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Subscribe to RSSThe Fed does the twist. Stocks tumble.
Stock markets around the world slumped Thursday after the Federal Reserve offered a gloomy assessment of the economy which raised anxiety that a global recession was coming.
Just before midday, the Dow Jones industrial average was down almost 350 points, or more than 3 percent. The broader S&P 500 and the Nasdaq also were down more than 2 percent.
The rout began on Wall Street Wednesday after the Fed announced it would be attempting to boost the economy by migrating its Treasury holdings to longer-term securities from shorter-term debt, a move dubbed "Operation Twist" that was first used, to mixed results, 50 years ago.
But it was the central bank's forecast for the economy, which mentioned "significant downside risks to the economic outlook, including strains in global financial markets," that really unnerved investors.
"A lot of people were hoping for the Fed to say we are close to recession but not really in it and were expecting an aggressive action out of the Fed. The market didn't get this," James Dailey, portfolio manager of TEAM Asset Strategy Fund, told Reuters.
The sell-off extended into Asia overnight and then spread to Europe, where some major indexes dropped more than 4 percent. Adding to the angst: Data came out showing factory activity slowing in China, the world's second largest economy; and Germany said business activity expanded at its weakest pace in two years in September.
U.S. economic indicators released Thursday did not help the mood. New claims for jobless benefits dropped in the latest week, but remained above 400,000. Economists say claims need to drop below that for an extended time to have any meaningful impact on the jobs market.
A gauge of future business activity showed that the economy would grow at a snail's pace in the fall.
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The solution is really very simple, countries have to start living within revenue, stop the spending! Stop robbing the future for immediate gratification!
Cut, Cap, Balance.
Who actually owns the Federal Reserve Central Banks? The ownership of the 12 Central banks,
a very well kept secret, has been revealed:
Rothschild Bank of London
Warburg Bank of Hamburg
Rothschild Bank of Berlin
Lehman Brothers of New York
Lazard Brothers of Paris
Kuhn Loeb Bank of New York
Israel Moses Seif Banks of Italy
Goldman, Sachs of New York
Warburg Bank of Amsterdam
Chase Manhattan Bank of New York
Close the "FED", imprison or deport all "FED" board members.
HOW DID THE "FED" BECOME THE CANCEROUS PARASITE ON THE UNITED STATES OF AMERICA THAT IT IS?
After previous attempts to push the Federal Reserve Act through Congress, a group of
bankers funded and staffed Woodrow Wilson's campaign for President. He had committed to
sign this act. In 1913, a Senator, Nelson Aldrich, maternal grandfather to the Rockefellers,
pushed the Federal Reserve Act through Congress just before Christmas when much of Congress
was on vacation .
When elected, Wilson passed the FED.
Later, Wilson remorsefully replied (referring to the FED), "I have unwittingly ruined my
country"
In what I've seen when people cry, "STOP SPENDING" they mean something else entirely than what the goverment thinks when they want to stop spending. Likely to be cut first is social security and medicare, and I cannot back that idea up. This country has enough wealth in it that we should not have to be forece to go without social security or medicare.
Unfortunately, where we want them to stop spending (on the govenment themselves) that's less likely to happen any time soon.
Thus the broken system that keeps on going and going...
Perhaps it has to do with the fact that they're Americans on Wall Street protesting and our government is still blacking it out in the media. Other countries know you idiot government officials. Also some one will porbably be suing Yahoo for censoring Americans trying to send emails about the occupywallst event as well. Yeah they got busted hands in the cookie jar. On top of that at first they lied about the whole ordeal.
Good luck Government good luck trying to hold us down! Crash and burn baby crash and burn!
Hey Close the Fed: You're facts are wrong. Nobody technically "owns" the federal reserve banks.
Here's your link:
http://www.factcheck.org/2008/03/federal-reserve-bank-ownership/
Not to make any kind of statement, just a math question.
If the Market went to 8000 how much could a person make per thousand $$$ by selling the "right" stock short?
thanks
(ps) what is that "right" stock ............. oh
We're starting to look more, and more like Greece! Warren Buffet is gonna go broke lmao.
obviously, this is Bush's fault
Stocks crash because they fear they will crash... A self fulfilling prophecy? Gotta love a global economy.....
The fed knows what and how they are manipulating the next bubble. Gold reserves.
Good job, Ben Bernanke! What kind of tricks should we look forward to next week while everyone's 401's are tanking?
If we had only passed a real stimulus in Feb. 2009 instead of the failed, near trillion dollar, liberal agenda-driven, pet-project filled boondoggle of non-job producing, wasted -- did I say near trillion dollar -- non-economic policy-based, political "thank you" laden spending that was forced through by the Dems. You know...maybe if we had done that we would have a few jobs! Thanks BO...and Reid...and Pelosi!
Close the FED...Lehman Brothers...really???
Hard to believe that a Republicant would be calling in retrospect for an even larger stimulus than the one that they fought tooth and nail, and trying to blame President Obama for not sticking his neck even further out than he already did!!!
Actually, the stimulus and the various bailouts had mostly positive economic effects, because our current unemployment rate is not 15 or 20% like many Republicans would like to see it. Quite a bit of our long-neglected highway maintenance got done too. Too bad that they didn't spend enough on that bridge on I-64 over the Ohio River? I blame Mitch McConnell for that myself, along with the Republican Governor of Indiana too. If we don't start funding our rapidly deteriorating bridges and roads pretty soon, we are going to start to have to produce what we consume locally or do without, unless you are willing to pay for air-freight or order enough in advance to ship by barge!!!
Stocks crash because they fear that they are going to crash is a lot like consumer spending being tied to consumer sentiment, and when nobody has any spare money to spend, consumer sentiment isn't very good either!!!
Another page of why ______— doesn't work and never will.
A sunny thought for you- Not that it ever would do so, but at yesterday's 200+ rate of fall (not today's near 400 point drop) we only have about 53 more days of drops until all of the water is out of the bucket.
You forgot one element: revenue. Therefore, "cut, cap, TAX, and balance." We absolutely cannot cut our way out of debt, it's a mathematical impossibility. President Bush ensured that with his revenue reduction nearly 10 years ago.
Ji (G) youre absolutely correct, a down market is not necessarily a bad deal for those well informed.... traders can make millions of dollars in short selling stocks. But youre right, if the market drops to 8000, there is a lot of profit to be made in short selling the right stocks.. many stocks will drop by an even greater percentage. good thought Ji (G)!
ripcity, sorry to be the one to break reality to you, but our debt problem is NOT a revenue problem.
In real constant 2010 dollars the federal government extracted (taxed) $5610.68 per person in 1970. That grew nearly 50% to $8317.46 per person in 2007. For every $1 taken in per-person in 1970, it grew to nearly $1.50 per person in 2007...in inflation adjusted dollars. The problem is not revenue, it is that spending grew at a pace that dwarfed even that.
In real constant 2010 dollars the government spent $5693.35 per person in 1970. That grew nearly 100% to $11194.36 per person today. For every $1 per-person in 1970, it grew to nearly $2 per person today...in inflation adjusted dollars. To be clear, that doesn't mean that the government spent it on you. They just spent it somewhere.
So do you see now that the problem is not too little revenue? After all, we're paying in 50% more per person in real dollars to the government than we were just 40 years ago. However, the government is consuming twice as much per person over that same time period. It's not a revenue problem, it's an uncontrolled spending problem.
Well Ebeneezer, I take great confort in the fact that only a few people are as niave as yourself.
"Every effort has been made by the Federal Reserve Board to
conceal its power but the truth is the Federal Reserve Board has USURPED THE
GOVERNMENT OF THE UNITED STATES. IT CONTROLS EVERYTHING HERE AND IT CONTROLS
ALL OUR FOREIGN RELATIONS. IT MAKES AND BREAKS GOVERNMENTS AT WILL. No man and
no body of men is more entrenched in power than the arrogant credit monopoly
which operates the Federal Reserve Board and the Federal Reserve banks.
These evil-doers have robbed this country of more than enough money to pay the national debt.
What the Government has permitted the Federal Reserve Board to steal from the
people should now be restored to the people."
Rep. Louis McFadden
"I believe that banking institutions are more dangerous to our liberties than standing armies.
Already they have raised up a monied aristocracy that has set the government at defiance.
The issuing power (of money) should be taken away from the banks and restored to the people
to whom it properly belongs." -- Thomas Jefferson, U.S. President.
"It is well that the people of the nation do not understand our banking and monetary system,
for if they did, I believe there would be a revolution before tomorrow morning." -- Henry Ford
"The Federal Reserve banks are one of the most corrupt institutions the world has ever seen.
There is not a man within the sound of my voice who does not know that this nation is run by
the International bankers." -- Congressman Louis T. McFadden (Rep. Pa)
For those who need it spelled out for you in detail;
| | | Lehman Brothers N.Y -------------- Kuhn Loeb Co. N. Y. | | -------------------------- µ | | | | 8 | | | | Lehman Brothers - Mont. Alabama Solomon Loeb Abraham Kuhn | | __|______________________|_________ Lehman-Stern, New Orleans Jacob Schiff/Theresa Loeb Nina Loeb/Paul Warburg ------------------------- | | | | | Mortimer Schiff James Paul Warburg _____________|_______________/ | | | | | | Mayer Lehman | Emmanuel Lehman \ | | | \ Herbert Lehman Irving Lehman \ | | | \ Arthur Lehman \ Phillip Lehman John Schiff/Edith Brevoort Baker / | Present Chairman Lehman Bros / Robert Owen Lehman Kuhn Loeb - Granddaughter of / | George F. Baker | / | | / | | / Lehman Bros Kuhn Loeb (1980) | / | | / Thomas Fortune Ryan | | | | | | Federal Reserve Bank Of New York |My understanding was that Lehman closed shop in 2008.
You can NOT spend your way out of debt!!!!!!!!! This is proof this administration does not have a clue as to how to solve this problem!
And proof you don't understand that we're not part of the Eurozone!
It's pretty obvious that nobody has a clue how to 'quick fix' the economy, because there is no quick fix. Throwing money at the problem didn't work. Fiddling with the interest rates didn't work. The trillion dollar stimulus didn't make a dent. The only thing that will fix the economy is time, but time is running out before the next election, so that's why they are trying so hard to do so little.
david1 - hit the nail solidly on the head with clear concise statements. It really is that simple.
david1 - you are absolutely correct, but there are some things we CAN do - things that make a lot of sense. Here are just a few suggestions:
http://www.halfbakedlunatic.com/post/2011/05/17/Government-Debt-and-Rising-Interest-Rates-e28093-A-Dangerous-Combination.aspx
Sure you can, Randy, if the revenue created by the spending is greater than the principal plus the interest (debt service) payments on the amount borrowed. The problem is that the conservative mantra of lower and lower revenues (taxes) hamstrings the process, perpetuating a negative cash flow for the government.
Please recall that this country was in the black at the end of the Clinton administration. The cash outlay of the wars in Iraq and Afghanistan combined with the reduced cash inflow of the Bush tax cuts contributed mightily to the problem we are facing today, plain and simple. President Bush gave the United States a pay cut and then went on a spending spree. Rather than try to fix the problem by raising revenues to bring cash flow positive again, Republicans are trying to right the ship by reducing spending only. The problem is that the recession has triple whammied us by further reducing tax revenues to the point that cuts by themselves cannot bring cash flow positive.
Lunatic - I had read your article before, everyone in the US needs to see this.
Ebeneezer, your over all lack of understanding our corrupt financial system is truly amazing.
WHEN Greece falls, we will also pay. "The Federal Reserve" is OWNED by the same European banks who hold the purse strings to Greece, Italy, Portugal, Spain, and England.
Owners of the "Fed" include; Rothschild Bank of London, Warburg Bank of Hamburg, Rothschild Bank of Berlin, Lazard Brothers of Paris, Israel Moses Seif Banks of Italy, Warburg Bank of Amsterdam.
To all of the niave postings here who actually believe in the integerity of our "Federal Reserve";
"History records that the money changers have used every form of abuse,
intrigue, deceit, and violent means possible to maintain their control over
governments by controlling money and it's issuance." -- James Madison
_________________________________________________________
"Most Americans have no real understanding of the operation of the international money
lenders. The accounts of the Federal Reserve System have never been audited. It operates
outside the control of Congress and manipulates the credit of the United States." -- Sen. Barry Goldwater (Rep. AZ)
_________________________________________________________
"A great industrial nation is controlled by it's system of credit. Our system of credit
is concentrated in the hands of a few men. We have come to be one of the worst ruled,
one of the most completely controlled and dominated governments in the world-- no longer
a government of free opinion, no longer a government by conviction and vote of the majority,
but a government by the opinion and duress of small groups of dominant men." -- President Woodrow Wilson
__________________________________________________________
Please read some history on the evils of the cancerous parasite commonly known as the "Federal Reserve". It is NOT "Federal", it is private and UN-audited. And it is NOT a "Reserve".
(It is pure, evil theft and needs to be shut down and prosecuted.)
Your lack of understanding trumps my lack of understanding...
Every time somebody from this Administration or their hand picked financial team opens there months the markets go diving down. They need to shut it and get out of the way
Hey genius, the current FED chairman was not appointed by this administration. Please get your facts straight before making a fool out of yourself. Since you think they have no idea how to fix this problem, what is your answer since you are so smart?
Hey Genius, the current FED chairmen has been retained by this administration for two years. Please get your facts straight before making a fool out of yourself. SInce you think they have no idea how to fix this problem, what is your answer since you are so bleeding stupid?
The market is crashing and you still want to privatize Social Security. I say NO. Let the Federal Government handle it at .05 cents Administrative costs. Get rid of the $108,000 limit and thus you have another 75 years tacted on to the current 26 years in the black.
Hey all, you keep putting the blame on Obama. Why doesn't someone stand up and admit it's the Republicans that have put us in this mess. Thanks Bush for all the help. What happened to being an AMERICAN first and a politcal party second???
maybe they should open them thar grammer and spellin books!
Gosh, Hank. On the one hand you condemn republicans, support Obama and then wonder about being American first and political party second? Are you aware of the irony in your post?
I wondered when someone would blame Bush in this thread!
I don't care if the economy grows. If it's not shrinking, what's the problem? We should be shooting for sustainability - not growth.
Get back in class! No adult would say something that stupid.
We need a full blown depression 1930 style. Only way to get it all straightened out.
Jed: Sounds like YOU'RE the one who needs to take a class. An "economy" which needs to grow constantly to be viable is not an economy. It's a pyramid scheme.
Let me ask ya this. Where exactly is your ability to make more money going to come from in a static economy? Jeeeeeezzzzzzeeee, You socialists are dumb!!!! Never learn. Paradise is for AFTER you die.
So typical... a few comments that you don't agree with and then BOOM !!! The name calling. Unbelievable that no one gets along in this country when the ability to put forth an opinion is rejoined with being called names.
All economies have to grow as long as people keep making babies faster then people are dying. All those young adults will need jobs.
Johnathan Swift had a suggestion for the overpopulation in Ireland during his day. Wasn't real popular but did offer a rather sarcastic solution.
Who's hungry?
Not one plug nickel for the World Monetary Fund. Screw them and their retire at 50, 6 weeks paid vacation and on and on and on............
Hey, I retired at 60. Well, actually the company I worked for went out of business and I couldn't find a new job. But it's the same thing except I have to go to the food bank to eat, I don't go anyplace and I'm broke for two years going on three. I guess it's not the same at all.
Jack: Seems lots of folks will be enjoying your kind of retirement before its all over.
If the "stock market" cannot sustain it's grossly over inflated values, similar to housing, without massive government spending of funds the future will not have, it should be permitted to crash.
Can someone please explain to me how "Google", a company that makes NO product, but receives all of it's revenue through "ad space" and has no assets other than a slew of servers around the globe, and some "intellectual" property, be worth more than a Ford or Caterpillar that have hard assets that can be seized in the event of bankruptcy?
The market is in reality not worth more than maybe 1500-2500 max. Everything else is nothing but gamblers playing with other peoples money.. kinda like the government.
We're very seriously screwed... thanks Wall Street and DC... stop living in your fantasy world and come back to reality.
Easy to explain and to understand.
There are two main types of businesses; the first type makes a product like Ford, and the second type provide a service, like Google.
Get it yet?
XDm9mm: Funny you mention Ford, Caterpillar and Google in your example. If you were to take the balance sheet dated 12-31-2010 for each of these companies and only examine the “Property/Plant/Equipment” line item and minus it by total debt, you would be left with the following results:
Google: Property/Plant/Equipment – Total Debt = 8 Billion or $25.81/sh
Ford: Property/Plant/Equipment – Total Debt = -54 Billion
Caterpillar Inc: Property/Plant/Equipment – Total Debt = -3.5 Billion
Yes! Tax the wealthy. And, they'll take their capital gains now instead of waiting for Obama to it from them. Obama couldn't be more anti-growth if his ideas were adopted from Karl Marx. Well, wait a minute....
I'm so sick of that lame tax the wealthy = no job growth fairy tale I could puke, preferably on you. Raise corporate taxes. They keep all their money and hire no one. Their profits go up while workers starve. They cry about a 35% tax rate that NONE of them pay because of all the tax breaks, loop holes and government corruption. It's sickening.
Yes, I can tell you're sick. Hey, damn those private companies for keeping the money they've earned! They should be giving it to you, right? LOL Another loser looking for a handout. Go get a job and try earning a living yourself. You can't find a job? Hmmm. You must be one of those skilled workers, huh?
Wrong Jessie James,Jack's telling the truth.Kinda bites you in the ass doesn't it?Tsk Tsk Tsk
I just love ranking on people who live in Ivory Towers and have Ear Plugs in.Ether that or WAX!
World recession worries spark stock sell off? Haven't they been paying attention for the past 5 years? Here's the next headline: Bernanke lets a wet fart slip and sh*ts himself. Stock Markets take it as a sign the economy's in trouble and sell off begins."
At what point does the idiot-in-chief realize Geithner, Bernacke have to go and what they have been doing ISN'T WORKING ??????????? (Geez)
If he ever takes his eyes off the tele-prompters long enough to see what's going on around him...
Naw.. that'll never happen
Bernanke opens his mouth, stocks crash. Obama visits a plant, it closes. What would we call the opposite of the "Midas Touch"? The "Obama Touch"?
Hey, Mr. Bernanke, start spreading hope and change around. Yesterdays speech gave us a sinking stock-market. It will make many of those "rich" people, not so rich and the president won't be able to squeeze as many dollars as he wants to. He may have to go on a budget. Imagine that!
Would zero growth be such a bad thing?
In general, growth is a good thing when you look at it in the short and medium term. Long term (really long term) the world can't grow forever. 3% growth means doubling every 25 years, so in one century you've grown 16 times over where you are today. That cannot be sustained forever.
I don't know where the surprise really was. Especially in the U.S. We're basically in a depression and have been for sometime. I never saw a recovery and now going for a double-dip is what they say, but all we have done is continued to sink lower over the last 3 years or so. There never was a start of a recovery.
And it's not like the people at the top are too dumb to see this. They've tried to keep people optimistic, but it has reached a point where they've had to fess up and finally admit what is really going.
A band-aid on a depression didn't work. It only bought a small amount of time. Had they let it hit bottom, would could actually be somewhat on a road to recovery by now. Instead, we all have to suffer through this and watch as things will continue to sink and gradually get worse yet. This is a painful, slow death
All of us middle class slaves need to stop purchasing goods except for food and stay home from work for two weeks. I would like to see these ubber-rich CEO's and "government idiots" make any money off us then. We need to have a "green Flu" and have a silent but powerful revolution.
Just another MSNBC day with 'fear' in its title *yawn*
CNBC is using 'depression' (economical) today in descriptive discussion. Good lord.
One thing they aren't discussing is SEC rule changes, ban on shorting and huge Wall Street bonus blood-lettings. Go figure.
This mess was not created by Obama alone, his predecessors, the folks in Congress and their predecessors played a part in this--all of them. They are all puppets of corporations whose interests are not in America or Americans, but only themselves.
The banks/insurance/large corporation lobbyist run this country... not our government. The more money they hand to individuals in Congress the less america receives. I say outlaw the lobbyist or the money that changes hands from one to another. Close all loopholes and tax write-offs other then your home. Stop the wars. Cut out the garbage spending within Government (example: don't pay $1000 for a ream of laser paper when you can buy it for $35 down the street). Since our government luvs special committees why not assign one to every department to figure out the waste... including those who come to work everyday and does not do their job... That committee is held responsible for cutting loss... if they don't do their job then fire and regroup. Simple.
Start at the bottom and work your way up. How much money do we the tax payers pay for your styrofoam coffee cup a day? Can we save thousands a year if you brought your own cup... and your own coffee.
And, Oh yes... I forgot to mention... NO MORE LUMPING BILLS TOGETHER. This is one of our biggest problems. Lumping several bills into one vote. So, if I'm for 3 out of 4 and the 4th one is totally absurd then I'm forced to vote "no" and 3 excellent bills go out the door also.
One bill... one vote... no lobbyist favors allowed. Get this country back on track.
Make being a representative a volunteer job again, and place EXTREME LIMITS on campaign funding contributions. Mabey $2 a person would be a good start.
We are in a depression, folks, and the same people are in charge.
The stock market will continue to be extremely hi risk until our government leaders start showing some common sense when it comes to reacting to our common needs in a timely fashion. Don't expect anything any different for a while. Why should people feel confident in investing when our leaders are a bunch of do nothings! This waiting until the last minute to make neccessary changes to improve things is idiotic, especially when those changes last for 60 days until these morons have to try and pass something else for another 60 days. They are stalling for the election, and from now until then, the markets will be TOAST!
So thanks to the GOP don't expect anything resembling growth in your retirement accounts.
And... They are going on vacation again next week. Hows that for the alarming concerns for the American people out of Congress.
If you walk out that door again... and leave us hanging... You will be done before 2012.
It's been my observation, that he biggest drop prolly hasnt happened yet. Usually that happens around the 3-3:30 time. Its gonna be a "fun" half hr later today as true panick starts, I'm afraid...
CNBC can only talk about "recession" and "fear." Its like they are bound and determined to be THE ONE to make the call and doing all they can to make it happen. How about talking about putting a ban on high velociity trading and banning short selling... stop market manipulation. Talk about the Companies that are doing well..... many of them are. Government Officials just need to shut up. Keep your doom and gloom forecasts to yourself. We are talking ourselves into a recession....
Sell high. Buy low. As soon as it drops low enough there will be a huge surge because of the speculators buying up low priced stocks awaiting the next upswing so they can sell off again causing a big drop so they can buy low causing a big upswing...and on and on and on and on...
So exactly why the hell is this crap news?
The dollar is stronger, gold is dropping & interest rates are the lowest in our history --- Sell your gold & invest in America, we could use the money in this long term deep recession
America nearly collapsed from the last conservative White House that caused a global economic collapse & Europe as well as America are in deep recessions as a result,,,
We have less power now over Middle East affairs as a result of conservative unfinished wars & the damage done to our national security on their watch & a possible 2nd recession coming from Europe who is still suffering as a result of that same global crash
Bachmann & Perry want to launch religious wars for Israel & Christian Zionism
Bottom Line is -- The last thing America, the Middle East or Europe needs is another Conservative Red White House
you are a friggin moron.......your non "RED" white house has done such a wonderful job the past 3 years and they have NO idea how to get out of this.
The Three Stooges "ride again"...Obama, Bernanke, and Geithner.
...and they followed Dub-ya the clown.
The Three Stooges "ride again"...Obama, Bernanke, and Geithner.
I guess the Republicans can fix it then right? Who are you kidding?
If we have a history, Obama will be known as the worst President of all time.
So says the nuts who think Obama isn't a US citizen -- LOL
GW beat him to it.
Excellent call Jim-372206
Jimmy Carter will be so happy he is not number one anymore.