5.25%   ......they will get the point that our pyramid scheme is collapsing....

[youandme]

hahah Lets see how much money the plunge protection team...aka (administration) wants to throw at this and for how long!!

Stormshadow is right...the country cant even operate on 5.25%   ......they will get the point that our pyramid scheme is collapsing....

S & P broke the support trendline with ease but it's being oversold, a snapback is immenent soon, but that means very little when after the snap it has only one place and that is....down.

[War-Horse]

S & P broke the support trendline with ease but it's being oversold, a snapback is immenent soon, but that means very little when after the snap it has only one place and that is....down.

Yeah...this shit is like clockwork.  Who likes rollercoasters..   The market is like trying to save a drowning man who wont grab the lifevest....matter of time.

[trab]

Relax, Relax. Bush and Benny are in control, what could go wrong?...
Steady hands on the tiller there boys...
I'm lookin forward to my Uncle Sam McDebit card from DC for a happy meal or two...
I'll buy a couple them new $20 Double cheeseburgers...

Or better yet they should give away shares of Hanks old GS. 

Its really not that bad when you think about it. Wealthy PPL with good credit can scoop up all the forclosed homes taht PPL who lost/loosing them cant get a loan for now...
Then we can start all over again..

Ya see, everything works out....

MSN wouldnt print it if it wasnt true. See - Its a GOOD THING.
http://articles.moneycentral.msn.com/Investing/Dispatch/080122markets.aspx

[Neurotoxin]

Jan. 22 (Bloomberg) -- Bill Gross, manager of the world's biggest bond fund, said the Federal Reserve's emergency cut in borrowing costs today is a ``sad testament'' to the state of the U.S. economy.

The central bank cut the target overnight lending rate to 3.5 percent from 4.25 percent after stock markets tumbled from Hong Kong to Paris amid increasing signs of a U.S. recession. Policy makers weren't scheduled to gather until next week. Gross expects the rate to fall as low as 2.50 percent.


``It's a sad testament to think the Fed has to cut interest rates eight days in front of a meeting to salvage the equity markets,'' said Gross, the founder and chief investment officer of Pacific Investment Management Co., in a Bloomberg Television interview. ``The U.S. economy is in a rather sad state of affairs in that it depends on housing and stock prices to keep going.''

[Bindare_Dundat]

Jan. 22 (Bloomberg) -- Bill Gross, manager of the world's biggest bond fund, said the Federal Reserve's emergency cut in borrowing costs today is a ``sad testament'' to the state of the U.S. economy.

The central bank cut the target overnight lending rate to 3.5 percent from 4.25 percent after stock markets tumbled from Hong Kong to Paris amid increasing signs of a U.S. recession. Policy makers weren't scheduled to gather until next week. Gross expects the rate to fall as low as 2.50 percent.


``It's a sad testament to think the Fed has to cut interest rates eight days in front of a meeting to salvage the equity markets,'' said Gross, the founder and chief investment officer of Pacific Investment Management Co., in a Bloomberg Television interview. ``The U.S. economy is in a rather sad state of affairs in that it depends on housing and stock prices to keep going.''

Other economists on the radio said the same thing. The cut is really bad news.

[Neurotoxin]

Other economists on the radio said the same thing. The cut is really bad news.

the cut was designed to help Wall Street investors. by the Fed lowering interest rates below yearly inflation, it forces big investment firms back into the market......hoping to keep ahead of inflationary pressures.

unfortunately, rate cutting will only continue to increase inflation that's out of control already.

remember the term stagflation. it's coming.........

[Neurotoxin]

Jan. 23 (Bloomberg) -- U.S. stocks dropped for a sixth day, the longest losing streak since April 2002, after forecasts of slowing sales by Apple Inc. and Motorola Inc. added to concern the economy is falling into a recession.

Apple tumbled the most in more than five years on the Nasdaq Stock Market after saying sales growth will fall to 29 percent this quarter from 35 percent in the previous three months. Motorola, the largest U.S. maker of mobile phones, posted its biggest drop since October 2002 on a forecast for an unexpected loss. Freeport-McMoRan Copper & Gold Inc., the world's second-biggest copper miner, declined to the lowest since August after earnings trailed analysts' estimates.

``I would say that we're already in a recession,'' Jack Rivkin, who oversees $126 billion in New York as chief investment officer at guy Berman, said in an interview with Bloomberg Television. ``Odds are earnings are going to be down for 2008.''

The Standard & Poor's 500 Index, which is off to its worst- ever start to a year, slid 11.31, or 0.9 percent, to 1,299.19 at 11:25 a.m. in New York. The Dow Jones Industrial Average declined 58.77, or 0.5 percent, to 11,912.42



                                         

[stormshadow]

Jan. 23 (Bloomberg) -- U.S. stocks dropped for a sixth day, the longest losing streak since April 2002, after forecasts of slowing sales by Apple Inc. and Motorola Inc. added to concern the economy is falling into a recession.

Apple tumbled the most in more than five years on the Nasdaq Stock Market after saying sales growth will fall to 29 percent this quarter from 35 percent in the previous three months. Motorola, the largest U.S. maker of mobile phones, posted its biggest drop since October 2002 on a forecast for an unexpected loss. Freeport-McMoRan Copper & Gold Inc., the world's second-biggest copper miner, declined to the lowest since August after earnings trailed analysts' estimates.

``I would say that we're already in a recession,'' Jack Rivkin, who oversees $126 billion in New York as chief investment officer at guy Berman, said in an interview with Bloomberg Television. ``Odds are earnings are going to be down for 2008.''

The Standard & Poor's 500 Index, which is off to its worst- ever start to a year, slid 11.31, or 0.9 percent, to 1,299.19 at 11:25 a.m. in New York. The Dow Jones Industrial Average declined 58.77, or 0.5 percent, to 11,912.42

Your thoughts on the rebound?

Are we propped back up because everyone knows that there will be no end in sight to cheap money?

[trab]

Your thoughts on the rebound?

Are we propped back up because everyone knows that there will be no end in sight to cheap money?

 

[youandme]

Your thoughts on the rebound?

Are we propped back up because everyone knows that there will be no end in sight to cheap money?

just my 2 cents. It was inertia, the huge slash, helped the big boys out by offering a incentive to buy.

Can't believe really that, the snap back was soooo sooon'

Oh well what goes up must come down. Bank have still not written off Bond losses.

[Neurotoxin]

Your thoughts on the rebound?

Are we propped back up because everyone knows that there will be no end in sight to cheap money?

yesterdays late afternoon action is called a short squeeze.the market was at technical support and with so many big firms shorting this market since 14,000, at some point they begin to take profits moving the market higher. remember, markets do not go straight down, we may form a temporary base and move higher in the short term from here. also, many big traders expect the Fed to cut rates again in a few days. this will boost the bank stocks which lead the market.

keep in mind, a one day, last hour rally is not a trend. if the trend begins to turn, i'll let you guys know.

[Neurotoxin]

the cut was designed to help Wall Street investors. by the Fed lowering interest rates below yearly inflation, it forces big investment firms back into the market......hoping to keep ahead of inflationary pressures.

 

[Neurotoxin]

WASHINGTON — The Federal Reserve, confronted by deepening panic in global financial markets about a possible recession in the United States, struck back on Tuesday morning with the biggest one-day reduction of interest rates on record and at least temporarily stopped a vertigo-inducing plunge in stock prices.


The Fed’s move was prompted in part by turmoil in global markets on Monday, a holiday in the United States. The Treasury secretary, Henry M. Paulson Jr., watching the same market turmoil, was anxious enough that he called White House Chief of Staff  Joshua B. Bolten, who ultimately put President Bush on the line.

In a statement accompanying the Fed’s decision, which was announced about an hour before the stock market opened for trading, officials hinted that they might reduce rates yet again at their scheduled meeting next Tuesday and Wednesday.





guys as i've stated before, Henry Paulson leads the PPT (plunge protection team) and HE was responsible for the emergency rate cut on Tuesday.(not the Fed chairman) keep in mind, when the Fed/PPT lowers rates to the point that fixed investments cannot keep up with inflation.........trader s often turn back to the market no matter how bad it is.

with the market on technical support and interest rates being lowered......i expect more UPSIDE to this market over the short term.

[youandme]

Jan. 24 (Bloomberg) -- New York regulators are pushing the biggest U.S. financial institutions to rescue bond insurers, led by MBIA Inc. and Ambac Financial Group Inc., and avert credit- rating downgrades that may further disrupt financial markets.

[Neurotoxin]

the combination of bush's stimulus program coupled with another rate cut should give the market a decent rally very soon.

it won't do anything for the recession.....but W.S. likes it !  

[Neurotoxin]

the combination of bush's stimulus program coupled with another rate cut should give the market a decent rally very soon.

it won't do anything for the recession.....but W.S. likes it ! 

also, combine the above with the Dow recently losing 2,000 points.

[Neurotoxin]

Jan. 24 (Bloomberg) -- Sales of existing homes in the U.S. fell more than forecast in December, capping the biggest annual slump in 25 years and the first decline in prices since the Great Depression.

[Neurotoxin]

the combination of bush's stimulus program coupled with another rate cut should give the market a decent rally very soon.

any rally based off interest rate cuts will ultimately fail. do not get sucked in........the worst is not over.

earning is the lifeblood of the market. more interest rate cuts or Bush handing out 600.00 checks will not "stimulate" this economy.

any rally will be sold off by the big firms.

[youandme]

any rally based off interest rate cuts will ultimately fail. do not get sucked in........the worst is not over.

earning is the lifeblood of the market. more interest rate cuts or Bush handing out 600.00 checks will not "stimulate" this economy.

any rally will be sold off by the big firms.

I think the deadcat bounce already sucked in the public investment,  wall street is having  a nice ride with this.

Bond insurers are hanging tight claiming everything is honky dorry, what's your opinion on what's to come in the finanacial sector soon?

[trab]

I think the deadcat bounce already sucked in the public investment,  wall street is having  a nice ride with this.

Bond insurers are hanging tight claiming everything is honky dorry, what's your opinion on what's to come in the finanacial sector soon?

Housekeepers and windowwashers didnot make them big green bars and volume spike on  reversals.
Professional buying initiates moves - armatures finish them  stuck in bull or bear traps.

The next bottom retest to the upside will be classic long entry plays for traders..
Largely Scalpers market the last days... Hard to even get safe short play reward/risk entry in the bloodbath.

As long as (well, until...) earnings dont puke left and right there is no reason we couldn't resume the bullmarket.
MSFT would (did) lead to that conclusion.

It dont matter (to the profs) if stocks are outlandishly overpriced. Being nimble is all that matters.
The public dont have any hope of that.

Little old ladies living on SS and saying on the nightly news, "Well, no way I'll sell my Garmin stock now. It was $100+,,,, now its $60.oo  I BELIVE IN THE AMERICAN ECONOMY.... IT WILL COME BACK..    "
Wall St says Bless her heart as they head off to The Hamptons.

That $7B event in France was prolly the last straw taht set off the European and Asian Martin L King day avalanche.
Sure made Benny look like a fool too, as if he didnt allready.

But NO base at 10 on the Dow. I Hope it touches 10 twice though.
Have fun, I am.

Neon The USA is finished, why dont you short GOOG XOM NOV RTP on the next rally? Go all in. Max out all your credit and multiply it w/ stock acct margin.

[Neurotoxin]

I think the deadcat Fedcat bounce already sucked in the public investment,  wall street is having  a nice ride with this.

Bond insurers are hanging tight claiming everything is honky dorry, what's your opinion on what's to come in the finanacial sector soon?

with the Fed expected to cut rates again next week, the financials should lead the market higher in the short term.

Dow 13,000 - 13,200 is possible with another 50bps cut, before we sell off again.

i still expect to hit 10,000 - 10,500 sometime this year.

IMO, long term investors should still avoid this market.  sucker rallies.......are for suckers.


NT

[trab]

http://www.msnbc.msn.com/id/22854862

Societe Generale.....
According to this it didnt move the markets....

3 days to unwind it due to regs of not > 10% of a market transaction.

The Guy had $73.3$B  on tap..... Outstripping the Banks Market Cap of $52.6B......

He's Dead man walking......

[youandme]

haha fedcat bounce, yes thats the more correct way to put it 

[Neurotoxin]

guys, for your reading pleasure.






Jan. 26 (Bloomberg) -- Merrill Lynch & Co. Chief Executive Officer John Thain said the outlook for U.S. consumer spending is worsening and interest-rate cuts won't stem a slump in house prices.

``The problems in the credit market are spreading, they are spreading to the consumer sector,'' Thain told a panel at the World Economic Forum's annual meeting in Davos, Switzerland. ``We are likely to see another wave of problems on the consumer-credit side.''

The U.S. economy may be heading for recession after a drop in house prices prompted a collapse in the subprime mortgage market that's roiled financial markets around the world. Global stock markets tumbled earlier this week and the Federal Reserve announced its first emergency rate reduction since 2001.

``Rate cuts and fiscal stimulus will not help the fall in house prices, so this problem is likely to continue,'' said Thain.