Stock markets plummeting!

[PragMantisT]

Dow under 10,000
Nasdaq under 1900

Clearing out the suckers, or beginning of the next great depression?

[nadinbrzezinski]

1. I've had the feeling that the latter is coming

so it may be it

[JuniorPlankton]

2. Don't get overexcited

Just "normal" stock market volatility

[rkc3]

4. If normal

means down 300 points in 2 days, then we're right on track.

Also, it's not just the stock markets that have been down recently. The safe haven bond markets have gotten pummeled as well.

It seems there must be more than fear over rising interst rates at work.

[On the Road]

3. Not Exactly a Plummet -- Only 1.5%

but probably the beginning of a decline that will last at least through the election. To me, it looks like the indicators are all set up like bowling pins.

Some links from earlier:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x8575

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=114&topic_id=8586&mesg_id=8586

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x543794

[nadinbrzezinski]

5. It reminds me of oh now June of 1929

but when it does slide it will be over several days, even up to
a week... look for the automatics to come into play when it does

[PROGRESSIVE1]

6. With Inflation, Rising Interest Rates, and Sky High Oil costs......

the Economy is going to slow down and that will just add onto Bush's troubles.

If Kerry plays his card well, he will become the Second Democratic Senator/Former Naval Captain from Massachussetts!

:kick:

:kick:

[tritsofme]

7. Rising interest rates will probably mitigate the inflation

that has reappeared, and slow down growth, but I think over the next few weeks oil is coming way down, crude fell a whole dollar today because the Saudis signalled they are willing to bail * out.

[On the Road]

8. Yup, the Only Good Sign

is the second month of good job creation. Normally there would be a broad resurgence at this point in the business cycle, but this time it has to fight all these negative factors.

Third-world countries have to fight these multiple battles all the time. The US is usually immune.

[Vitruvius]

9. For one thing, foreigners are pulling their money out of the US stock mkt

-- we're ruled by totalitarian incompetents who, naturally, are wrecking our economy -- so foreign investors are bailing out of US investments.

[On the Road]

10. Any Sources, Vitruvius?

I had heard that one factor propping the stock market up during the last year was the decline of the dollar, which has made American stocks cheaper for foreign investors.

A rise in the dollar would presumably have the opposite effect. Or a drop in confidence in the US economy. A lot of moving parts.

[uncertainty1999]

11. Is this a forecast of a "President Kerry" in our future?

I know it's early, but the markets hate uncertainty. Perhaps the powers that be no longer think than Bush has it in the bag. I recall that in the weeks leading up to the 2002 midterms the market soared on certainty that the repubs were going to recapture the senate.

[uncertainty1999]

12. Should I be happy or sad?

Happy, because I've been waiting almost 2 years for a crash so the market could get over it while I'm still young and don't have as much invested in the market as I would later on, or should I feel sad because I've capitulated bit by bit over the last few months (even just 2 weeks ago moving some money into stock funds!). I'm patient, but not infinitely so...