STOCKS COME TUMBLING DOWN DESPITE OBAMA’S STIMULUS…

Posted on February 17, 2009. Filed under: News And Politics... |

 
Was the $787 billion stimulus bill worth it?  Not when you look at how the DOW has been plunging DOWn, even after the stroke of Obama’s mighty pen.  His followers are still thinking he made the right move, but actually he made the left move, which happened to be wrong.  There is no way the economy will bounce back when you have all those foreclosed homes and stimulus money going to their owners.  If they couldn’t afford their homes before, there’s no way they’re going to be able to afford them now, even with the money they’ll get.  That money’s not going to last forever, and let’s face it, when people have some extra money what do most of
them do with it?  They squander it…all you have to do is look at what the three CEOs did with their handout from the government.  They spent it on spa retreats, luxury jets, etc.  They didn’t learn their lesson because they weren’t allowed to fall.  This is a recording…
 
If they really want to stimulate the economy, lower the mortgage interest rates to 4% so decent hardworking people can refinance and have a few extra dollars in their pockets, people who are living within their means and deserve it.  The Republicans want to lower the mortgage interest rate to 4%, as I’ve said in a previous post, but the Democrats are dead set against it.  They don’t want to help us, only people who can’t afford the houses they bought.  Like most of you, my husband and I are living as frugally as we can and that would be a welcome boost and a reward for living within our means.  With a little extra money, we can get a little ahead.  Obviously, Wall Street doesn’t see any benefit to Obama’s stimulus bill feeding these foreclosures as we’ve been seeing in the numbers lately.  It’s only delaying the inevitable…Down the road, these homes will be foreclosed on anyway because these morons bought too much house with too little money to back it up.  When is the government going to punish bad behavior and reward good behavior?  Making people responsible for their actions is the only way people learn…
 
QueenBee
 
 
Stocks Tumble as Recession Appears to Worsen

Washington Post Staff Writers
Tuesday, February 17, 2009; 5:07 PM

Heightened concerns about a deep and prolonged global recession lead to a sharp decline in stock markets around the world today, with the Dow Jones industrial average approaching lows reached during the tech bubble crash seven years ago.

The picture was ugly, with investors everywhere — from Hong Kong to San Paulo to London participating in the sell-off. Instead, the investors fled to safe-haven investments such as U.S. Treasuries and gold, sending those prices sharply higher.

With all but one of its stocks in the red, the Dow closed down 297.81 points, or 3.8 percent, to 7,552.60, within 300 points of the market bottom on Oct. 9, 2002. The Standard & Poor’s 500-stock index, a broader market measure, lost 4.6 percent to close at 789.17. The tech-heavy Nasdaq composite index fell 4.2 percent, to 1,470.66.

The plunge came despite President Obama signing the $787 billion economic stimulus package, highlighting investor concerns about just how effective the package will prove. Investors are also worried about the Treasury Department’s plans to clean up billions of dollars in toxic troubled mortgage assets from the balance sheets of major banks. Financial stocks lead the market lower Tuesday, with Bank of America, Citigroup and J.P. Morgan Chase each declining by 12 percent.

Also hurting the market were auto stocks, with executives at General Motors and Chrysler facing deadlines to turn in restructuring plans to the federal government after receiving billions in bailout funds. GM stock was down 12.8 percent.

"We are back to testing the lows," said Andrew Brooks, head of stock trading at T.Rowe Price. "Sentiment couldn’t be more negative. It is pretty dismal out there today."

After a three-day weekend, the U.S. market opened sharply lower this morning as it digested dire news coming out of economies that were once thought to help ease the world economy out of its downward spiral.

On Monday, Japan, the world’s second largest economy after the United States, said its economy shrank at an annual rate of 12.7 percent — the biggest contraction since the oil crisis of 1974. The data comes after a Friday report out of Berlin that showed the German economy, Europe’s largest, shrinking by 2.1 percent, the largest since the country’s reunification in 1990.

Some economists had argued that countries such as Japan and Germany, which are not weighed down by debt, were better equipped to weather the downturn. But their economies rely heavily on exports, which has slowed down markedly as demand waned from hit heavily by the financial crisis.

In Germany, the DAX index fell 3.4 percent, or 150 points. The Nikkei fell 1.4 percent, or 105 points, to close at 7646. London’s benchmark FTSE index fell 2.4 percent, or 101 points.

Pulling markets lower in Europe was a report by Moody’s Investors Service, which warned banks with exposure to Eastern Europe mighe be downgraded. Deteriorating economic conditions in Eastern Europe, Moody’s said, would damage subsidiaries of major Western banks.Meanwhile, emerging markets, the world’s fastest growing economies whose demand for goods and services is considered key to a global recovery, showed signs of intensifying weakness. A state owned news agency in Russia Tuesday said lower commodity prices and the financial crisis is expected to drag the Russian economy by more than 2 percent this year. In Brazil, where commodity exports have fallen sharply, retail sales fell for the third straight month in December, marking the longest period of declines in six years, a report released Tuesday showed.

Also weighing down U.S. markets Tuesday was a report by the Federal Reserve Bank of New York that its general business conditions index in that region fell to a new low of -34.7.

 

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