Dow Jones lookin' nasty today

[jburton]

http://moneycentral.msn.com/scripts/webquote.dll?iPage=qd&Symbol=%24INDU

Down 108 so far...

[Jacobin]

1. It's become apparent, even to the draculas in the market

that the war is lost and that bedlam in the Middle East is going to be rampant and costly. Oil supplies also probably more in jeopardy than ever.

Did I mention that interest rates will be going through the roof soon?

[ScreamingMeemie]

6. Tell me about it. As a real estate appraiser I can barely catch my

breath for all the panicked who are rushing to buy homes, refinance etc for fear of the jump.

It's giant pus filled blister that's about to pop wide open...

[donsu]

19. there was 2 pipeline blowups in the last couple of days in Iraq

so the output is way down.

[Jacobin]

25. oopsy daisy

Can't seem to get that oil out of IraqNam can they?

[quinnox]

2. tell me about it

it has been unpleasant lately in the stock market

[Yo_Mama_Been_Loggin]

11. Lately?

How about since Bush has been in office. I've been investing since the Reagan years and the stock market always went up over the long term. It's been at best spinning its wheels during the reign of the dim son.

[karabekian]

3. its because the fed

hasn't raised interest rates. There will be a big rally when they do. It can't be far off.

[LoverOfLiberty]

7. I think it is the opposite

The market is falling on fears of an impending increase (due to inflation and the "hot" economy")

[krkaufman]

8. Rising interest rates are bad for the market.

Higher interest rates make investments linked to the fed rates more attractive, and stocks less.

[revcarol]

21. Nobody's investing.

Unused capacity because people won't buy and the economy sucks. Many businesses sitting on piles of cash after "downsizing."

Edit: Nobody's investing in plant, equipment, computer upgrades, the usual "business investment."

[AP]

9. I thought the fed expected rallies after they lowered interest rates?

Now, raising interest rates is supposed to make the market rally?

My head hurts.

If the feds raise interest rates, the market will take a big hit, as will real estate. And since nobody makes money from working for a living any more...

[dkamin]

26. ???

What are you talking about? Higher interest rates are viewed as really really bad for our consumerist, debtor society. They will almost certainly lead to more bankruptcies, a devaluation of real estate, and slower growth. They could be the straw that breaks our economy's back.

[polar]

4. Dow below 10k

It's been a while since the Dow has been below 10,000. I thought to myself a while back, "if the dow drops below 10k again we're in trouble." I hope I'm wrong, but this could be a sign of things worse to come. Gas prices in Atlanta will be at 2.00 a gallon soon. (At about 1.82 now). In my lifetime, I've never seen gas prices creep up and up and up without ever dropping the slightest bit. Things are BAD, and unfortunately they're only going to get worse.

[paulk]

23. kind of a big psychological barrier - 10k

I expected this to be bigger news than it has been. Hardly a peep on the tv - maybe there's too much other stuff going on.

I'm thinking the next few months will show how strong Bush's "recovery" actually is.

[calimary]

24. Hey, be glad for those gas prices while you got 'em.

Ours hovers around $2.40 around L.A.

[newyawker99]

28. Hi polar!!

Welcome to DU!! :toast:

[livetohike]

5. Everyday it is a new excuse

Interest rate worries, oil prices, the war in Iraq, etc. Seems like more bad news affecting the Dow than good news. (when the stock market is down it seems a greater percentage drop than when it increases). Therefore, in my simple mind, there is more bad news than good.

But according to Bush and company, the economy is doing just fine.

[Bandit]

12. But according to Bush and company, the economy is doing just fine.

You do know that Bush* and Company LIES. :shrug: They have virtually zero credibility.

[livetohike]

13. They never had any with me

:-)

Especially after 9/11, when my entire neighborhood was waving their flags. Then again, I live in a Marine town.

People are slowly waking up. I'm still waiting for the media to realize it is okay to criticize Bush and his policies.

Do I believe anything Bush and co. say? No.

[the_real_38]

10. This I can tell you about George W. Bush -

if he pisses off the money people, then he's done. He can treat the rest of us peasants like dirt, subvert our future with his tax cuts, send our kids off to die - but if you piss off rich people with some general market collapse, then you aren't going to survive that.

[the_real_38]

14. Looks like a perfect storm brewing....

... Oil prices are rising, Capital flight seems to be occuring (countries don't want to put money in our finanical markets while we're running these huge trade and budget deficits), and the political situation is so touchy now.

[nostamj]

15. not a pretty picture

[the_real_38]

16. Might see a real meltdown here....

.... down 151

[yellowcanine]

17. INFLATION rearing it's ugly head. Investors are nervous.

$40 oil, $2 gasoline, real estate market bubble - if it bursts, foreclosures go up and credit gets tight.......

1960's- Guns and Butter + tax cuts lead to Big Deficits and INFLATION in the 70's.
2004-Guns and Butter + tax cuts lead to Humongous Deficits and ???????.

Thanks, George!

[Beetwasher]

18. Is This Phase II of the Bear?

I read an excellent article not too long ago that predicted this because it hypothesized that bear markets come in two phases. The second phase comes after a rebound. It was terrifically sourced and the hypothesis was solidly backed up by historical data. Anyone else read that? I forgot who wrote it but it was an excellent read.

[wicket]

20. Double Dip Recession?

Is that the same as a so-called double dip recession?

[ProfessorGAC]

22. I'd Say No!

First, the recession double dipped a long time ago. Secondly, since the employment picture is not very strong, particularly when indexed to the median household income, we've never actually pulled out of the recessionary period.

Corporate profitability is still down in almost all industrial sectors. Profitability isn't as bad as it was 18 months ago, but still poor compared to the period 1994 - 2000.

So, this isn't really a double dip, for two reasons. First, we've been rollercoastering on GDP growth for more than 30 months, so the dips have been multiple already, and we've never fully pulled out of the downturn for us to double dip back down.
The Professor

[the_real_38]

27. kick

n/t

[revcarol]

29. What's the DOW now?

Couldn't find the daily stock market thread.

[truebrit71]

30. Dow -72 Nasdaq -28

[revcarol]

31. Pumpin' it up before the close?

Seems we might be getting some action from the powers that be.

[the_real_38]

32. Looks like a sucker's rally to me...

... still a few day traders left over from the 90's with a couple hundred bucks, figuring we've hit the bottom.

[MISSDem]

33. The market was below 10,000 the last time in December

and when the interest rates rise at least you make money on your CDs and savings accounts and stuff.