STOCK WATCH: Hong Kong down more than 6%, Australia (5%), S. Korea (Almost 8%...tripped circuit!)

[Modern_Matthew]

It's all here:

http://twitter.com/#!/breakingnews

[pa28]

1. Dow futures down 274.

Unless we get a fresh infusion of bernie bucks from the FOMC tomorrow things are going to get "interesting".

[FirstLight]

2. seriously?

so what, we print more monopoly money and everything is hunky dory? i call bullshit.

[originalpckelly]

3. I am mixed on this.

On the one hand, the people who made irresponsible investments need to get slapped down hard.

On the other, you could create a glut so big that we can't climb out and innocent people will be hurt.

If you think these stocks are overpriced and that this money needs to die, the evaporation of wealth is OK.
If you think the latter, that there will be a huge glut, then you have to think that we should pump in more money.

[FirstLight]

5. I must be a fucking fatalist then...

because i have nothing to lose, and therefore i could care less if it went kablooey...even though i know it would make my life that much more unbearable in reality. (If the grocery store is out of cash then they can't stock shelves, etc... so ya, that could get sticky.)

but i also know that the 'system' is just a huge shell game and needs to come back to a baseline of some sort to even the field - have no idea how that happens without huge difficulties and disaster :(

[pa28]

4. I think you might have misunderstood my intention.

The fed has plenty of tools to pump money into the economy or monetize whatever bad debt they see fit. Last year at this time the market was in a similarly bad situation and Mr. Bernanke decided to pump. He might do so again and I still believe it will provide temporary relief.

My personal opinion is that financial markets must adjust on their on their own and at some point the markets will be forced to reject that approach. There will be a day of reckoning but it happens to be my personal belief that fed will delay that for as long as possible using whatever loose interpretation of their charter is convenient at the moment.

[Renew Deal]

8. Wheeeee!

http://images-2.redbubble.net/img/art/size:large/view:main/37275-11-baby-panda.jpg

[nadinbrzezinski]

6. Ok we may be seeing a crash...

I wish our boys in DC understood this... and I am not being party specific right now.

[XemaSab]

7. Seoul was down -9.06 for a minute there

It bounced slightly, but it's still in the tank. :o

[Oasis_]

9. Corporate earnings are strong

and job growth last month was better than expected. I really hope the Fed resists another round of QE. Let oil prices continue to fall--which is a potent stimulus in its own right. Significantly reduced commodities pricing is absolutely essential in getting the economy moving again--and once it demonstrates the momentum is sustainable, that 2.3 Trillion Corporate America is sitting on should start to move off of the sidelines---which becomes another force to further stimulate the economy.

The chain of positive events (which by the way, would nearly ensure an Obama victory in '12) could bring down unemployment much sooner than later. The aforementioned 2.3 Trillion is waiting for consumer demand to free it.

Oasis

[originalpckelly]

10. The problem is that I see them burning through that money on the sidelines...

I don't see them actually hiring more people, they might even scale back further, if at all possible.

You need to feel optimistic about the future to start hiring again, that's the problem here I don't think people are going to be optimistic in this environment. This is quickly becoming a very scary situation.

[Oasis_]

11. I have to respectfully disagree

The markets are "liquidating the rot" and putting the farm in US treasuries--which makes our borrowing costs that much more favorable I don't agree with the assessment, at least with the data I've viewed, that this is an artificial prop from the foreign national banks. It's more than likely a rush for cover.

This isn't a meltdown--simply a very violent correction. The oil speculators are taking a bath, and will think twice the next time before artificially creating another bubble.

People will see their 401K gains (in the interim) wiped out, but they will build back, and this type of correction creates a lot of value and opportunity for shrewd institutional investors--the very people in charge of managing our various retirement savings plans.

Oasis

[Fuddnik]

12. The economy sucks.

It's not the downgrade. It's the job numbers.

Look behind the job figures. The info is available. First, you need over 150,000 jobs added just to keep up with population growth. Then again, over 450,000 people were considered as having "left the work force" last month. Plus the number of part-time jobs went up, but the people searching for full-time work increased.

No good paying jobs, no economy.

There is no consumer demand, because nobody has the money to buy it anymore. This leg of the recession is starting on the demand side. that's why all the money is sitting on the supply side.

Obama is a lame duck if he don't figure that out.

[Oasis_]

13. He can't offer another stimulus

as the House simply wouldn't even begin to argue its merits. It's DOA. But the "hidden" stimulus is in the falling commodity prices. That's how we're going to turn this thing around. It may get a little worse before it gets better, but right now it's all we have. QE3 would be the death knell. Allow the markets to self-correct and align us on a course to expand. Volcker created the recession of '82 to combat inflation--we can create the GENUINE recovery of '11/12 on the back of falling commodities.

Oasis