U.S. stocks fall hard on debt debate

TextNEW YORK (MarketWatch) — U.S. stocks were hammered Wednesday with no end in view to political sparring over raising the debt limit and economic data that only heightened uncertainty about the recovery. “The debate in Washington is creating more and more uncertainty, and the longer it drags on is only going to enhance market anxieties and lead to more volatility,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott. Read more on lawmakers’ latest plans to cut the deficit. Extending losses into a fourth session, the Dow Jones Industrial Average DJIA -1.59% fell 198.75 points, or 1.6%, to 12,302.55. The rout is the worst for the blue-chip index since June 1. The Standard & Poor’s 500 Index SPX -2.03% shed 27.05 points, or 2%, to 1,304.89, with technology and industrials the heaviest weights of the index’s 10 industry groups. All groups fell, “indicating investors are just hitting the sell button without distinguishing,” said Luschini. The Nasdaq Composite Index COMP -2.65% fell 75.17 points, or 2.7%, to 2,764.79. The selloff extended beyond stocks, to almost every major asset class except the U.S. dollar.

www.marketwatch.com...


Oh, I do believe that this is quite significant. The DOW down by an increasing amount each day this week, not it's in the hundreds. NASDAQ is also seeing a large fall. No deal is in sight, and I don't expect to see one before the week's end. I'm predicting that Friday is going to be a frightening day on Wall Street.

Keep an eye out.

dow jones falling 200 points doesnt seem like that much, the volatility of the stock market has become ridiculous, this just seems like a normal bad day for stocks. nothing more

8 years ago if the stock market crashed 200 points people would be running in the streets thinking its the end of the world. Now we have 200 point dips a few time a month and we dont bat an eye.

Crazy

reply to post by camaro68ss


Dont know why we are talking about the stock market, it goes up and down every day.

It's the BOND market we should be talking about.

Guess wall street needs a new shot of hopium

Not only that, but the threat of a default, America on its way to hyperinflation, the Eurozone could collapse, the UK, Fukushima, Libya, Egypt, Isreal, China.

IT MOST CERTAINLY IS LOOKING THAT WAY.

One can only hope that it is true. I still believe it is all theater and that our children's chains are already forged.

reply to post by sonofliberty1776
"children's chains" ---- are you f**kin serious? yo dude, that sounds like a line right out of the Koch brothers "How to be a Good Lil T~Partier" handbook. get real..........

Maybe there's a "flash crash" button somewhere. Maybe someone is going to push it. Maybe.

reply to post by yourmamaknows


Yes, they use that button daily, although it is thought to be due to programmed software.
On Zerohedge they report those flashcrashes daily, happening in seconds.

Originally posted by LooksLikeWeMadeIt
reply to post by sonofliberty1776
"children's chains" ---- are you f**kin serious? yo dude, that sounds like a line right out of the Koch brothers "How to be a Good Lil T~Partier" handbook. get real..........

edit on 27-7-2011 by LooksLikeWeMadeIt because: attempt 2 clean up me lingo

You do realize that the country is broke, right? We "need" to raise the debt ceiling because we have already maxed out our credit cards. Now they want to borrow more money, because we do not have the cash to do all of the things dear leader wishes to do. That money will be borrowed. Who will pay it back? Ask yourself that, take off the blinders for a minute, and ask yourself when/how will that money be paid back????????

Just my uneducated opinion but I see any stock market dips this week as the banksters helping their buddy Obama. First scare the seniors over SS, next scare the middle class people with IRA's and 401k's.

It;s all about manipulating the public into pressuring Congress to agree to a plan that Mr O wants. And ANYTHING that Mr O wants benefits the bankers.

Same thing happened just prior to the the massive bailouts.

The sky is falling. The sky is falling. Then, they get what they want.

It looks as though S&P is most certainly going to down grade the US’s credit rating regardless of the outcome of the debt crises debates. Remember most investment firms have restrictions on how much exposure they can have to bonds with less than a AAA rating. Most will be forced to sell off assets in the event of a down grade because of company policy whether they want to or not. My guess is some are getting out ahead of the down grade that looks to be coming very soon.

Originally posted by robyn
Just my uneducated opinion but I see any stock market dips this week as the banksters helping their buddy Obama. First scare the seniors over SS, next scare the middle class people with IRA's and 401k's.

It;s all about manipulating the public into pressuring Congress to agree to a plan that Mr O wants. And ANYTHING that Mr O wants benefits the bankers.

Same thing happened just prior to the the massive bailouts.

The sky is falling. The sky is falling. Then, they get what they want.

right on the money (no pun) scare tactics work well and they got in nailed. as soon as they raise the debt limit (and they will) its back to normal.

star from me

They certainly won't get what they want if they pass a bill that fails to make substantial cuts and rating agencies scramble to downgrade the US credit rating. Rating agencies have already flagged this and I have cited it a few times on this forum so wont bother again, its common knowledge - simply passing any old cut will not suffice.

The game of chicken is over, deeps budget cuts and austerity is the only acceptable measure, and that in a deteriorating, or "softening" economy is courting a major crisis, regardless of the debt ceiling being raised.

Yawn.

This is getting real old, real fast. I can't wait for this crap to be over. Then we can worry about the next problem

Let it go. It has never been done before....... To the hell with it. I am broke all the time anyway...Even with a new job.......... I would rather worry about, if three fish will feed us tonight, than worry about Uncle Sam, Obama, whoever is in charge of the Fed Reserve, DHS, Local Police "check points", oh hell I can go on forever. But I can't I have to go and slave tomorrow......Because I do not want fish every night....I like to take a shower, and so on..

Let's get the ball rolling already.......

Originally posted by LooksLikeWeMadeIt
reply to post by sonofliberty1776
"children's chains" ---- are you f**kin serious? yo dude, that sounds like a line right out of the Koch brothers "How to be a Good Lil T~Partier" handbook. get real..........

edit on 27-7-2011 by LooksLikeWeMadeIt because: attempt 2 clean up me lingo

He is correct. Your children will be enslaved to 3rd worldliness.

MARKETS STILL LOOKING HEAVY!

the selloff should continue during todays trading session. huge correction underway. bonds still not moving.

a 198 point fall is hardly a sneeze anymore...

just look at the price of stocks like Apple, Google, Amazon, Priceline.com
they are up there in the multiple hundred$ each... so a 200 point drop is just a $3.00 drop in those same companies stock price.

what is surprizing is that gold & PMs have not busted up higher in reaction to the possible downgrading of the US Treasury paper ...

its not really the Debt Ceiling issue at play here...

It's the fear that Treasuries will be scorned by the world community and that the USTreasury will be forced to pay a higher interest rate on their Bonds/Notes, to get the buyers interested.... which will then cause the dreaded hyperinflation that's just over our present horizon..