Just HOW LOW Will the Stock Market SINK?
I Have Received Numerous QUERIES On THIS!
I believe the Industrial Average WON’T go Below
7000 And, After Wild Ups And Downs, Will Stabilize
Next week between 8000 & 9000 as crisis fears Drop,
Wild Swings Will Continue for Some Time, but I Suspect
It Will Climb Over 10000 by the Dawn of the Coming Year,
But it will never again be quite the same and, at some Point
In time between 2010 and 2015, it will sink to a historical Low,
Finally going Out of Existence before the Tribulation Period Ends!
October 10, 2008
http://www.tribulationperiod.com/
Begin Excerpt from Associated Press via The Jerusalem Post
W all Street
sell-off spreads worldwide
October 10, 2008
Associated Press , THE JERUSALEM POST
Stock prices in Asia and Europe careened lower Friday, extending a stampede of selling that began in on Wall Street a day earlier, deepening a global financial crisis that has defied all efforts to stop it.
This week’s coordinated interest rate cuts by the world’s central banks to thaw frozen credit markets and boost investor confidence have fallen flat as markets remain gripped by fears about the scale and depth of the likely global recession.
The Wall Street Journal reported that government officials are considering temporarily guaranteeing all US bank deposits and billions of dollars of bank debt, in addition to possibly buying stakes in individual banks.
The New York Times also said officials are reviewing a British proposal that also includes repayment guarantees for certain types of loans.
Administration officials told The Associated Press that several financial rescue plans are being reviewed, but no announcements are likely before finance ministers from the seven biggest industrial nations meet Friday in Washington.
The $700 billion federal bailout legislation enacted on Oct. 3 cleared the way for the government insurance limit for bank deposits to be temporarily raised from $100,000 to $250,000 in cases where bank or savings and loans fail. That guarantee covered $5.2 trillion of deposits, but another $1.8 trillion is not presently covered, according to the Wall Street Journal.
But a Treasury Department official, who spoke on condition of anonymity because of the sensitive nature of market conditions, said covering all deposits is not now being considered. “We raised the limit one week ago and have no plans to remove the limit,” the official said.
Thursday’s anniversary of the US stock market peak turned into one of the worst days in Wall Street history, with the Dow Jones industrials loosing a breathtaking 679 points, or 7.3 percent.
Asian markets followed Wall Street’s cue, as key market gauges dropped 9.6 percent in Japan, 8 percent in India and 7.2 percent in Hong Kong.
European stocks slumped by midday with key market barometers losing 7.3 percent in London, 7.7 percent in Germany and 7.5 percent in Paris.
A stream of selling forced exchanges in Austria, Russia and Indonesia to suspend trading, and the rout in Australian markets caused traders to call it “Black Friday.” US stock futures pointed toward a sharply lower opening Friday.
“Overall it’s the fact that despite the huge firefighting efforts of central banks worldwide we still haven’t seen any thawing of interbank lending that is going to be causing the most concern now,” said Matt Buckled, a dealer at CMC Markets in London.
The late burst of selling Thursday on Wall Street sent the Dow Jones industrials down to 8,579, crashing through the 9,000 level for the first time in five years and wiping out $872 billion of investment value.
As bad as the day was, even worse was the cumulative effect of a historic run of declines: The Dow suffered a triple-digit loss for the sixth day in a row, a first, and the average dropped for the seventh day in a row, a losing streak not seen since 2002.
“Right now the market is just panicked,” said David Whys, chief economist at Standard & Poor’s in New York. “Nobody wants to take on any risk. Everybody just wants to get their money and put it under the mattress.”
Thursday’s sell-off on Wall Street took place one year to the day after the Dow closed at its record high of 14,164.
Since that day, frozen credit, record foreclosures, cascading job losses and outright fear have seized the market and sapped 39 percent of its value.
Paper losses for the year add up to an staggering $8.3 trillion, according to preliminary figures measured by the Dow Jones Wiltshire 5000 Composite Index, which tracks 5,000 US-based companies representing almost all stocks traded in America.
It was the second straight day that Wall Street was rocked by a final-hour sell-off, but this one was particularly shocking.
Most of the day was relatively calm, and the trading floor was quieter than usual because of Yom Kippur. Wall Street awoke to news the federal government was brandishing a new weapon against the financial crisis – considering seeking an equity stake in major US banks in order to stabilize them.
But that step appeared to be as ineffectual as the others Washington has rolled out in recent weeks, including a $700 billion bailout of the financial industry, a coordinated interest rate cut by central banks around the world and direct lending by the Federal Reserve to private companies to provide them with short-term cash.
Acquiring a stake in the banks would be yet another startling intervention by the government in the free market, but economists said President Bush was left with little choice because of the credit markets, where tight lending has choked off the everyday cash that is the lifeblood of the economy.
“In normal times, this would be out of the question, but in the present dire situation, I think the government should be employing all the powers that it can,” said Sung Won Shone, an economics professor at California State University, Ch
annel Islands.
Wall Street has been teetering on the brink of panic for a month now, vulnerable to any bad news. Thursday’s sell-off was triggered when a major credit rating agency put General Motors Corp.
and its finance affiliate under review to determine whether it should be downgraded.
Stock in GM, one of the 30 components of the Dow Jones industrials, lost 31 percent of its value and closed at $4.76 – its lowest level since the Korean War began more than a half century ago.
On Thursday, the Dow was above 9,200 after 1:30 p.m. and still above 9,000 after 3 p.m. The pressure to sell was so intense that the Dow kept dropping precipitously for 10 minutes after the 4 p.m. closing bell as the day’s losses were tabulated.
In percentage terms, the drop in the Dow exceeded the day the markets reopened after the Sept. 11, 2001, terrorist attacks. It was not close to the 22.6-percent decline on Black Monday in 1987, the last stock market crash.
Still, it is becoming increasingly clear that Washington has ever fewer places to reach in its toolbox to stop, or perhaps even slow, the crisis.
Among the options still left are buying up foreclosed properties and making direct loans to homeowners, both of them hard for free-market supporters to swallow.
Speaking in the afternoon before the market closed, President George W. Bush told an audience on the South Lawn of the White House that the economy was going through a “very touch stretch.”
But, he said: “I’m confident in our economy’s long-term prospects.”
After the market closed, the White House said Americans should remain confident despite the market plunge, and Bush planned to speak from the Rose Garden on Friday morning – though he was not expected to unveil any new policy proposals.
“The Treasury Department is moving quickly to use new tools to improve liquidity, which is the root cause of this problem,” White House press secretary Dana Perino said.
“Americans should be confident that every effort is being taken to stabilize our markets.”
Meanwhile, the credit markets remained stubbornly locked-up. The benchmark rate that banks charge each other for loans, known as Libor, rose to 4.75 percent from 4.52 percent a day earlier, signaling banks are still afraid to make loans because they worry they won’t be paid back.
Adding to Wall Street’s nervousness, a ban on short selling – a process in which investors borrow shares of stock and essentially bet the value will fall – expired.
FAIR USE NOTICE: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc.
We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law.
In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more detailed information go to:
http://www.law.cornell.edu/uscode/17/107.shtml.
You may use material originated by this site. However, if you wish to use any quoted copyrighted material from this site, which did not originate at this site, for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner from which we extracted it.