Are we looking on Tuesday at a one-day stock market collapse like in 1987?

[Faygo Kid]

I don't have to post links to the indications of what's coming. They are all over DU. As I posted elsewhere tonight, buckle your seat belts. It's going to be a bumpy ride.

[keep_it_real]

1. We shall see

[edhopper]

2. Probably

worse.

[whistle]

3. Probably yes through the end of the week

[leftofthedial]

4. here's hoping

the faster the building burns, the sooner we can deliver justice to the arsonists and rebuild

[Faygo Kid]

10. Yeah, but a lot of poor and average people are going to get hurt in the crossfire.

I don't disagree that dramatic changes need to be made, but as somebody who grew up in a poor single-parent household, don't forget that the burning building is going to take down a LOT of poor and middle-class people with it. So temper that "hope" with the reality of the harm that is coming. Donald Trump will weather this storm nicely, but a lot of workers are going to pay the price, just as they did with the Enron collapse (of which we hear . . . nothing).

[leftofthedial]

27. they're getting hurt one way or another

bleed fast or bleed slow

capitalism loves ONLY the one with the most capital.

it ALL has to come down

and hard!

[Ikonoklast]

5. Asian markets getting clobbered right now.

Hang Sen Index off 6.47% already.

[Faygo Kid]

6. Wow, thanks. That should be posted by itself.

Deserves a post. Consider it, and thanks.

[Nite Owl]

7. Looks like a whole lot of

ugly for tomorrow. We are likely soon due for a strong rally but so much support was broken it looks like the bulls have left the scene and the bears are in going to be in control for a while.

[Ichingcarpenter]

8. The Feds will but the brakes on which they do at -350

however, it will be temporary and the market will continue to fall
in the next month way below 10,000.

Watch the bond market, it is next.

[Ikonoklast]

12. I posted on another thread that the curbs will be in

Before lunch.

Might not even take that long.

[Ichingcarpenter]

14. They have the M-3 money supply to pour money in to the market

which they can do now, but that kind of shell game only lasts a day or two
so the drop will continue.

9-10% drop in Japan since Monday.

Maybe a war with Iran will take the American peoples
mind off of the economic meltdown for a couple of days.

[Ikonoklast]

16. Any injection of capital at this point

Will cause nothing but a blip.

Looks like trillions of dollars worth of equity is vanishing worldwide overnight.



Nikkei off almost 4.6% today, two year low......so far.

[Ichingcarpenter]

18. Trillions were poured into the banking system since August by the Feds

Just add it up and that is money we gave banks.

http://search.us.reuters.com/rsearch/rcomSearch.do?blob=Fed+added++in+temporary+reserves+to+the+banking+system+&site=US&srch_Tab=&srch_Results=&srch_MoreResults=

[Ichingcarpenter]

19. The market will be lower than when Bush came to office tomorrow.

and if a pundit doesn't pick up on that,
they are just missing the point as normal.

[whistle]

9. That would require a one day drop of more that 22.6%, so can we see a

...one day move in the DJIA from 12,200 pts to 9440? That would erase ALL the gains which Shrub lays claim to over the past seven years in just a single day! Well, how about watching 75% of stock values disappear before Bush leaves office? That I can imagine happening given that Bush has absolutely nothing to offer to stop what is happening right noe

[FlyingSquirrel]

11. What else happened in 1987? Hmmm lemme think....

Oh yeah.... It was just before REAGAN's last year in office after 7 years of Reaganomics!

Coincidence?

[tabasco]

23. The Dow was about 10,600 when Bush came in. n/t

[Lone_Star_Dem]

13. I'm not convinced of it

Now, I could be wrong, but I don't think you'll see the DJIA react the same way the European and Asian markets have. It was open on Friday when the "stimulus" package was announced. It didn't like it but it didn't hate it either.

[FlyingSquirrel]

15. I don't think the "stimulus package" had anything to do with the slide over there

And these things have a way of snowballing. You have a lot of worried people over here looking at what just happened and they'll be ready to go first thing in the morning.

[Lone_Star_Dem]

21. Well, perhaps not the stimulus package as much as a lack of a cure

That coupled with the write-down by the Bank of China related to the US subprime disaster was what led the sell off.

The US market will fall, don't think I'm suggesting otherwise, but I still not convinced it will be the major bloodletting tomorrow that's some are predicting. But then I just may not consider the same thing a bloodletting as others do.

One thing I believe is that the US market is quick on it's way to a bear market. Even if I don't believe it will pass that hurdle all on one day. It still has to shed another 6% or so to reach that mark. However, I won't be surprised to see it reach that mark over the next two sessions.

[2hip]

22. Me neither

Contrary to popular opinion, I think some investors will see the recent NASDAQ and DJIA blood bath as a buying opportunity and I think we'll see a little upside action for a bit. Technically speaking, both the NASDAQ and DJIA are at the .5 Fibonacci retrace level with the USD moving up while oil and gold are moving down. (FWIW - I called the recent drop in gold correctly but "Past performance does not guarantee or imply future success", etc. etc)




              Edwards '08 tees!

[tabasco]

29. Even with a .75% rate cut, it finished below 12,000.

Even the cheerleaders are fearful of tomorrow.

I think the dollar is going to be worth less than Charmin.

[kelligesq]

17. I dont understand-markets worldwide down-but so is gold & silver - are

they selling their gold and silver to cover their shorts?

gold & silver should be going up in bad markets - only reason I can see for it going down is the calls on the shorts/puts ????

[Ichingcarpenter]

20. The deal now is on currency

and the shifting means that trade in commodities.
Gold will still be OK, but major players are looking at
the trade on the currency on the world market that gives the most.


THE ECONOMIC STRUCTURES that you recognize will be in major transitions, since the old school of economic thought is in chaos and been proven lacking.

[Tatiana]

25. Will the Chinese & other foreigners start buying up stock, temporarily staunching the bloodletting?

<snip>

For much of the world, the United States is now on sale at discount prices. With credit tight, unemployment growing and worries mounting about a potential recession, American business and government leaders are courting foreign money to keep the economy growing. Foreign investors are buying aggressively, taking advantage of American duress and a weak dollar to snap up what many see as bargains, while making inroads to the world’s largest market.

Last year, foreign investors poured a record $414 billion into securing stakes in American companies, factories and other properties through private deals and purchases of publicly traded stock, according to Thomson Financial, a research firm. That was up 90 percent from the previous year and more than double the average for the last decade. It amounted to more than one-fourth of all announced deals for the year, Thomson said.

During the first two weeks of this year, foreign businesses agreed to invest another $22.6 billion for stakes in American companies — more than half the value of all announced deals. If a recession now unfolds and the dollar drops further, the pace could accelerate, economists say.

The surge of foreign money has injected fresh tension into a running debate about America’s place in the global economy. It has supplied state governors with a new development strategy — attracting foreign money. And it has reinvigorated sometimes jingoistic worries about foreigners securing control of America’s fortunes, a narrative last heard in the 1980s as Americans bought up Hondas and Rockefeller Center landed in Japanese hands.

With a growing share of investment coming from so-called sovereign wealth funds — vast pools of money controlled by governments from China to the Middle East — lawmakers and regulators are calling for greater scrutiny to ensure that foreign countries do not gain influence over the financial system or military-related technology. On the presidential campaign trail, the Democratic candidates have begun to focus on these foreign funds, calling for international rules that would make them more transparent.

http://www.nytimes.com/2008/01/20/business/20invest.html?bl=&ei=5087&en=0019b93b4bb1c219&ex=1201150800&pagewanted=print

[Ichingcarpenter]

28. There is an equilibrium that must be taken slowly

or the currency markets may collapse.

Don't worry about that, for now, but the dollar will be artificially propped up, by the players until something is agreed upon, to prevent its collapse in a timely manner.

[Eurobabe]

24. Yes, I say down 450 for the day.

At least. :yoiks:

[JCMach1]

26. My hope is that much of the pain in the US is priced-in already

that was NOT the case in Asia and Europe...

There will be a big initial drop which should ease as the day goes on...

If you are a trader, just bring a change of panties... you might need it.