BREAKING NEWS: Dow plummets 260+ points, closes below 12,000. More ...

[babsbunny]

http://investing.money.msn.com/investments/market-index?symbol=%24INDU&ocid=qbe>1=33009

http://money.msn.com/market-news/post.aspx?post=c450ea55-d032-428d-8369-75defea66962>1=33009

Dow falls 266 as economic fears mount
The blue chips drop below 12,000, and the S&P 500 goes negative for 2011. The worry: Weakening consumer spending. President Obama signs the debt-ceiling bill. Gold soars above $1,640. GM and Ford sales in July beat estimates.

Updated: 4:10 p.m. ET

Stocks suffered their worst losses in as much as a year as fears about a slumping economy overshadowed any benefit from the debt-ceiling package that President Barack Obama signed this afternoon.

Gold (-GC) jumped above $1,650 an ounce in electronic trading -- and Treasury securities rallied -- as many investors looked for safety.

[HereSince1628]

1. Heh, this is how Wall St rewards the good work in DC.

[Pale Blue Dot]

2. This makes it a clean sweep.

This wasn't even a good POLITICAL move by Obama. This is going to cost us jobs and the Democrats the presidency, and he didn't even get a single DAY of good PR - not from Wall Street, and certainly not from Main Street.

[Bluebear]

16. Looks like they hit the trifecta

[Bluebear]

3. Thank god it passed!

[Pale Blue Dot]

5. I'd LOL if I wasn't scared out of my mind. nt

[dbt]

6. +42!

:evilgrin:

[BOG PERSON]

25. lol

:thumbsup:

[TomClash]

4. Deficit reduction

The great panacea. Dow plummets - what a surprise. :puke:

[Yavin4]

7. Gold Is At $1656!!!!

Yee Haw!!

[jsamuel]

9. Wow, talk about a bubble

I am more worried about deflation right now than inflation.

[banned from Kos]

10. Fuck gold. Wall St looks forward and they see anemic GDP - less than 1%

which tells us job growth won't happen and consumer spending will decline.

[scheming daemons]

8. And if the DOW went up, everybody would be saying "See? It's a Wall St giveaway!!!"

Markets go up and down.

[Common Sense Party]

12. Bingo. n/t

[MineralMan]

15. +10

You speak truth.

[ret5hd]

21. that may be, ...

but you told us gold was definitely going DOWN.

[lpbk2713]

11. Tomorrow's lead story on the OxyRush Bullshit Hour.

Congrats. You beat him to it. :eyes:

[Pale Blue Dot]

17. That's right. It's the OP's fault.

It's anyone's fault but the President's.

[Bluebear]

19. Yes the op should STFU and ignore the story

:eyes:

[Fuddnik]

22. Fact is, any credible economist will tell you it's another nail in the economy's coffin.

By credible, I mean just about any non Chicago School Fantasist.

[Major Hogwash]

13. He didn't sign it into law fast enough!!

Darn the luck.

[xchrom]

14. Recommend

[jimlup]

18. Buy on the rumor sell on the news...

But I guess it didn't work this time - it was down down and then really down...

[jsamuel]

20. that only works if it is good news

A lot of people don't think the deal was good news. (not that the extension was bad news)

[jimlup]

23. Yeah - I've been wondering about that.

But I was surprised that the market tanked today. I wonder what I needed to know yesterday to predict it. Because I pretty much knew at the start of the day that the debt deal would pass. Maybe it is the bad economic news driving the whole thing and once the debt deal news was "over" the market sold off because it had no good news coming to hold it up anymore.

[jsamuel]

24. there has been sign after sign that there is economic trouble and the fact

that passing the debt ceiling raise was so difficult, was itself a problem. I moved my money out of the market on Wednesday of last week anticipating this.

That said, I don't think the economy is going to fully tank again, but will falter with mixed signs of recovery for some time. I now have little hope of another stimulus passing to reverse the trend. That is what the debt limit debate showed, that a stimulus is all but impossible while Republicans control the House and Obama and the Democrats are not strong enough to force them to do anything.