News and Politics | October 24, 2008 | 25 comments

Stocks dive on belief global recession is at hand

source: http://news.yahoo.com/s/ap/20081024/ap_on_bi_st_ma_re/wall_street;_ylt=AsJq_aimri2kyKde04QSg...

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Pericles_Lewnes
NEW YORK – Wall Street joined world stock markets in a precipitous plunge Friday, with the Dow Jones industrials dropping more than 400 points in the opening minutes of trading. The growing belief that the world will suffer a punishing economic recession has investors furiously dumping stocks.

The massive decline was caused by increasingly grim news from overseas. In Japan, shares of Sony sank more than 14 percent after it slashed its earnings forecast for the fiscal year. In Germany, Daimler's stock dropped 11.4 percent in morning trading after it reported lower third-quarter earnings and abandoned its 2008 profit and revenue guidance.

Japan's Nikkei stock average fell a staggering 9.60 percent. In Europe, Germany's benchmark DAX index was down 10.76 percent, France's CAC40 dropped 10 percent while Britain's FTSE 100 sank 8.67 percent after the government said its gross domestic product fell 0.5 percent in the third quarter, putting the country on the brink of recession...

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25 comments // Stocks dive on belief global recession is at hand

  • AveryMoore
    • 0
      AveryMoore  

    • Mrburns,

      Why wait?

      You want to quit work? You want to smoke pot?

      Big oil, big banks, and poor little Wall Street have gone out of their way to leave you with no alternative.

      You should thank them, oh yes, and thank Phil Gramm, John McCain and Geoge Bush for promoting exactly the deregulatory path that made this meltdown inevitable.

      And don't forget to donate all your future earnings to continue subsidizing big oil, big banks, and wall street - because aside from grouse about losing the election, and ignore what really caused this fiasco, you really haven't much to say that looks coherent..

      You might just as well quit work and smoke pot, if it will made you feel any better.

    • 4 years ago
  • mrburns
    • 0
      mrburns  

    • I am ready for obamanation to become pres. so I can quit work and have my bills paid by rich people. I am tired of working.

      Maybe I can smokepot all day and not have to worry about being drug tested at work.

      Praise the baby lord barack and take all my bills away.

      God bless america
      God bless big oil
      God bless pokesmot, because he has nothing else to do.

    • 4 years ago
  • sillywabbit
    • 0
      sillywabbit  
    • mrburns:

      I believe Obama is asking for Americans to sacrafice for the well-being of the nation. When America goes to war, Americans should be willing to sacrafice is the cause is justified and righteous. Where is the lower gas prices and oil money they promised would rebuild Iraq? It was supposed to be self-sustained.

      Bushies ask the masses to sacrafice for the well-being of corporation. That is the nature of the fascists.

      Truth be known, the healthiest thing for Americans is to let the financial system collapse and allow smaller businesses to fill the void. Local and sustainable wins the day.

    • 4 years ago
  • kennymotown
  • borymp
    • 0
      borymp  

    • Hey...daboz. Allow me to pull your head out of the clouds:

      So who is to blame? There's plenty of blame to go around, and it doesn't fasten only on one party or even mainly on what Washington did or didn't do. As The Economist magazine noted recently, the problem is one of "layered irresponsibility ... with hard-working homeowners and billionaire villains each playing a role." Here's a partial list of those alleged to be at fault:
      The Federal Reserve, which slashed interest rates after the dot-com bubble burst, making credit cheap.

      Home buyers, who took advantage of easy credit to bid up the prices of homes excessively.

      Congress, which continues to support a mortgage tax deduction that gives consumers a tax incentive to buy more expensive houses.

      Real estate agents, most of whom work for the sellers rather than the buyers and who earned higher commissions from selling more expensive homes.

      The Clinton administration, which pushed for less stringent credit and downpayment requirements for working- and middle-class families.

      Mortgage brokers, who offered less-credit-worthy home buyers subprime, adjustable rate loans with low initial payments, but exploding interest rates.

      Former Federal Reserve chairman Alan Greenspan, who in 2004, near the peak of the housing bubble, encouraged Americans to take out adjustable rate mortgages.

      Wall Street firms, who paid too little attention to the quality of the risky loans that they bundled into Mortgage Backed Securities (MBS), and issued bonds using those securities as collateral.

      The Bush administration, which failed to provide needed government oversight of the increasingly dicey mortgage-backed securities market.

      An obscure accounting rule called mark-to-market, which can have the paradoxical result of making assets be worth less on paper than they are in reality during times of panic.

      Collective delusion, or a belief on the part of all parties that home prices would keep rising forever, no matter how high or how fast they had already gone up.
      The U.S. economy is enormously complicated. Screwing it up takes a great deal of cooperation. Claiming that a single piece of legislation was responsible for (or could have averted) the crisis is just political grandstanding. We have no advice to offer on how best to solve the financial crisis. But these sorts of partisan caricatures can only make the task more difficult.

      –by Joe Miller and Brooks Jackson

    • 4 years ago
  • AveryMoore
  • daboz
    • 0
      daboz  

    • This started when the Democrats took the Majority. The fear of an Obama presidency ,, his anti-business and tax increase on Capital gains has the smart money running for foreign cover. You brought it on yourselves and have only yourselves to blame for supporting a communist that wants to redistribute THEIR WEALTH. Serves you right if you get 4 years of depression for your efforts to destroy this great country.

    • 4 years ago
  • greenspectral
  • sillywabbit
  • borymp
    • 0
      borymp  
    • greenspectral:

      I know my parents had their part in it every-time they voted republican. This is the first time ever my mother is going to vote democrat. You can only imagine the war going on in my parents house. Nothing more intriguing than two people in their 70's arguing politics. It's "out of touch" in epic proportions.

    • 4 years ago
  • greenspectral
    • 0
      greenspectral  
    • greenspectral:

      Sigh...its just a lyric from the Tool song "Aenima". I wasn't referring to my mother. In the song, the mother being spoke of is OUR earth mother, Mother Gaia, wishing she would 'flush it all away', meaning this failed civilization.

    • 4 years ago
  • borymp
  • sillywabbit
  • sillywabbit
    • 0
      sillywabbit  

    • Bin Laden - 1
      Dubya - 0

      Dear George,

      You said we should fight them there so we didn't have to fight them here. Why would you let them score so big by keeping us in a war that is being won only by American contractors?

      - SillyWabbit

    • 4 years ago
  • huntre
  • borymp
    • 0
      borymp  

    • You know...on top of all the irresponsibility.. didn't anyone see the writing on the wall when W was up for re-election? He bankrupted TWO oil companies. What one does once...one will do again. When you put someone in office that's bankrupted two oil companies...do you think he's qualified to monitor the economy while he's recklessly spending spending spending? What a joke. Now we're going to pay due to the admininstrations cluelessness and economic irresponsibility. Got my investment statement a few weeks back. Can you say, "lost faith in our system?" Soon we'll be burying money in coffee cans in our backyards like our grandparents did during the depression.

      Looks like the socialistic approach of "injecting" money into the banks isn't working too well. This issue is much bigger than any one governemnt can resolve.

      One thing is for certain... if Barack gets in office...the republicans are going to blame him for what they indirectly and directly caused.

      It's the partriotic republican way.

    • 4 years ago
  • Virtual_Will_Rogers
  • WhiteNoise
    • 0
      WhiteNoise  
    • Image

    • All the king’s men cannot put the private banking system together again: it is a Ponzi scheme that has reached its mathematical limits.

      Financial Meltdown: The Greatest Transfer of Wealth in History http://www.globalresearch.ca/index.php?context=va&aid=10589

      They Did It On Purpose: The Housing Bubble & Its Crash were Engineered by the US Government, the Fed & Wall Street http://www.globalresearch.ca/index.php?context=va&aid=10654

      The main impact will be to reinforce the concentration of wealth in the hands of creditors

      "A small group had concentrated into their own hands an almost complete control over other people's property, other people's money, other people's labor -- other people's lives. For too many of us life was no longer free; liberty no longer real; men could no longer follow the pursuit of happiness." - Franklin Roosevelt

    • 4 years ago
  • Pericles_Lewnes
    • 0
      Pericles_Lewnes  
    • Image

    • NEW YORK (AP) -- Stock markets around the world plummeted Friday and oil prices plunged to their lowest in more than a year. Even gold, the traditional safe haven in times of panic, fell sharply.
      The common denominator was growing fears that governments, central banks and finance ministers seem powerless to stop the deepening of a global recession that will slam corporate earnings and lead to deep job losses around the world.

      If the Dow drops 1,100 points before 2 p.m. the New York Stock Exchange would be forced to use "circuit breakers" that could lead to temporarily shutting the market down, something it hasn't done since 1997.

      "We are getting used to wild swings in the markets, but today's moves verge on the bizarre," said Julian Jessop, chief international economist at Capital Economics.

      Oil fell sharply ...

      The dollar plunged below 93 yen, a 13-year low...
      It was already a black Friday overseas. Japan's Nikkei stock average dropped 9.6 percent. Germany's benchmark DAX index plunged as much as 10.8 percent, France's CAC40 slid 10 percent and Britain's FTSE 100 shed 8.7 percent.
      The news was all bad. The U.K.'s third quarter gross domestic product fell 0.5 percent, putting the country on the brink of recession. Shares of Japan's Sony sank more than 14 percent when it slashed its earnings forecast for the fiscal year. In Germany, Daimler's stock dropped 11.4 percent in morning trading; it reported lower third-quarter earnings and abandoned its 2008 profit and revenue guidance.
      Emerging market economies and currencies are coming under extreme pressure. Investors are pulling money out of countries in Eastern Europe, Latin America and Asia on fears vulnerable countries will not only be hit hard by the financial crisis but may also default on debt.

      Hong Kong's Hang Seng index fell 8.3 percent and markets in India, Thailand, Indonesia and the Philippines were also down sharply...

      Investors around the world seemingly have become more convinced the global economy is on the brink of a long and painful recession, if it's not already in one...

      That means companies will be reluctant to buy new equipment or hire new workers. U.S. unemployment claims, already well into recession territory, are rising even faster than expected. Economists warn the worst is yet to come.

      On Thursday, the government said new applications for unemployment insurance rose 15,000 last week to a seasonally adjusted 478,000...

      Goldman Sachs, Chrysler and Xerox all announced they were cutting workers by the thousands...

      The White House, in unusually stark language, acknowledged... a "rough ride."

      ...Many economists expect the decline to continue into the current quarter and the first three months of 2009, if not longer. The classic definition of a recession is at least two consecutive quarters of negative growth.

      Former Federal Reserve Chairman Alan Greenspan, testifying before a House committee, said he could not see "how we can avoid a significant rise in layoffs and unemployment."

      The apparently universal gloomy outlook was feeding the selling.

      Under New York Stock Exchange circuit breakers, if the Dow drops 2,200 before 1 p.m., trading will be halted for two hours. If the threshold is breached between 2 p.m. and 2:30 p.m., the halt will last 30 minutes. Trading will continue to take place if stocks plummet 1,100 points after 2:30 p.m.

      If the index falls 2,200 points before 1 p.m., the market will close for two hours. If the decline takes place between 1 p.m. and 2 p.m., there will be a one-hour pause. The market will close for the day if stocks sink 2,200 points after 2 p.m.

      In there's a 3,350-point decline, the market would close for the day, regardless of the time.
      (AP)

    • 4 years ago
  • AveryMoore
  • 1percent
    • 0
      1percent  

    • As I've been saying for months now....

      The Global Economic Tsunami is hitting the worlds shores...

      Ride the wave before the crash.

      Ride on!

    • 4 years ago
  • regjoeschmo
  • Virtual_Will_Rogers
    • 0
      Virtual_Will_Rogers  

    • ...What goes up....
      must come down......
      Spinning wheels got to go round...
      Drop all your troubles by the River side....
      Ride a painted pony....
      and save money on gas....insurance..........
      Golden Ruler...Will......

    • 4 years ago
  • pokesmot
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