“Total fear”: Dow drops 512 points

posted at 4:06 pm on August 4, 2011 by Allahpundit

Remember the last time America had a nice quiet year of economic stability and relative political tranquility? If you do, let me know. Maybe it’ll jog my memory.

“Total fear”:

U.S. markets were already sharply lower on widespread worries, including the weak job market. But the selling gained momentum as Japanese and European policymakers stepped in with dramatic measures to shore up their financial markets.

There’s “total fear” in the market, said Bob Doll, chief equity strategist at the world’s largest money manager, BlackRock.

All three major indexes tumbled more than 4% Thursday and erased all their gains for the year. The indexes have also pushed into ‘correction’ territory – defined as a 10% drop from their highs earlier this year. Over the past 10 days alone, the Dow, S&P 500 and Nasdaq have dropped about 8%.

Debt-ceiling discontents claim the sell-off this week is a backlash to the feebleness of the deal in addressing America’s long-term debt problem. I don’t buy it. The market’s known for weeks that the deal wasn’t going to touch entitlements or lock in major spending cuts. Once Obama demanded an extra $400 billion in new revenue and Boehner walked away, the grand bargain was dead. If, as Erin Burnett speculated, shares were pricing in an elevated risk of a credit downgrade, that should have happened Monday or last week. I think J Pod’s right that what we’re seeing here is markets pricing in something else — namely, the growing risk of a double dip:

In fact, the debt deal came to fruition at exactly the same time as a series of devastating economic reports that indicate we will be lucky if the current moment is only a “slowdown” and not the beginning of—maybe even the middle of—a double-dip recession. You don’t need an economics degree to see the disaster in these numbers. Lower consumer confidence means less consumer spending, which means less demand, which means less economic activity, which means no improvement in employment figures and very possibly a worsening of unemployment. What we are seeing on Wall Street this week is that a coming recession is being “priced in.”

By “devastating economic reports,” he means this, this, and this, all of which are being served with a garnish of a new debt crisis in Europe. Follow the link above to Podhoretz’s post and read his account of chats with investors. They can’t make a move because they’re paralyzed with uncertainty over government policy, and since the Super Committee may or may not produce tax reform four months from now, that’s bound to continue until Thanksgiving at least. That’s a more trenchant criticism of the debt deal vis-a-vis the stock sell-off, I think, than knocking it because it took only a few pebbles off of America’s mountain of debt. It did nothing much to encourage job creation and it prolonged regulatory uncertainty, and now the market’s reacting accordingly. Bad days ahead — starting tomorrow, when the July unemployment numbers come out. Exit quotation:

Economists at Bank of America’s Merrill Lynch said Thursday that the economy is just one shock away from a recession. They put the probability of a recession in the next 12 months at 35%. However, they said the likelihood that the economy is currently in a recession was just 10%.

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The economy by Barack Obama….”shot at and missed, sh!t at and HIT”.

milwife88 on August 4, 2011 at 4:28 PM

no, I think default is refusing to pay the debts ever.

joeindc44 on August 4, 2011 at 4:28 PM

I wish I had money, I would be buying tomorrow.

Cindy Munford on August 4, 2011 at 4:28 PM

Dow’s losing streak unmatched since 1978

Jimmy Carter Returns.

http://www.marketwatch.com/story/dows-losing-streak-now-in-ninth-day-2011-08-03

portlandon on August 4, 2011 at 4:29 PM

Dow’s losing streak unmatched since 1978

Jimmy Carter Returns.

portlandon on August 4, 2011 at 4:29 PM

You may have seen a thousand-point drop instead of this.

Allahpundit on August 4, 2011 at 4:13 PM

And you may well still see something more than that!

HondaV65 on August 4, 2011 at 4:29 PM

Oh I almost forgot. Today they had fear, I bet tomorrow we see panic.

dogsoldier on August 4, 2011 at 4:25 PM

Correct. All the gains we made in our 401k’s etc. over the past year, disappeared today. I’m getting out in the morning.

Knucklehead on August 4, 2011 at 4:29 PM

I wish I had money, I would be buying tomorrow.

Cindy Munford on August 4, 2011 at 4:28 PM

what, gold? :)…just kidding…

jimver on August 4, 2011 at 4:30 PM

When it comes to macroeconomic policy, I wouldn’t call Wall Street as my expert witness. The Dow almost doubled between March 2009 and last April. Was that a vote of confidence in Obama or just in equities vis-à-vis the dollar?

Seth Halpern on August 4, 2011 at 4:30 PM

If it’s any consolation, the New York Stock Exchange has a “circuit breaker” that will close trading for the rest of the day if the Dow Jones Industrials declines 3,600 points.

Emperor Norton on August 4, 2011 at 4:31 PM

The trolls are especially excited today. Looks like someone rattled their cages.

strictnein on August 4, 2011 at 4:31 PM

If there was no debt ceiling deal, the media would have blamed this and all bad economic news for the forseeable future on the Tea Party and the stalemate.

swamp_yankee on August 4, 2011 at 4:31 PM

700k retirement fund, down 5%. Wake up $35k lighter. America loves this President!

Limerick on August 4, 2011 at 4:31 PM

Knucklehead on August 4, 2011 at 4:29 PM

You and everyone else. Not looking forward to the news tomorrow.

milwife88 on August 4, 2011 at 4:31 PM

EIGHT months of gains wiped out in 9 trading days!!!…All I can say is … … Bravo Obama!!!

See the Third World
Without Having to Leave America
Save Big Bucks and Long Flights
Reelect Barack Obama in 2012!!!

Lon Chaney on August 4, 2011 at 4:32 PM

And folks, Obama said to his supporters that he’s not even halfway there yet ……

Sir Napsalot on August 4, 2011 at 4:32 PM

If there was no debt ceiling deal, the media would have blamed this and all bad economic news for the forseeable future on the Tea Party and the stalemate.

swamp_yankee on August 4, 2011 at 4:31 PM

LOL. You don’t think the media is going to try and pin whatever happens on the tea party somehow?

Kataklysmic on August 4, 2011 at 4:33 PM

Well. So this is what “spreading the wealth around” looks like. I have to say that I don’t like it. Of course, I just bought cases of cat food, so I’ll be okay for a while. The cats? Not so much.

Physics Geek on August 4, 2011 at 4:33 PM

Obama has a major decision to make…

Hoops or hit the links.

trigon on August 4, 2011 at 4:33 PM

I wonder for how much money a smug can keep chanting I don’t care, obama is awesome. They’ll know when their 401k’s die.

joeindc44 on August 4, 2011 at 4:33 PM

“They can’t make a move because they’re paralyzed with uncertainty over government policy…”

Obowma – “That’s a feature, not a bug!”

Seven Percent Solution on August 4, 2011 at 4:33 PM

Just priming the market, so to speak, so QE3 can be rolled out in a couple weeks and the Bernank can save us all!!!

Bro with the Sick Flow on August 4, 2011 at 4:34 PM

Bayam and Krugman. The last 2 humans who still believe stimulus works.

angryed on August 4, 2011 at 4:34 PM

They can’t make a move because they’re paralyzed with uncertainty over government policy

Just like every one else. When there is no plan to govern, only spending programs for their own special interests, and political games to get a vote… well, I guess this is what we get.

tinkerthinker on August 4, 2011 at 4:34 PM

It’s now clear that without stimulus, the economy would have experienced a major fall over the last two quarters. With stimulus coming to and end and no political drive for another round of spending to keep the economy afloat, it’s looking like a classic balance sheet recession in the US.

bayam on August 4, 2011 at 4:18 PM

Isn’t that what Bluffy the Economy Slayer has been talking about?

Same with DWS, why hasn’t that talk of ‘Stimulus’, Stimulated the economy?

Inquiring minds want to know.

Chip on August 4, 2011 at 4:34 PM

LOL. You don’t think the media is going to try and pin whatever happens on the tea party somehow?

Kataklysmic on August 4, 2011 at 4:33 PM

I live in the real world. The electorate is not buyin this as the Tea Party’s fault. They would have if both sides were stuck in stalemate and the media was pushing the meme that “both sides” are responsible.

swamp_yankee on August 4, 2011 at 4:35 PM

Damn you corporate jet owners! Do your fair share and buy stocks or something.

SouthernGent on August 4, 2011 at 4:35 PM

I bet George Soros is happy.

rbj on August 4, 2011 at 4:36 PM

Outspoken Anti-Stimulus Economist Robert Barro Takes A Victory Lap

Harvard economist and prominent Hayekian Robert Barro made headlines last summer when he contested the multiplier effect of the stimulus and called it a waste of money.

Now, as the economy falters and governments around the world worry about debt, he is taking a victory lap.

Lon Chaney on August 4, 2011 at 4:36 PM

If UE rises tomorrow (I’m predicting 9.3%-9.5%), this will be only the tip of the iceberg.

Bro with the Sick Flow on August 4, 2011 at 4:36 PM

I bet George Soros is happy.

rbj on August 4, 2011 at 4:36 PM

Oh yeah! Closed that fund of his two weeks ago.

Limerick on August 4, 2011 at 4:37 PM

You mean how is default worse than this. Well, default would have turned off the tap on 40% of federal spending instantly, at least for a few days. You may have seen a thousand-point drop instead of this.

Allahpundit on August 4, 2011 at 4:13 PM

Right, so we can solve this by more borrowing.

Now I get it.

So maybe more taxes and regulation would also help stimulate the economy.

esnap on August 4, 2011 at 4:37 PM

Bro with the Sick Flow on August 4, 2011 at 4:36 PM

What’s UE?

Akzed on August 4, 2011 at 4:37 PM

If there was no debt ceiling deal, the media would have blamed this and all bad economic news for the forseeable future on the Tea Party and the stalemate.

swamp_yankee on August 4, 2011 at 4:31 PM

They are going the blame the Tea party anyway. The .7% ‘cut’ to projected future federal spending will be blamed for everything bad that happens. It’s absurd, but the MFM were already doing it before today. Now they are really going to go bonkers on it.

forest on August 4, 2011 at 4:38 PM

The trolls are especially excited today. Looks like someone rattled their cages.

strictnein on August 4, 2011 at 4:31 PM

They are just cranky because today is not a good day to talk about how the top 1% are making so much more money than everyone else.

pedestrian on August 4, 2011 at 4:38 PM

My retirement fund has lost a bunch in the last week

ConservativePartyNow on August 4, 2011 at 4:39 PM

Somewhere the president is agonizing over whether to play a bump and run or try a flop shot.

Ted Torgerson on August 4, 2011 at 4:16 PM

IMHO, a double-digit handicapper should never, ever, evah, attempt a flop shot. People get hurt when that happens.

It’s unfortunate BHO decided to try the “flop shot” with the economy. And true to form, people got hurt…

Neo-con Artist on August 4, 2011 at 4:40 PM

I live in the real world.

swamp_yankee on August 4, 2011 at 4:35 PM

Accepting that we can continue to borrow our way to prosperity and the bill will never come due is not ‘the real world.’

fossten on August 4, 2011 at 4:40 PM

How could we get from here to Armageddon?

I mean, losing a year’s worth of stock gains sucks, but food riots would be worse.

Now that we’ve perhaps pushed through an economic barricade, how close are we all to losing weight?

Akzed on August 4, 2011 at 4:40 PM

0bama and his birthday worshipers are gonna party like it’s 1929!!

Dr. Carlo Lombardi on August 4, 2011 at 4:41 PM

Guess those Wall Street fat cats Obama loves to point out now have a good excuse for no longer being able to contribute to Obama’s re-election fund.

And, if this continues, neither will a whole lot of regular folks, too.

See, there is a silver lining to all of this. :-)

coldwarrior on August 4, 2011 at 4:41 PM

I think it is too early to buy. All these “gains” of the past year made no sense.

yocheved on August 4, 2011 at 4:41 PM

This is all about Europe. We spent multiple trillions of dollars keeping Europe afloat. We conder to spend more multiple trillions of dollars to keep Europe afloat.

Europe is scared we aren’t going to be able to keep them afloat anymore.

Our superinvestors are afraid we aren’t going to be able to keep Europe afloat.

If Europe goes, we all do because they owe us so much.

Meanwhile, I weathered this the last time and everything came back and I will weather it again. Those who dumped their 401ks in panic last time just lost out and paid a penalty on top for the panic.

Greyledge Gal on August 4, 2011 at 4:41 PM

Remember when we thought the world was ending in the 90′s? We will look back in 20 years and wonder what the hell we were worried about.

Oh, hang on, 2031 is calling.

Dang, can’t hear anything over the screams of all the people…

Neo on August 4, 2011 at 4:42 PM

conder = continue

Greyledge Gal on August 4, 2011 at 4:42 PM

And, today Obama turns 50 and is having a huge birthday party. Perhaps he should call it off. There is nothing to celebrate.

SC.Charlie on August 4, 2011 at 4:42 PM

New investment advice for the forthcoming depression:

Invest in hand-cranked can opener manufacturers (no powered ones – there won’t be any electricity) that everyone will be using to open their daily ration of one can of dark chunk tuna (no solid white albacore allowed).

Wait – the stock market will be closed — just buy up any can openers you can find.

fred5678 on August 4, 2011 at 4:42 PM

Let’s call Congress back in to emergency session to handle this in a BI-PARTISAN way! Yes, yes, yes!

SouthernGent on August 4, 2011 at 4:43 PM

bamas to summer on Martha’s Vineyard once more in August

President Obama is planning to return to Martha’s Vineyard again for vacation this summer, the third time he and his family have visited the island since he took office.

INC on August 4, 2011 at 4:28 PM

Elitist.

Heard another interesting stat today (Limbaugh?) that since he’s taken office, O’bama has already attended 37 fund raisers.

By this same time in his term, his 2 predecessors had attended a total between them of less than 10.

Del Dolemonte on August 4, 2011 at 4:43 PM

Wait – the stock market will be closed — just buy up any can openers you can find. fred5678 on August 4, 2011 at 4:42 PM

You can’t eat a can opener.

Akzed on August 4, 2011 at 4:43 PM

Just checked my portfolio. Everything and I mean everything I own is up…except US govt. bonds. I don’t think I’ve ever seen that before. When the market tanked back around Y2K I stayed about even, gains pretty much balanced out losses. This is different, it’s kind of scary.

Oldnuke on August 4, 2011 at 4:44 PM

“by their fruits we shall know them.”

This is the Left, these are their fruits.

rrpjr on August 4, 2011 at 4:44 PM

What’s UE?

Akzed on August 4, 2011 at 4:37 PM

He means the official unemployment rate (the U3 rate). Regardless of changes in the U3 rate, which is a poor measure of unemployment in a period with prolonged high unemployment rates, the better measures of unemployment won’t show improvement. The employment/population ratios, for example, have bottomed out but haven’t experienced a recovery.

DKCZ on August 4, 2011 at 4:45 PM

fred5678 — I’d invest in Swiss Army Knives — a lot more useful than just a can opener.

Greyledge Gal on August 4, 2011 at 4:45 PM

Well, default would have turned off the tap on 40% of federal spending instantly, at least for a few days. You may have seen a thousand-point drop instead of this.

Allahpundit on August 4, 2011 at 4:13 PM

It reminds me a lot of TARP. Who knows what would have happened. To this day, any financial services person I talked to praises TARP.

NoStoppingUs on August 4, 2011 at 4:45 PM

I bet George Soros is happy.

rbj on August 4, 2011 at 4:36 PM

or maybe he’s behind it lol :-) he’s known to have been ‘broken’ the Bank of England before when he bet against the pound and won.. he was also was behind Asia’s financial crisis a while ago…and guess who warned the EU a few months ago that the euro/zone would collapse soon…yep, that’s right…

jimver on August 4, 2011 at 4:45 PM

http://nation.foxnews.com/president-obama/2011/08/04/wh-press-corps-hammers-carney-what-president-doing-help-economy-besides-going-fundraisers

Guess the media is starting to wake up too.

gophergirl on August 4, 2011 at 4:22 PM

Some loony woman on Hannity last night made the claim that little Bammie spending time on a fundraiser and his reelection was to some extent forgiveable because he was personally stimulating the economy.

slickwillie2001 on August 4, 2011 at 4:46 PM

Wait – the stock market will be closed — just buy up any can openers you can find. fred5678 on August 4, 2011 at 4:42 PM

Investment tip of the week

teke184 on August 4, 2011 at 4:46 PM

All these “gains” of the past year made no sense.

Karl Denninger says:

“The original gains were never real in the first place. They were lies; there was no real recovery. There was no ability to finance what we were doing economically. We simply charged up more and more debt and pumped the stock market from 666 [on the Standard and Poor 500 index] to 1370 but the economic activity necessary to support that doubling didn’t exist.”

Emperor Norton on August 4, 2011 at 4:47 PM

I live in the real world. The electorate is not buyin this as the Tea Party’s fault. They would have if both sides were stuck in stalemate and the media was pushing the meme that “both sides” are responsible.

swamp_yankee on August 4, 2011 at 4:35 PM

Well, I’m glad to hear that. If the electorate are no longer believing media lies then we can run whoever we want in 2012 and still win.

Kataklysmic on August 4, 2011 at 4:47 PM

DKCZ on August 4, 2011 at 4:45 PM

Grazie.

Akzed on August 4, 2011 at 4:48 PM

Remember what Carney said earlier-the White House doesn’t pay attention to things it has no control over.

vcferlita on August 4, 2011 at 4:48 PM

Guess the media is starting to wake up too.

gophergirl on August 4, 2011 at 4:22 PM

Tapper hammered him. I’m waiting for the rest of the media to do that. I guess whenever they are personally hit financially then we’ll see that.

INC on August 4, 2011 at 4:50 PM

Remember what Carney said earlier-the White House doesn’t pay attention to things it has no control over.

vcferlita on August 4, 2011 at 4:48 PM

I guess that’s a more politically correct way of saying “The only things Obama can focus on are lunch and vacation.”

teke184 on August 4, 2011 at 4:50 PM

You mean how is default worse than this. Well, default would have turned off the tap on 40% of federal spending instantly, at least for a few days. You may have seen a thousand-point drop instead of this.

Allahpundit on August 4, 2011 at 4:13 PM

LOL

Actually, the DOW has dropped MORE than thousand points the debt deal became apperant.

What’s you next excuse? That it would’ve dropped 2,000 points? Allah, Podheretz and rest of the Establishment GOP apologist are so heavily invested in the idea that this crappy debt “deal” was necessary, that you will make any excuse for it’s devastation on the markets.

Norwegian on August 4, 2011 at 4:50 PM

I can always whore myself out.

Apologetic California on August 4, 2011 at 4:13 PM

I can’t. Got too old. :(

katy the mean old lady on August 4, 2011 at 4:51 PM

The word from Bernie Madoff is to print counterfeit money.

Without gold to back the money, all counterfeits are equal.

Then when that scam is exposed,you counterfeit gold bars.

Then counterfeit American jobs, nevermind,the Government already does that.

All you really need is a a gullible public around the world which believes in the Easter Bunny and the American dollar.

jimw on August 4, 2011 at 4:52 PM

That sound you hear is The Bernanke cranking up the printing presses. I think the lights just went dim for a second there.

RedRedRice on August 4, 2011 at 4:52 PM

All together now: “HAPPY BIRTHDAY TO YOU…”

ReaganWasRight on August 4, 2011 at 4:53 PM

You mean how is default worse than this. Well, default would have turned off the tap on 40% of federal spending instantly, at least for a few days. You may have seen a thousand-point drop instead of this.

Allahpundit on August 4, 2011 at 4:13 PM

Huge difference between “instantly” and “a few days” – if a defualt was actual.

And even if it dropped the 1000 – it would have been a real market drop not some manipulated pump and dump, hense the $B quarterly earnings, while not lending tradtional monies – like banks should be doing (hello Glass Steigel) and not playing with equitites.

Please take a look at 1927-1945 Dow appreciation – then please try to talk about “cause effect”…

Odie1941 on August 4, 2011 at 4:54 PM

Debt-ceiling discontents claim the sell-off this week is a backlash to the feebleness of the deal in addressing America’s long-term debt problem. I don’t buy it.

You can buy what you wish, Allahpundit. Just don’t stake your future on the markets right now, LOL.

The answer is right in front of you. Why should investors invest in a shaky economy that is laden with $14.4 trillion in debt scheduled to rise to $17 trillion in eighteen months or less.

Thank you President Obama, John Boehner, Mitch McConnell, Harry Reid and Nancy Pelosi.

You simply can’t make stuff like this up.

TheRightMan on August 4, 2011 at 4:56 PM

You may have seen a thousand-point drop instead of this.

Allahpundit on August 4, 2011 at 4:13 PM

We’re half way there.

bw222 on August 4, 2011 at 4:56 PM

You may have seen a thousand-point drop instead of this.

Allahpundit on August 4, 2011 at 4:13 PM

We’ve dropped OVER a thousand points since Monday.

portlandon on August 4, 2011 at 4:58 PM

Actually, the DOW has dropped MORE than thousand points the debt deal became apperant.

What’s you next excuse? That it would’ve dropped 2,000 points? Allah, Podheretz and rest of the Establishment GOP apologist are so heavily invested in the idea that this crappy debt “deal” was necessary, that you will make any excuse for it’s devastation on the markets.

Norwegian on August 4, 2011 at 4:50 PM

This makes no sense. No one said the deal was going to help the economy. Things A) Continue to suck or B) Suck faster and go into crisis mode.

Absolutely, a default would have made this worse. Only one tiny agency went into a “default” scenario, the FAA, and that started to cause problems.

The deal saved the Tea Party from being a party to this mess.

swamp_yankee on August 4, 2011 at 4:59 PM

Actually, the DOW has dropped MORE than thousand points the debt deal became apperant.

What’s you next excuse? That it would’ve dropped 2,000 points?

sure, and the eurozone collpsed coz the US didn’t reduce enough spending…come one…the markets collapsing today doesn’t have so much to do with the debt ceiling deal…look at the other European markets too… Italy and Spain might default soon, do you think that has something to do with the panic in the markets, especially when the European Central Bank said clearly that there would be no more bailout money and that’s that…

jimver on August 4, 2011 at 5:00 PM

Eeyore is alive and well, I see.

Sadly, he is right.

Again.

hillbillyjim on August 4, 2011 at 5:00 PM

You mean how is default worse than this. Well, default would have turned off the tap on 40% of federal spending instantly, at least for a few days. You may have seen a thousand-point drop instead of this.

Allahpundit on August 4, 2011 at 4:13 PM

You are in way over your head.

nico on August 4, 2011 at 5:01 PM

And even in the 11,000 range it’s still higher than it should be. With this economic mess we’re in right now, the DOW should be hovering in the high 9′s, breaking 10k.

ButterflyDragon on August 4, 2011 at 5:05 PM

I can’t. Got too old. :(

katy the mean old lady on August 4, 2011 at 4:51 PM

Some people like that.

As to the news, which is better? People selling like crazy because we might go into a recession or because it’s obvious we’re not tackling our debt problems? I feel like one will eventually beget the other anyway.

Esthier on August 4, 2011 at 5:05 PM

Bayam and Krugman. The last 2 humans who still believe stimulus works.

angryed on August 4, 2011 at 4:34 PM

Oh, I believe that stimulus can work, it’s just it has no room when you’re this much in debt, and going further into debt provides ever more resistance.

Obama never passed a stimulus bill, funding the completion of government projects that became strapped for cash is not stimulus simply because it was spending. Stimulus involves spending, but spending does not entail stimulus. All spending does is give people jobs until the money runs out. It was a party-machine bill. The Dems embezzled money from the taxpayers to go into their re-election coffers.

Axeman on August 4, 2011 at 5:06 PM

Bad behavior is eventually punished; we’re getting ready to take our licks.

hillbillyjim on August 4, 2011 at 5:07 PM

Calm down folks. November 2012 is right around the corner. We’ll fix everything then. Calm down. Move along.

WINNING THE FUTURE!

j_galt on August 4, 2011 at 5:07 PM

“The original gains were never real in the first place. They were lies; there was no real recovery. There was no ability to finance what we were doing economically. We simply charged up more and more debt and pumped the stock market from 666 [on the Standard and Poor 500 index] to 1370 but the economic activity necessary to support that doubling didn’t exist.”

Emperor Norton on August 4, 2011 at 4:47 PM

I was just listening to Rick Santelli on WLS, and he said the same thing. He said this is a “correction” and not to panic, but it may get worse.

Knucklehead on August 4, 2011 at 5:08 PM

This makes no sense. No one said the deal was going to help the economy. Things A) Continue to suck or B) Suck faster and go into crisis mode.

swamp_yankee on August 4, 2011 at 4:59 PM

Eh, guess what? The debt deal passed, and look-ee here: We’re in crisis mode.

And sorry, blaming it on the European markets won’t help. Look at comparative 10-day graphs of DOW Jones and the major Euro indices. Which index led the way into this abmysmal decline? Hint: It wasn’t Europe.
And when did the decline begin: Immediately after Boehner, Reid & Obama had agreed to the framework of the “Deal”.

I could literally link to dozen of opinion pieces by the usual GOP establishment hacks stating we had to pass the deal to avoid a “market panic”. And here we are, with a market panic.

You guys are pathetic.

Norwegian on August 4, 2011 at 5:09 PM

I wish I had money, I would be buying tomorrow.

Cindy Munford on August 4, 2011 at 4:28 PM

I wouldn’t be buying anything until the jobs numbers are released on Friday morning, as well as getting a better look at how the European markets ares behaving.

eanax on August 4, 2011 at 5:09 PM

You mean how is default worse than this. Well, default would have turned off the tap on 40% of federal spending instantly, at least for a few days. You may have seen a thousand-point drop instead of this.

Allahpundit on August 4, 2011 at 4:13 PM

May have seen? Or you may not have seen. Besides would you rather have this 1,000 point drop of yours all at once or a 5,000 drop over time?

Lon Chaney on August 4, 2011 at 5:13 PM

eanax on August 4, 2011 at 5:09 PM

Since I don’t have any money it doesn’t make any difference but I if I could I would still buy stock in companies that I admire and use.

Cindy Munford on August 4, 2011 at 5:13 PM

You mean how is default worse than this. Well, default would have turned off the tap on 40% of federal spending instantly, at least for a few days. You may have seen a thousand-point drop instead of this.

Allahpundit on August 4, 2011 at 4:13 PM

AP, I’m disappointed in that analysis. You are way above that…

It’s akin to saying “Hey man, sure I punched you in the face, but that guy over there might have drop-kicked ya. Now that punch don’t hurt so bad eh.”

Pattosensei on August 4, 2011 at 5:14 PM

I wish I had money, I would be buying tomorrow.

Cindy Munford on August 4, 2011 at 4:28 PM

Don’t do it unless you get out as fast as you got in.

Lon Chaney on August 4, 2011 at 5:14 PM

I wish I had money, I would be buying tomorrow. I would be stuffing it into my mattress and burying it in the back yard, right after I invested in ammunition.

Cindy Munford on August 4, 2011 at 4:28 PM

No need to thank me.

:>)

hillbillyjim on August 4, 2011 at 5:15 PM

Norwegian on August 4, 2011 at 5:09 PM

Those “pathetic” guys like Allan West, Paul Ryan and Mike Pence saved the Tea Party from its own self-immolation.

I can say this to you ten times over, but you will never listen. Talking points from blunt-headed talk show is all you got.

Things were going to suck no matter what. A default absolutely would have made things worse. That’s not a question. Only a retard would deny that.

The key is that the media cant spend all week excoriating the selfish, extremist ideologues in the Tea Party.

$$$$ talks. There are a lot of non-political people, indies and mods, who would be blaming the Tea Party for this.

But the leaders took the issue off the table. People know this isnt the Tea Party, or the default.

But angry, bellowing small-minded types, prefer to be angry and small-minded and will scream at the “establishment” because that’s all they got.

swamp_yankee on August 4, 2011 at 5:17 PM

Somewhere there’s a huge fan with a gigantic steaming pile flying right toward it.

Duck.

hillbillyjim on August 4, 2011 at 5:18 PM

This country would be in better shape if it were being run by the 3 Stooges, Marx Brothers, Abbott & Costello and the Keystone Cops rather than this bunch of morons.

PJ Emeritus on August 4, 2011 at 5:21 PM

I have a question for y’all that dabble in the market. Today, Glenn Beck said that to pay attention to the Dow is a waste of time because the ONLY company that comprises the Dow now is GE. He also said that the one to pay attention to is the S&P’. What say y’all about this? As I said, I don’t dabble in the market.

sicoit on August 4, 2011 at 5:22 PM

Well as my pappy always used to say, “You can’t argue with success”. Thank you responsible Republicans and wise latinas, I mean wise Democrats, for saving Americans in all 57 states and our 401k’s and IRA’s from those tea terrohobbits who were trying to take hostages.

Lon Chaney on August 4, 2011 at 5:22 PM

Everybody remember that scene in Bill & Ted’s Bogus Journey where they fall down the hole to hell and they’re screaming while they’re falling and after several minutes of screaming, they stop, look at each other, and then continue screaming and falling?

Yeah…it’s like that.

tlclark on August 4, 2011 at 5:22 PM

This country would be in better shape if it were being run by the 3 Stooges, Marx Brothers, Abbott & Costello and the Keystone Cops rather than this bunch of morons.

PJ Emeritus on August 4, 2011 at 5:21 PM

It is…… :-)

sicoit on August 4, 2011 at 5:23 PM

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