Just a few days ago the liar in the White House said the economy was strong......

.... everyone knew he was lying again

January 17, 2008

Dow Plunges More Than 300 Points on Grim Outlook

By MICHAEL M. GRYNBAUM

The year is not starting off well on Wall Street.

Stocks plunged on Thursday as investors confronted new indications of the

depth of subprime losses and housing woes. The Dow Jones industrial average

lost more than 300 points, bringing its decline to 15 percent since its peak

in October.

Since Jan. 1 alone, the Standard & Poor's 500-stock index, a broad measure

of the financial markets, is down more than 9 percent. And the Russell 2000

index, which tracks small companies, is now officially in a bear market, 20

percent below its peak.

A dismal report on manufacturing activity caught investors by surprise on

Thursday morning, sending the main indexes into the red after an early stint

in positive territory.

The report, from the Federal Reserve, found that Philadelphia-area

manufacturers had contracted much more than expected in a January survey,

reaching a six-year low. A similar drop in the index occurred in early 2001,

just before the onset of the last recession.

"Basically every day now, you have more and more investors leaning toward

the camp that yes, this is going to be a recession, and it could be a severe

one," said David Kovacs, a quantitative investment strategist at Turner

Investment Partners in Berwyn, Pa.

The distress in the financial markets manifested itself on many fronts.

Shares of MBIA and Ambac, two bond guarantors that have big exposures to

faltering mortgage securities, tumbled Thursday after credit ratings firms

said they would re-examine the companies financial health weeks after

affirming the firms' ratings. Ambac fell 52 percent, and MBIA closed down 31

percent.

The Dow industrials ended the day at 12,159.21, down 306.95, or 2.5 percent.

The S.& P. 500 shed 2.9 percent, and the technology-heavy Nasdaq composite

was off 2 percent.

In testimony in Washington on Thursday, Ben S. Bernanke, the Fed chairman,

reiterated recent warnings about an imminent drop-off in consumer spending.

Mr. Bernanke also hinted that the Fed would lower interest rates, perhaps by

half a point, at its meeting later this month, saying that the central bank

would "stand ready to take substantive additional action as needed to

support growth."

Investors usually react favorably to evidence of a rate cut, but they

appeared unimpressed by Mr. Bernanke's promise to support a fiscal stimulus

package to prop up the ailing economy.

"By the time they actually pass anything, it will be past the time we need

it," said James Paulsen, a strategist at Wells Capital Management, who

echoed some of the skepticism on Wall Street about the plan.

Other analysts said the chairman was leaning on the government in lieu of

aggressively cutting rates. "The market is frustrated with Bernanke," Mr.

Kovacs said. "Bernanke said it would be nice to have an economic stimulus

package to help him with his fight. You didn't see Greenspan asking for

help."

Regardless of where that help comes from, investors agree that the economy

could use a shot of adrenaline. Anxieties were stoked again on Thursday by

the release of yet another round of bad data on the housing industry.

Groundbreakings for new homes fell last month to their slowest pace in 16

years, the government said, and economists expect the market to soften well

into the middle of this year.

Meanwhile, traders were reminded that the fallout from last year's subprime

collapse is still spreading. Merrill Lynch, which ousted its chief executive

in the wake of substantial losses from the troubled mortgage market,

reported a $9.8 billion loss for the fourth quarter, the worst performance

in company history.

The news came on the back of similar write-downs at Citigroup, which was

also badly hurt by bad bets on soured mortgage-backed securities. Investors

are worried that Wall Street write-downs will make banks less willing to

lend, a trend that would cut off a primary source of lifeblood for the

economy.

"It's compounding investors' fears about how widespread the losses really

are," said Hayes Miller, an analyst at Baring Asset Management in Boston.

Still, some analysts said that jaded investors may have been unfazed by

Merrill's loss, which reiterated much of what market watchers already know

about problems at the big Wall Street banks. The poor housing report may

have been met by a similarly sleepy reaction, analysts said, who noted that

too much bad news can sometimes leave investors numb.

Crude oil slipped 71 cents, settling at $90.13 a barrel, in trading on the

New York Mercantile Exchange. The yield on the 10-year Treasury note, which

moves opposite to its price, ticked down slightly.

The euro was up slightly against the dollar, and the price of gold fell

after several days of gains.

In message news:hBUjj.67891$rc2.45853@bignews1.bellsouth.net, Sid9 sprach

forth the following:

> Stocks plunged on Thursday as investors confronted new indications of

> the depth of subprime losses and housing woes. The Dow Jones industrial

> average lost more than 300 points, bringing its decline to 15 percent

> since its peak in October.

>

> Since Jan. 1 alone, the Standard & Poor's 500-stock index, a broad

> measure of the financial markets, is down more than 9 percent. And the

> Russell 2000 index, which tracks small companies, is now officially in

> a bear market, 20 percent below its peak.

1. Do you expect the market to go straight up?

2. Do you know where the Dow was five years ago?

Fred Garvin, Male Prostitute wrote:

> In message news:hBUjj.67891$rc2.45853@bignews1.bellsouth.net, Sid9

> sprach forth the following:

>

>> Stocks plunged on Thursday as investors confronted new indications of

>> the depth of subprime losses and housing woes. The Dow Jones

>> industrial average lost more than 300 points, bringing its decline

>> to 15 percent since its peak in October.

>>

>> Since Jan. 1 alone, the Standard & Poor's 500-stock index, a broad

>> measure of the financial markets, is down more than 9 percent. And

>> the Russell 2000 index, which tracks small companies, is now

>> officially in a bear market, 20 percent below its peak.

>

> 1. Do you expect the market to go straight up?

>

> 2. Do you know where the Dow was five years ago?

The "Economy" is not the market.

The economy is the hardships that

Republican mismanagement of our

economy and government has

brought to ordinary people of America.

$300 to $800 dollar tax gift from the

government is a band-aid to the

Republican created problems

In message news:uQUjj.67897$rc2.56867@bignews1.bellsouth.net, Sid9 sprach

forth the following:

> Fred Garvin, Male Prostitute wrote:

>> In message news:hBUjj.67891$rc2.45853@bignews1.bellsouth.net, Sid9

>> sprach forth the following:

>>

>>> Stocks plunged on Thursday as investors confronted new indications of

>>> the depth of subprime losses and housing woes. The Dow Jones

>>> industrial average lost more than 300 points, bringing its decline

>>> to 15 percent since its peak in October.

>>>

>>> Since Jan. 1 alone, the Standard & Poor's 500-stock index, a broad

>>> measure of the financial markets, is down more than 9 percent. And

>>> the Russell 2000 index, which tracks small companies, is now

>>> officially in a bear market, 20 percent below its peak.

>>

>> 1. Do you expect the market to go straight up?

>>

>> 2. Do you know where the Dow was five years ago?

>

> The "Economy" is not the market.

The article is about the market, dickwad.

Don't you have a baby to abort or something?

Hi,

I dont think he was a liar, he just doesnt understand the situation,

you just have to look at his record running companies before he was

elected, all of them went into the ground.

Really its the American medias fault we are in this mess for not

investigating his financial competence during his election campaign,

its easier for the press to concentrate on easy things like the suit

someone is wearing rather then actually doing some work.

Thanks

On 18 Jan 2008 03:08:35 GMT, "Fred Garvin, Male Prostitute"

<nospam@whitehouse.gov> wrote:

>In message news:hBUjj.67891$rc2.45853@bignews1.bellsouth.net, Sid9 sprach

>forth the following:

>

>> Stocks plunged on Thursday as investors confronted new indications of

>> the depth of subprime losses and housing woes. The Dow Jones industrial

>> average lost more than 300 points, bringing its decline to 15 percent

>> since its peak in October.

>>

>> Since Jan. 1 alone, the Standard & Poor's 500-stock index, a broad

>> measure of the financial markets, is down more than 9 percent. And the

>> Russell 2000 index, which tracks small companies, is now officially in

>> a bear market, 20 percent below its peak.

>

>1. Do you expect the market to go straight up?

Like it's going straight down?

>2. Do you know where the Dow was five years ago?

Why not go back to when Bush took over. The market (Dow) was at

10,600. it's now about 12,200 - or a 15% increase or a little over 2%

a year - not even keeping pace with inflation. Factor in the drop of

the dollar (33% under Bush) and everyone's a loser except those

investors who hedged against the dollar with Euros or invested

internationally. And all this is satisfactory to you? If so I've got

some Confederate bonds that would fit extremely well into your

portfolio.

WB Yeats

In message news:5ak1p3thkq32a87b1e6esh5va5par017aj@4ax.com, sprach forth

the following:

> On 18 Jan 2008 03:08:35 GMT, "Fred Garvin, Male Prostitute"

><nospam@whitehouse.gov> wrote:

>

>>In message news:hBUjj.67891$rc2.45853@bignews1.bellsouth.net, Sid9 sprach

>>forth the following:

>>

>>> Stocks plunged on Thursday as investors confronted new indications of

>>> the depth of subprime losses and housing woes. The Dow Jones industrial

>>> average lost more than 300 points, bringing its decline to 15 percent

>>> since its peak in October.

>>>

>>> Since Jan. 1 alone, the Standard & Poor's 500-stock index, a broad

>>> measure of the financial markets, is down more than 9 percent. And the

>>> Russell 2000 index, which tracks small companies, is now officially in

>>> a bear market, 20 percent below its peak.

>>

>>1. Do you expect the market to go straight up?

>

> Like it's going straight down?

It's not going straight down for anyone who's been in it for more than a

couple weeks.

>>2. Do you know where the Dow was five years ago?

>

> Why not go back to when Bush took over.

Because smart investors plan for periods longer than seven years.

> The market (Dow) was at

> 10,600. it's now about 12,200 - or a 15% increase or a little over 2%

> a year - not even keeping pace with inflation. Factor in the drop of

> the dollar (33% under Bush) and everyone's a loser except those

> investors who hedged against the dollar with Euros or invested

> internationally.

I did both. I'm smart.

> And all this is satisfactory to you?

The dollar is different from the stock market. Changing the subject when

you've lost one argument is hardly good debate form.

> If so I've got

> some Confederate bonds that would fit extremely well into your

> portfolio.

I'm for the gold standard. And you?

On 21 Jan 2008 01:21:23 GMT, "Fred Garvin, Male Prostitute"

<nospam@whitehouse.gov> wrote:

>In message news:5ak1p3thkq32a87b1e6esh5va5par017aj@4ax.com, sprach forth

>the following:

>

>> On 18 Jan 2008 03:08:35 GMT, "Fred Garvin, Male Prostitute"

>><nospam@whitehouse.gov> wrote:

>>

>>>In message news:hBUjj.67891$rc2.45853@bignews1.bellsouth.net, Sid9 sprach

>>>forth the following:

>>>

>>>> Stocks plunged on Thursday as investors confronted new indications of

>>>> the depth of subprime losses and housing woes. The Dow Jones industrial

>>>> average lost more than 300 points, bringing its decline to 15 percent

>>>> since its peak in October.

>>>>

>>>> Since Jan. 1 alone, the Standard & Poor's 500-stock index, a broad

>>>> measure of the financial markets, is down more than 9 percent. And the

>>>> Russell 2000 index, which tracks small companies, is now officially in

>>>> a bear market, 20 percent below its peak.

>>>

>>>1. Do you expect the market to go straight up?

>>

>> Like it's going straight down?

>

>It's not going straight down for anyone who's been in it for more than a

>couple weeks.

>

>>>2. Do you know where the Dow was five years ago?

>>

>> Why not go back to when Bush took over.

>

>Because smart investors plan for periods longer than seven years.

Guess that leaves you out. You referenced 5 yrs. ago which, last I

looked, was less than 7 years ago - unless you're using the Bush Math

where plus is minus, up down, etc; 2nd Grade math must be a bitch.

>> The market (Dow) was at

>> 10,600. it's now about 12,200 - or a 15% increase or a little over 2%

>> a year - not even keeping pace with inflation. Factor in the drop of

>> the dollar (33% under Bush) and everyone's a loser except those

>> investors who hedged against the dollar with Euros or invested

>> internationally.

>

>I did both. I'm smart.

Sure ya did Gomer.

>> And all this is satisfactory to you?

>

>The dollar is different from the stock market. Changing the subject when

>you've lost one argument is hardly good debate form.

It's all connected Gomer.

>> If so I've got

>> some Confederate bonds that would fit extremely well into your

>> portfolio.

>

>I'm for the gold standard. And you?

Figures.

WB Yeats