Stocks Stumble Out Of The Gate

AP:

Wall Street fell in early trading Tuesday as investors cautiously awaited minutes from the Federal Reserve's Aug. 7 meeting that could provide insight into whether it may cut rates.

At the central bank's last meeting, policymakers held rates steady and said that although tight credit and the housing market may drag on the economy, inflation remains its predominant concern. The market has since tumbled further from record levels of mid-July and the Fed, raising worries about the market turmoil's effect on the economy, lowered the discount rate, the interest it charges banks.

Read the whole story: AP

Comments

[Ramirez]

11:15 AM on 08/29/2007

Wed August 29 11:15am EST

Dow up over 100.

[BuyRubles]

10:03 AM on 08/29/2007

la

[mrcontinental]

03:25 PM on 08/28/2007

The news is getting out and people are finally getting it. And no it's not because of the pessimist either. It's because they finally sat down and to a good long look and realized that they have no real savings and that if they take the risk and leave those stocks out there and everything goes bellyup (and it will happen eventually) they will have nothing but debt and bankruptcy to show for it. The market is nothing but a casino and the house always wins so better to pullout and liquidate and get rid of that debt. There are many vehicles were you can park your money and make a decent profit. But nothing from nothing equals nothing and that's what you are risking.

Did I mention I purchased some more gold bullion yesterday.

Pick your poison but staying in the current market is a huge gamble for any baby boomers looking at retirement in the near future.

[EinChicago]

03:14 PM on 08/28/2007

It's a really wierd market situation because it's being fed largely by itself.

"Stocks on Wall Street fell, prompted in part by a downgrade of Citigroup, Lehman Bros. Holdings and Bear Stearns Cos. (BSC:The Bear Stearns Companies Inc by Merrill Lynch on concerns about their exposure to the debt market."


So 3 banks lost value because a rival bank downgraded its opinion of them. It's a wierd dynamic in which playing dirty and spreading rumors about your rivals is having an enormous irrational effect. So there's a perverse incentive to drive bad news up and rivals down. It's a wired, wierd "gossip crash."

[Ammobob]

02:51 PM on 08/28/2007

Ka-CHING!

Here's a link to peruse:

http://www.heritage.org/Research/Welfare/bg2064.cfm

For those brave of heart only.

[aaronburr]

01:41 PM on 08/28/2007

All this attention to the economy is SO touching - particularly after Huffpo completely ignored it during the steady expansion of the last twenty six consecutive quarters. Nothing like a routine market adjustment to bring out the doom and gloomers - the same ones who have predicted 10 of the last 3 recessions!

[BenBernanke]

01:39 PM on 08/28/2007

CAPITALISM ONLY APPLIES AS LONG AS THE LITTLE GUY IS A SUCKER FOR THE THE FEW FAT PIGS ON TOP OF THE PYRAMID...

WHEN THE PYRAMID CRUMBLES YOU TAKE THE FED'S MONEY (AMERICA'S MONEY) TO BAIL OUT THOSE WHO BROUGHT ABOUT THIS DISASTER... I SUPPOSE THAT IS CALLED DEMOCRACY...

HERE IT IS... THE "FREE MARKET", DEMOCRACY, CAPITALISM, NOTHING BUT MERE ILLUSIONS...

WHEN WILL YOU FOOLS AWAKEN AND REVOLT?

This is the year you will witness the complete ruin of the American economy.

I know, you're gonna say impossible... but please note and get back to me to recheck these predictions... we'll see see who was the crazy one...

DOW... lose more than 10,000 points before Xmas..

Dollar... $5 to a €uro before Xmas... (dollar is actually going up right now but only because foreign central banks are supporting it, buying a lot of it, because of previously agreed upon plunge protection agreements)

you must understand... the markets are completely rigged (hedge funds, plunge protection teamsm etc...) and have absolutely no correlation to reality...

Be liquid, only in €uros (or even better Rubles or Yuan).

and hurry... a run on the banks is next... get your money out while you can...

http://globalresearch.ca/index.php?context=va&aid=6534

want some background reading? (form Bank of Int'l Settlements)

http://globalresearch.ca/index.php?context=va&aid=6209

MUST READ EXCELLENT ECON 101 review:

http://onlinejournal.com/artman/publish/article_2304.shtml

http://onlinejournal.com/artman/publish/article_2310.shtml

http://onlinejournal.com/artman/publish/article_2316.shtml

before too long everybody's credit will be shot to hell... repay nothing, go max out the cards on cash advance and convert in any currency out of the US Dollar.

"Capitalism is the astounding belief that the most wickedest of men will do the most wickedest of things for the greatest good of everyone." --John Maynard Keynes

[NewRiver]

01:51 PM on 08/28/2007

Look tinfoilcap dolt, all repeating your rants does is get you flagged. Once is enough for your nutter posts.

[blooddoc]

12:48 PM on 08/28/2007

It's all a game, played by people with tons of money to move around (your money, too - as in 401K) and no responsibility to anyone but stockholders. If the Fed chairman gets indigestion and bloating, the market can go up (Tums stock) or down (more gas, oil prices drop). Theories that try to explain the stock market's behavior are just that - theories. The old standard advice is still the best: don't gamble more than you can afford to lose.

[squareyellowpaper]

12:00 PM on 08/28/2007

Who would want to become president with the Bush keepin the Iraq war alive and the economy where it is?

Really! This country is going to take eight years of American sacrifice and higher taxes to get back on its feet again.

Then, another Republican will mess things up again.

[drkazmd65]

01:11 PM on 08/28/2007

squareyellow,...

You are an optimist,... it is going to take a lot longer than 8 years of anybody's administration to shovel out the steaming load of crap that will be Bush's legacy for the economy/debt/infrastructure.

But,.. my guess is you are correct that another spend and cut taxes Republican will screw the pooch (again) when things do get back on track.

[NewRiver]

01:14 PM on 08/28/2007

Higher taxes will be a bigger hit on the economy than anything else. Why doesn't anyone ever look at the other side of the income statement? Sometimes the better solution is to cut your expenditures.

[drkazmd65]

03:25 PM on 08/28/2007

I can't argue NewRiver,...

Problem is, Bush and the Republican Congress/Senate prior to the '06 elections dropped income (taxes) and didn't even attempt to reign in spending & earmarks.

Isn't looking too much better to this stage with the Democrats more-or-less running Congress now. They still don't look like they want to cut expendatures in any way that will 'hurt' them with the home voters. If they don't, then they need to increase revenues,.... but new taxes are always 'bad',...

Catch-22,... Problem is, their lack of ability (both partys) to make difficult decisions has us locked into the continuing spiral.

[Trollstakeyourmeds]

12:00 PM on 08/28/2007

Where's Cankles? I just wanted to check and see how much money he's made lately on the market. Usually he's bragging right and left about it. Been quiet for a while though.

[ScorchedEarth]

11:24 AM on 08/28/2007

when the market is down, stop crying and start buying.

[squareyellowpaper]

12:31 PM on 08/28/2007

This is not a good time to buy.

Wait until it hits rock bottom. That's when you buy.

Those that bought last week are crying this week because things have gotten worse.

[ScorchedEarth]

01:58 PM on 08/28/2007

please let us all know when we've hit rock bottom, oh sage financial wizard. Until then, I suggest dollar cost averaging regardless the positive or negative trend lines.

[emerywood]

11:22 AM on 08/28/2007

This subprime debacle looks more and more like a viscious cycle and this is only the beginning.
I don't think we have seen the full scale of devastation, at least not until all the defaults and foreclosures are in. This would be an acid test for the efficacy of rate reduction which has not failed in the past. I hope it will also work this time.

[squareyellowpaper]

12:30 PM on 08/28/2007

Agreed.

[sonofsamphm1c]

10:51 AM on 08/28/2007

I think people who are banking on a rate cut, like Cramer, are going to be in for a rude surprise.

The Fed will not cut rates until they think it will directly benefit Republican candidates, which a rate cut will not do this time.

[squareyellowpaper]

12:29 PM on 08/28/2007

Cramer is nuts. And his rantings just feed his ego....like Tucker Carlson...and Chris Matthews.

[NewRiver]

01:34 PM on 08/28/2007

RE: The Fed will not cut rates until they think it will directly benefit Republican candidates, which a rate cut will not do this time.

And the basis for that allegation is...??? How did the Fed's easing of monetary policy beginning in 1995 help Bob Dole? How did the Fed's restricting of monetary policy in 1999 help George Bush?

Sorry sonofsamphm1c...your post is uneducated at best, idiotic and tinfoil cap wearing conspiracy worthy at worst. It is, however a lovely rant, bordering on querulous stupidity.

[Fuji]

10:48 AM on 08/28/2007

Squawk! The sky is falling! The sky is falling!

[NewRiver]

11:08 AM on 08/28/2007

Yea, it's never "Top News and Opinion" when the market goes up, just down.

[squareyellowpaper]

12:28 PM on 08/28/2007

Well, kids, let's see if the FedRes changes its mind....no help until September.....

No one WANTS to see a big recession! It is just that Bush has ruined the economy with the growing federal deficit.....all because of the war.

You can't continue to take billions and billions out of the economy and hand it to war profiteers and expect nothing to happen.

Hello!!!!!!!

[nomoredead]

10:34 AM on 08/28/2007

Where is all the comments from the "Cheerleaders" about the market.?

[wijg]

11:53 AM on 08/28/2007

The conservative "cheerleaders" never believed us about the economy either. Everything we said would happen happened, or is in the process of happening.

[squareyellowpaper]

11:58 AM on 08/28/2007

Yes, they have been talking it up for weeks.

Well, we all suggested caution.

We haven't seen the end of this and we won't until January, 2009.

[NewRiver]

01:46 PM on 08/28/2007

Yea, you're really stepping out on a limb, calling for a correction after a 5 year bull run. I'm sure the Nobel Economics committee is requesting your contact information from HuffPo right now, so they can nominate you for that brilliant insight.

Look at any chart (Yahoo Finance is a good free source for those who will whine about not knowing how to find one) and you'll see that markets move in both directions, trends occur in both directions.

The main difference between the "cheerleaders" and the "pessimists" is that the "cheerleaders" don't think the sky is falling every time the market goes down. In other words, they understand market retracements and don't feel the need to reach for your Prozac when that happens. Nobody like retracements, but it's important that individuals understand that they occur. And with that knowledge and understanding, you can then prepare for them, if and when they occur.

[nomoredead]

12:43 AM on 08/29/2007

"Where ARE.................sorry.........