Tuesday, February 27, 2007

How Now Down Dow?

posted by Bill Arnett @ 4:00 PM Permalink

I've been sitting here listening with amusement to the panic being caused by a dramatic "Black Friday" type sell-off of stocks around the world and particularly the Dow-Jones.

According to HuffPost via AP comes this:
The Dow Jones industrial average fell more than 500 points today before gaining some of it back. The Dow dropped 546.02, or 4.3 percent, to 12,086.06 before recovering some ground. It was down 360.42, or 2.85 percent, at 12,271.84 with about a half hour of trading left.

The broader Standard & Poor's 500 index was down 42.11, or 2.91 percent, at 1,407.26, and the Nasdaq composite index was off 81.34, or 3.25 percent, at 2,423.18, after being down more than 100.

The U.S. joined a global market plunge sparked by growing concerns that the U.S. and Chinese economies are cooling and that equities prices have become overinflated.

At last the chickens are coming home to roost: "…growing concerns that the U.S. and Chinese economies are cooling and that equities prices have become overinflated.…"

Every sentient creature on Earth knows that America is too broke to even pay attention, and that the Communist Chinese, our bankers, have been fronting us $2-billion a day buying U.S. Treasury notes.

The Chinese market apparently slid down by 9%, housing sales have slowed almost to a halt in the U.S., and economists, as is normal with the bush maladministration, anticipate significantly lowering the estimate of GDP for the fourth quarter.

Obviously someone got ahead of the curve and figured from the beginning that bush's economic numbers would be revised downward and then figured that the revision would be a much lower number.

It's amazing to me that every economic number bush ever releases is later revised to reflect the truth, which somehow is always worse than what was reported by bush.

Looks like the markets have decided that, "They won't be fooled again."


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