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Subscribe to RSSWall Street closed the day up slightly Friday, ending a terrible week that saw the Dow suffer its worst losses since October 2008 – the week Congress passed the $700 billion Troubled Asset Relief Program.
The Dow Jones industrial average advanced 37.65 points, or 0.35 percent, to 10,771.48. The S&P 500 rose 6.87 points, or 0.61 percent, to 1,136.43. And the tech-heavy Nasdaq was up 27.56 points, or 1.12 points, to 2,483.23.
Even with the slight gains Friday, the Dow and S&P 500 lost more than 6 percent for the week. The Dow has fallen more than 15 percent since its recent peak on July 21, and fell below its 2011 closing low of 10,719, reached Aug. 10, several times Friday morning.
All week, traders have been stung by worries that the global economy is headed for another recession. European leaders seem unable or unwilling to solve the debt crisis, threatening some of its biggest financial institutions. In the U.S., Republican and Democrats remain in a stubborn standoff that could force the government to shut down.
John Merrill, chief investment officer at Tanglewood Wealth Management in Houston, told the Associated Press that Friday's respite might not last:
"Nothing goes in a straight line, even markets that are declining steeply," he said. Merrill said the market was moderating as traders bought shares that looked like bargains after the week's selling. But the problems that have weighed on markets for months now show no sign of letting up.
It's common after a big plunge for volatility to ease as investors start buying stocks that look cheap. Bargain-hunters "bring some stability into the market for a day or two, until they've used up their buying power," Merrill said. "Then the macro issues surface again" and volatility returns.
A look at the driving forces behind recent market moves, with David Darst, Morgan Stanley Smith Barney, and Vadim Zlotnikov, Alliance Bernstein.
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To be continued on Monday!
From article I found online (link at the end):
So, what’s the remedy?
We need to restore confidence, and building confidence depends on three things; jobs, jobs and jobs. When people are employed; they’re less fearful and more optimistic about the future. And, they spend money, too, which boosts demand, increases growth and leads to a virtuous circle. FDR said it best in his First Inaugural Address, March 4, 1933. Here’s a clip:
“Our greatest primary task is to put people to work. This is no unsolvable problem if we face it wisely and courageously. It can be accomplished in part by direct recruiting by the Government itself, treating the task as we would treat the emergency of a war, but at the same time, through this employment, accomplishing great — greatly needed projects to stimulate and reorganize the use of our great natural resources….
And finally, in our progress towards a resumption of work, we require two safeguards against a return of the evils of the old order. There must be a strict supervision of all banking and credits and investments. There must be an end to speculation with other people’s money. And there must be provision for an adequate but sound currency.
These, my friends, are the lines of attack.” –Franklin Delano Roosevelt, First Inaugural Address, March 4, 1933.
This is a deflationary crash. Debt is the problem and we have more of it now. Nothing has been fixed. To sustain GDP growth the government has borrowed unprecedented amount. Nobody prospers by borrowing. The crash will go into history books. This will be the Greatest Depression ever.
www.tradingstocks.net/html/prepare_for_market_crash.html
Lose about 700 points and gain back around 35 on Friday.
YEP....that is "ENDING ON A GOOD NOTE".
I wonder HOW MUCH wealth was LOST for the "cloaked" 665 points.
Watch out for the landmines during the last week of September as Greece will officially declare default and the remaining PIIGS line up beginning to walking off the cliff. All hell will break loose on WallSt and MainSt. The result will be devastating: More job lost, skyrocketing foreclosures, spiral housing price decline, additional bank failures, and more misery.
The real news that should be reported is that we are in a much worse state than 2008 or even the great depression, where at that (2008) time businesses (which by the way caused thie catastrophy) were being bailed out. Today that very bail out sees nations bankrupted, some by mismanagement but most caused as an out working of business bailouts.
So step back take a GOOD look at the situation, countries are broke (almost ALL of them), we can't just keep printing money it doesn't work. Then the only trick the nations have left is a debt amnesty followed by combined global currency or they will start WW111 which is exactly what happened at the last depression. Now the last depression we did not have it anywhere near as bad as we are now. The level of private debt as we have it today DID NOT EXIST, we didnt have imaginary (emporers new clothes style) Credit Default Swaps (imaginary value $1,500 trillion) & we had a gold standard. What do we have today nothing but debt & coming suffering because the governments have now ensured its worse than 2008 (an observation no-one went to goal/jail).
Now if anyone thinks things are getting better after considering that I can only advise you to go back to your doctor & ask for different medication as its affecting your perception & judgment. GOOD LUCK NEXT WEEK.
Nick Mihaleff:
Only the heavy duty socialist nation like the PIIGS are on the verge of imminent default. USA, a neo-socialist nation, has not yet reached that point. While Japan, China, and Saudi Arabia are creditor nations, USA is the world's biggest debtor.
USA achieved the dubious title as its people adopt the notion that Big Government should take care of each and every American from craddle-to-grave. Another sign of socialism: Labor unions aggressively seek higher minimum wages with added benefits despite falling productivity.
THIS IS A HELL OUT CAMPAIGN OF FEARMONGERING TO CREATE PANIC
ON ALREADY PREDISPOSED INDIVIDUALS, THE PURPOSE BEING TO ACHEIVE HIDDEN
POLITICAL AGENDA.
P Portugal
I Italy
I Ireland
G Greek
S Spain
- None of these countries are HAVEY DUTY SOCIALIST
- No one, no where in America somebody accept or will, the government
of USA care from CRADLE TO GRAVE to
anyone, everyone must earn it.
- No labor union in USA advocate socialism,
minimum wage is not a sign of socialism, falling production is the result of
mismanagement and weak oversight. Socialism is Un-American period.
When government dictates the wages of worker regardless of the worker's productivity, it has adopted one of the tenets of socialism. It is the Labor Unions that advocated and obtained minimum wage laws from socialist politicians.
Falling production has as much to do with business mismanagement as well as labor unions' unreasonable interference in business operation. UAW is case on point. An auto assemblyman is not allowed to repair a small electrical duplex. A carpenter can't repair a leaking faucet and a plumber can't do a small drywall repair. How many union workers are required to install a duplex? Try five.
A union plumber to disassemble the pipes obstructing the access. An union electrician to wire together the duplex. A union carpenter to nail together the framing support. A union drywall man to fill-in and patch the hole. And a union painter to sand and finish the wall surface.
Americans are delusional about their self reliance and independence. Today, a growing number of Americans expect and receive food stamps, unemployment benefits, subsidized housing, socialized medicine, social security and any other entitlement programs granted by government. Any notion that Americans earn these benefits is a fantasy.
The PIIGS are part of Europe, the birth place of Karl Marx, the father of socialism or communism depending on the degree of labor union involvement in creating Big Government that seeks to control price, production and wages. Marx's disciples, Lennin, Stalin, Trosky, certain followers of Nazism, Fascism, and etc are variants of the same theme: freebies to the proletariat class by heavy taxation of the wealthy or the upper middle class.
The French socialist party during WWII, the Vichy government, welcomed the Nazi occupation of France as Nazism contains sufficient socialist elements of the Vichy political platform. Even today, socialism is alive, strong, and destructive to French and Italian economy. Spain's Franco war was about socialism versus dictatorship. Powerful labor unions in Ireland and Greece have extracted generous entitlement programs that have bankrupted the nations.
Socialism may be Un-American, but America under the influence of powerful labor unions has become more socialist than capitalist. Despite America's obvious reputiation of capitalism, certain individuals refuse to see the gradual adoption of socialism in America. It is these hard-core, die-hard, blind and zealous patriots who are destroying America.
A loss of 6% this week and 15% over the past two months is now a "good thing" according to MSNBC. Spin baby spin.
They just love to shoot the Crap around don't they?
Yep, gotta put as much positive spin as they can on the current administration. Pitiful attempt for a "news" group. No better than FOX or CNN in so many ways.
Yep +37 is a great week!!! I love to watch the rich gut each other :)
Only the Obama and DNC spin machine, MSNBC, would call this week ending on a good note. Shills, everyone of you! Wipe off your chins!
move forward one inch, drop back 5 miles. Move forward another inch, drop back 3 miles.... and this is ending on a good note? What are you guys at MSNBC smoking? Don't bogart, I could use some to ease the pain.
Hi Beev, Yeah MSNBC leftist Obozo lapdogs are at it again. Words are starting to fail me. These clowns at the MSNBC comedy channel have me laughing alll the time. It is really stupid how shallow they are and once you realize they are leftist spin masters, you can not take any of this seriously anymore. It is a shame that they have become an agent of the left. Progressives and unions WILL destroy this country. Oh did I leave out our marxist in chief?
Obama is not alone ren, he has had help in the GOP/TP who cater to their own corporate masters, don't forget that on your future one sided rants.
Look at the bright side - if the government does shut down they won't be able to give away any more taxpayer money, they won't be able to reduce taxpayer benefits/ increase their own, and we won't have to listen to their moronic arguments!!!! And the icing on the cake: once they actually get stung in the wallet, hopefully they'll just resign, and we can replace all of them with people that know how to run a business!!!
God Bless you business owner hang in there Obozo cant last too much longer.
Well, they can continue to borrow and spend and then come back to the well and raise more taxes and fees. Noticed that the politicans are doing rather well, they get all their goodies and lots of paid vacations and private gyms and all. If ever there was a group toward whom class envy should be directed, it would be congress and the White House. Wonder how many meals they're missing?
We've come a long way, baby...
omg!!! so, i work at a jewelry store and we sell silver and gold coins and well let me tell you, if u are investing in that you are a absolute silly goose, y well because just like in 1933 the federal govt will step in a sieze all of your precious gold and silver, well that what u get for not believing in the us dollar...news flash.....i really would of never put the word bubble on it but after reading all these postings on it, for sure it is what it is.....gold is beautiful wear it and enjoy it dont buy it for the future in believing that that the dollar will crash....invest in the banks remember they are fdic insured your gold isn't!!!!! suckas
So..............it sounds as if we Americans lost a lot of money in our 401(k) plans this week. Oh well. It's only on paper. Unless you were planning on retiring tomorrow and needing the money anyway.............
The way things are going we'll all be living in thatched huts, foraging for grubs, and boiling septic water. Hey wait a minute....isn't that what they do in Kenya?
Are you are small business owner? like myself, Refi or anything is very difficult for us. It is not easy now a days but still I was able to do refinance with "123 Refi" where you can find the rates with out SSN! they will help you
http://www.financialsense.com/contributors/jim-willie/2011/09/22/billboard-signals-of-collapse
More hope and change. Had enough yet?
Everything is over rated,over valued,and over priced! Add no jobs to that and what do you have! Yet the "War Machine" grinds on! Wall street and DC is a Racket,nothing more,nothing less.
The fundamentals cannot support the level of inflation the financial markets are trying to impose on the global economy. While the blue chips may be fundamentally sound, even they cannot provide the level of inflation (debt) the markets are demanding.
We are witnessing the unraveling of Supply Side, Trickle Down economics. Those economic theories are driven by inflation (through creation of debt) - the real global economy can no longer sustain that inflation. Obviously the process is going to be slow and painful. In the end the global economy will return to true economic fundamentals of creating tangible wealth - adding value to natural resources through labor (invention, innovation, manufacturing).
The pendulum is swinging from favoring the investor class (debt market) toward favoring the working class (production market). While the global economies continue to create false wealth through inflation (debt) - nothing will improve. The natural economic forces will be a correction that eliminates the false wealth based on inflation (debt default, deflation). After the financial services industries finally collapse (since they are based on an unsustainable model) the global economies will begin to create real wealth by adding tangible economic value.
The economies that are prepared to educate their working populations and willing to support invention and innovation will be the first to emerge as leaders in the global economy. Those economies that continue to support inflation based creation of wealth will be the ultimate losers.
Yep. That little Friday perk was really good news, alrighty. Kinda like when an alley drunk is able to sit down before he vomits then passes out. At least he didn't hit his head!
Memo to self: get out of 401k = get out of up and down market = no unwanted pregnancy
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A 37 point gain on friday after losing 6% value earlier in the week is hardly a glimmer of hope!