Green Room

Market Watch: Open Thread—Dow hit -430, now at -388 UPDATE: Back to -433

posted at 12:49 pm on September 22, 2011 by

The folks at CNBC are in full tilt spin mode. Some “experts” are advising to “take the cash, and get on the sidelines”. Others are trying to decide if we’re in a depression or just a double-dipper recession.

Stand by for updates………

UPDATE:  CNBC  (online) HEADLINE: 

Global Meltdown: Investors Are Dumping Nearly Everything

Commodities give up entire 2011  gains

The Fed unveiled the much anticipated “Operation Twist” program in an effort to drive down rates. The program got a lukewarm reception even though the Fed surprised markets with a plan to also buy mortgage securities.

The Fed intends to swap $400 billion in shorter dated Treasurys for the same amount in the 6-year to 30-year range. For the most part, traders worry the “twist” will do little to help the struggling economy.

“The Fed will have to go on a publicity tour over the next few weeks, coming out and stating what is the metric by which they will judge this as a success or failure,” said Kevin Ferry of Cronus Futures.

NASDAQ FLASH PRICE—-  -66.66

UPDATE (2):

A “market investor”/ guest on CNBC just said “Bernanke could have raised interest rates in small margins 2-3-4-5 times now, just had Australia, and some other European countries had done—-now he’s in a box, and the printing press is jammed.”  (paraphrased)

The guest went on to say that this is a global market with global conditions and the U.S. Federal Reserve, (and any government entity),  should get out of the business of trying to “fix the markets”.  I tend to agree with this assessment.

UPDATE (3): 11:45 am (pacific) 2:45 EST and the Dow’s now at -405  Lunchtime for us “west-coasters”.  Most of the folks at CNBC still can’t tell investors where to put their money while they’re all holding their collective breath.

 

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cripe…

cmsinaz on September 22, 2011 at 1:32 PM

my 403b is pretty much diversified and can’t really touch it for another 20 yrs…don’t know where to move it…ugh

cmsinaz on September 22, 2011 at 1:35 PM

my 403b is pretty much diversified and can’t really touch it for another 20 yrs…don’t know where to move it…ugh

cmsinaz on September 22, 2011 at 1:35 PM

Not even going to attempt to advise here cms, (zero qualifications), but long-term, we can all hope there’s a “some thing” to recover.

Rovin on September 22, 2011 at 1:50 PM

Down 479! Will it go down below 500? Way to go on fixing our economy feds, you are doing a dandy job!
L

letget on September 22, 2011 at 2:05 PM

….but just wait for the rally starting 11/8/2012!

cthulhu on September 22, 2011 at 2:13 PM

….but just wait for the rally starting 11/8/2012!

cthulhu on September 22, 2011 at 2:13 PM

If anything is left by then.

AH_C on September 22, 2011 at 2:18 PM

So, um, about this 401k rollover check sitting on my desk…I guess I can just be glad it processed last week.

TexasDan on September 22, 2011 at 2:20 PM

Fed policy

A) Move IOU from right pocket to left pocket
B) Cut hole in left pocket
C) Wait 30 years
D) Hope they forgot where we put the IOU

EastofEden on September 22, 2011 at 2:45 PM

Well, we’ll see what happens. We’ve had 400-point drops before. The difference this time, if there is one, would be the dismal numbers for the US economy and the teetering euro, which I think everyone understands has to fall sometime soon.

The Fed is acting stupidly, but I’m not convinced it’s the only or most proximate cause of market anxiety.

What we may be about to see is a major adjustment, however. There IS nothing equivalent to Western currency or markets to put one’s money into. That’s the problem. You don’t just move it out of NYSE listings and into the Chinese market as if the two investment methods are equivalent or fungible.

If the Western markets fail, everything has to change. Literally. No one can invest the same way anywhere else; without the competition of the Western markets, those of the rest of the world have no incentive to perform like them.

I don’t think things are that cataclysmic yet. A 400-point drop can be made up in a short time, and investors still may not be ready to give up and start building moats and private armies. If they’re not, they’ll be back. There’s nowhere else to go.

J.E. Dyer on September 22, 2011 at 6:29 PM

Rovin on September 22, 2011 at 1:50 PM

i know, just talkin out loud, can’t do much but just let it ride….

cmsinaz on September 22, 2011 at 6:33 PM