The market looks like it is crashing

[whosinpower]

Does not look pretty.

Tea partiers will take that as a hint that the market did not approve of raising the debt ceiling...

I see it as a continuation of erosion of confidence...doubled down by the tea party's rhetoric, cutting 2(?) trillion out of the economy via cutting spending, horrible jobs report and horrible consumer spending which is also pulling back.

The damage has already been done in regards to full faith of the US to honour its debt obligations.

Obviously - there is a war going on in the Eurozone too. Not a guns and bullets war - but a war just the same.

[Coyote_Bandit]

1. We have this crazy idea that

the major markets - the Dow, the S&P - reflect the US economy.

Ain't so. Those markets are a measure of multi-national companies that utilize resources, labor and markets around the world.

Somebody really needs to create an American stock index.

[gateley]

3. Good point, although this still indicates the world's economies

aren't in good shape.

[BadgerKid]

10. I thought Russel 2k, or whatever,

was supposed to be something like an American stock index.

What TPTB don't tell you is that sector investing can trump indicies like the Dow and S&P500.

[Coyote_Bandit]

14. Look at the stocks included in the Russell 2k

Do they primarily utilize U.S. resources, labor and markets?

I think you will find a statistically significant number of multi-nationals included in that index.

[gateley]

2. Not to impugn your expertise, but is this your observation,

or are some "heads" predicting this?

Thanks.

PS - Totally agree that so much damage has already been done.

[whosinpower]

4. This is just my observation

You are free to go and check it out for yourself.

They are calling it a global sell off.

[Skip_In_Boulder]

7. Investors do seem to be worried

about the global economy at this point.

[gateley]

8. Oh, no -- I'm not disputing you. Just wondering if you had

seen/heard something that indicates there's concern there may be a crash. The financial markets are over my head and I don't understand much, but a "crash" is pretty understandable.

"Global sell off" is pretty bone-chilling, too!

[Skip_In_Boulder]

5. I wouldn't say it is crashing

but it has been on a serious downward trend for the last 2 weeks. But most of it looks like a response to unemployment data and projected job layoffs.

[Dad Infinitum]

6. Welcome to the new normal

We all better get used to it.

[dtexdem]

9. Now, now -- let's make necessary distinctions! Is the market crashing ...

or burning?

[n2doc]

11. Europe is experiencing several crises

So that, plus the fact that the US is in 'austerity' mode (meaning a new recession) means the investor class is going to get out and wait for the dust to settle.

[whosinpower]

12. Exactly

Austerity = recession.

Cutting spending = austerity.

Who held government hostage to cut spending before allowing the debt ceiling to increase - GOP.

GOP are recession creators - NOT job creaters.

[n2doc]

15. Yes. But all people will hear on the news is "Obama's failed policies"

And since Obama didn't make a huge stink to fight for a bigger stimulus, or fewer cuts, and kept talking about bipartisanship and needing to negotiate, he can't complain that he didn't get what he wanted.

[girl gone mad]

20. Yes, I think Europe was the driver this time.

They're quickly running out of road to kick the can down.

As we've discussed on this forum a few times, the Euro is unlikely to survive.

[dgibby]

13. DOW is -320 now.

now -345.

-371.

[golfguru]

18. Please do not jump out of your basement window!

It's just paper losses...here today gone tomorrow.

[dgibby]

21. Not to worry. I don't have enough to have money in the market!

:hi:

[dmallind]

16. Yep - crashing to 2.5X times the level many DU doomers confidently predicted a while back.

This too shall pass.

[golfguru]

17. As it should crash because we are headed for bankruptcy n/t

[elleng]

19. 'Weak Global Economy,'

but slight up-tick since 2:30-ish.

http://www.nytimes.com/2011/08/05/business/markets.html?hp

[whosinpower]

22. I just checked a couple of minutes ago....ugly

down 512 points.

[elleng]

23. Yes, VERY ugly.

[Celebration]

24. the silver lining

Globalization is taking a hit. Think Euro......................

[elleng]

25. Yes, its global, but don't see that as silver lining.

http://www.nytimes.com/2011/08/05/business/markets.html