I’m no economist but apparently I am smarter than the current Fed Chairman Ben Bernanke and President Bush. They still have not acknowledged the recession we are in now….even after former fed Charman paul Volcker said we were in a recession yesterday.
We can all read and think and I stated categorically last March 8, 2008, that the United States was in a recession. I made this statement after mulling over the facts starting around September 2007. Turns out I was fully seven months ahead of former Fed Charman Paul Volcker who made the declaration yesterday.
By Matt Egan
Fears the U.S. will sink into a recession slammed Wall Street on Wednesday, sending the Dow plunging 700 points lower and below the 9000 threshold.
An ugly report on retail sales served as a wake-up call for the markets, reminding Wall Street that even as the ailing credit markets appear to have improved, the economy is still in a precarious state.
According to preliminary calculations, the Dow Jones Industrial Average lost 758.80 points, or 8.15%, to 8552.03, the broader S&P 500 dropped 92.11 points, or 9.23%, to 905.90 and the Nasdaq Composite lost 150.68 points, or 8.47%, to 1628.33. The consumer-friendly FOX 50 fell 64.93 points, or 8.68%, to 683.27.
The economic pessimism kept the pressure on the markets on Wednesday as the major indexes ended at session lows, never even peeking into positive territory. The selloff add to modest losses from Tuesday, combining to erase more than half Monday’s record 936-point surge on the Dow.
“There’s still a little bit of gloom and doom in front of us,” said Michael Mainwald, head trader at LEK Securities. “Until some of these government-sponsored rescue plans work their way into the [financial] system, we’re going to have these 3% to 5% moves either way.”
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Above U.S. Secretary of Treasury Henry Paulson (R) listens as Federal Reserve Chairman Ben Bernanke (L) talks about financial markets, fear of recession and the Market Stability Initiative in the Cash Room of the Treasury Department in Washington, October 14, 2008.
REUTERS/Larry Downing (UNITED STATES)
I’m no economist but I can read and think and I stated categorically last March 8, 2008, that the United States was in a recession. I made this statement after mulling over the facts starting around September 2007. Turns out I was fully seven months ahead of former Fed Charman Paul Volcker who made the brilliant deduction today, October 14, 2008, that the U.S. was in a recession. The current Fed Chairman Ben Bernanke and President Bush have still not acknowledged the recession we are in now.
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By TIM PARADIS, AP Business Writer
NEW YORK – Investors agonizing over a faltering economy sent the stock market plunging all over again Wednesday after two disheartening reports convinced Wall Street that a recession, if not already here, is inevitable. The market’s despair — fed by a stream of disheartening economic data — propelled the Dow Jones industrials down 733 points to their second-largest point loss ever, and the major indexes all lost at least 7 percent.
Traders work on the floor of the New York Stock Exchange, October 15, 2008. U.S. stocks slid at the open on Wednesday as investors worried that efforts to ease the credit crisis would not avert a recession, overshadowing solid profits from Coca-Cola Co , a bellwether for consumer spending.REUTERS/Brendan McDermid (UNITED STATES)
The slide meant that the Dow, which lost 76 points on Tuesday, has given back all but 126 points of its record 936-point gain of Monday, which came on optimism about the banking system in response to the government’s plans to invest up to $250 billion in financial institutions.
Wednesday’s selloff began after the government’s report that retail sales plunged in September by 1.2 percent — almost double the 0.7 percent drop analysts expected — made it clear that consumers are reluctant to spend amid a shaky economy and a punishing stock market.
The Commerce Department report was sobering because consumer spending accounts for more than two-thirds of U.S. economic activity. The reading came as Wall Street was refocusing its attention on the faltering economy following stepped up government efforts to revive the stagnant lending markets.
Then, during the afternoon, the release of the Beige Book, the assessment of business conditions from the Federal Reserve, added to investors’ angst….
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