NEW YORK (AP) — Stocks fell sharply Friday after a series of depressing economic and earnings reports and high oil prices stoked concerns about the health of economy. The major stock indexes fell more than 2 percent, with the Dow Jones industrials at times giving up more than 300 points.
Investors were unnerved by disappointing quarterly results from American International Group Inc. and Dell Inc. And an index of regional business activity that Wall Street regards as a good indicator of a broader report set to arrive next week registered its weakest reading in more than six years.
Adding to Wall Street’s list of worries, oil prices continued to stir concern about inflation after topping $103 per barrel for the first time, in electronic trading overnight.
Yeah, oil at $103 a barrel bums me out too. The only people probably unconcerned about it are our good friends at Big Oil, and Mr. “I don’t keep track of the price of gasoline” Bush.
An now just walking away from a mortgage may become a way of life. Renting with a little extra expenditure.
The Dow closed down 315.79 today. Weeeeeeeeeee!
This should not surprise anyone, really. The ultra-secure corporations are the last to feel the hurt. Average folks who make less than 100K/yr have been feeling it for several years. Now they can’t borrow and spend anymore. And no one is willing to lend anymore since they’re not sure if anyone is solvent and able to repay a loan (even their corporate financial peers.)
If you watch the financial news networks, they’re desperately trying to put a Republican smiley-face on all of it, as usual. But that won’t work much longer.
The sequence:
President Bush said Thursday that the country is not headed into a recession.
Next day:
* Economic Woes Sink Stocks; Dow Down 300
* Profit-Taking Pulls Oil Back From $103
* Consumer Spending Stalls
* Dollar Falls Again, Euro Zone Divided
Wow. When the Decider speaks, Wall Street listens, right? He might as well just go mumble in front of the TV set.
Jingle Mail: Vacant Homes in U.S. Climb to Most Since 1970s With Ghost Towns
Bank Failures Next: ‘Cancer in the Market’
Credit-market losses will climb to at least $600 billion from about $160 billion written down so far as investments funded with borrowed money are unwound, UBS credit strategist Geraud Charpin wrote in a note to clients.
followed by
Hyper-Inflation: Stagnant Economy, Lost Jobs, Surging Inflation
Gold closed at $973.80
Good thing I bought a little gold at $465 an ounce two years ago.
it’s on the way to the angels. $1650 is conservative given the problem with South African mines.
Then there’s Mr. “$4.00 a gallon gas??? where’d you hear that? I hadn’t heard thaaaat?