Daily Archives: August 5, 2011

Freaking Out As The Dow Jones Plummets 512.76 Points

Stocks Nose-Dive Amid Global Fears.  WSJ. The Dow Jones wipes out the gains from one year.  Worst drop since December 2008. 

“It was an absolute bloodbath,” said John Richards, head of strategy at RBS Global Banking & Markets.

Image courtesy of http://www.vayagif.com/gif/8863.

There was no one single catalyst for the downdraft, traders said. Rather it reflected multiple concerns that have mounted over the past month and came to a head this week. Worries about a U.S. default, settled by a last-minute fix to lift the country’s debt limit on Tuesday, have given way to broader fears about the failing health of the domestic economy. That will lead to close scrutiny of Friday’s jobs report.

Now, now.  Here’s Why You Shouldn’t Buy Into This Market Drop.  Forbes.  A “reactionary bounce,” versus “It’s pretty hard to stop a train going 100 miles per hour”?

“Seeding the Economy.  Johnny Appleseed.  Barack Obama.  U.S. Economy.  Salt.”
Image courtesy of Eric Allie via http://furiousdiaper.com/?p=3130.