Poof! Market drops 515 points as Debt deal allows worried investors to buy safer U.S. Treasury Bills

Poof! There goes any progress stocks made in 2011. So what are investors buying?  Treasury Bills!  Looks like investors where just waiting on the sidelines hoping for a Debt Deal in the United States.  So the Democrats where wrong again.  Democrats blamed the GOP that markets were dropping because they were slow on making a debt deal.

Stocks plunged Thursday, with the Dow tumbling 515 points to hit its lowest level since December, as global economic fears gripped the market.

U.S. markets were already sharply lower on widespread worries, including the weak job market. But the selling gained momentum as Japanese and European policymakers stepped in with dramatic measures to shore up their financial markets.

There’s “total fear” in the market, said Bob Doll, chief equity strategist at the world’s largest money manager, BlackRock.

source   CNNMoney.

via Poof! Market drops 500 | Iron Mill News Service.

Treasuries rally as fear saturates market

Treasury prices rose to their highest level since November as fears about a slowing U.S. economy sent investors rushing to the safety of government-backed debt.

The yield on the 10-year note was at 2.45%, after trading at over 3% less than two weeks ago. The yield on the 2-year note sank to 0.27%, a record low.

via Treasuries rally as fear saturates market – Aug. 4, 2011.

“Total fear”: Dow drops 512 points

Remember the last time America had a nice quiet year of economic stability and relative political tranquility? If you do, let me know. Maybe it’ll jog my memory.

“Total fear”:

U.S. markets were already sharply lower on widespread worries, including the weak job market. But the selling gained momentum as Japanese and European policymakers stepped in with dramatic measures to shore up their financial markets.

There’s “total fear” in the market, said Bob Doll, chief equity strategist at the world’s largest money manager, BlackRock.

All three major indexes tumbled more than 4% Thursday and erased all their gains for the year. The indexes have also pushed into ‘correction’ territory – defined as a 10% drop from their highs earlier this year. Over the past 10 days alone, the Dow, S&P 500 and Nasdaq have dropped about 8%.

Debt-ceiling discontents claim the sell-off this week is a backlash to the feebleness of the deal in addressing America’s long-term debt problem. I don’t buy it. The market’s known for weeks that the deal wasn’t going to touch entitlements or lock in major spending cuts. Once Obama demanded an extra $400 billion in new revenue and Boehner walked away, the grand bargain was dead. If, as Erin Burnett speculated, shares were pricing in an elevated risk of a credit downgrade, that should have happened Monday or last week. I think J Pod’s right that what we’re seeing here is markets pricing in something else — namely, the growing risk of a double dip:

via “Total fear”: Dow drops 512 points « Hot Air.

About the Author

Politisite delivers the latest Breaking Political News, Debate Coverage, Election Results, Commentary and Analysis. We provide in-depth news with special reports and interactive political coverage. Politisite was a pioneer in internet political news gathering and dissemination. Politisite came live in early 1998 and become the first internet only news source to cover local, state, and national political campaigns, debates and elections. Before there were the terms Blog, Blogger, New Media, or Crowd-sourcing, Politisite was developing what has become the standard in political news coverage, long before most political sites were even conceived. The Name ‘Politisite” simply means Political Website.

Author Archive Page

1 Comment

Post a Comment