Dow Plunges 400 Points As Fed Stokes Economic Fears

by Guest Thu Sep 22, 2011 2:32 pm

Market sentiment has turned decidedly negative since the Fed statement on Wednesday. Though the central bank detailed additional stimulus measures to help push down long-term rates, investors worried the latest plan would have little effect on lending and that there appeared to be few solutions to sluggish worldwide demand.

"The Fed scared the daylights out of people with the term 'significant,'" said Jack de Gan, chief investment officer at Harbor Advisory Corp in Portsmouth, New Hampshire.

"I was surprised ... they're very careful about the adjectives that they pick and that was a very, very strong one."

The Dow Jones industrial average slid 421.93 points, or 3.79 percent, at 10,702.91. The Standard & Poor's 500 Index or 3.22 percent, at 2,456.40 took off 40.29 points, or 3.45 percent, at 1,126.47. The Nasdaq Composite Index tumbled 81.79 points, or 3.22 percent, at 2,456.40.

http://www.huffingtonpost.com/2011/09/22/dow-400-points_n_976095.html

by mistermunster Thu Sep 22, 2011 3:12 pm

Now with a Gov shutdown looming, this is insane.

by Guest Thu Sep 22, 2011 3:18 pm

mistermunster wrote:Now with a Gov shutdown looming, this is insane.

Can it get much worse? Oh, yes it can, the House is not in session next week - their "District Work Session"! No more Town Halls with constituents unless they pay to get in, someone may ask a question about the economy they can't, or won't answer. Evil or Very Mad

by truth Thu Sep 22, 2011 6:14 pm

I have always felt that the Fed can do a much better job of slowing down an overheated economy than stimulating an economy that is moving dangerously downward. Interest rates are already near rock bottom, but there is still too much public fear for necessary demand to grow. I think the Fed ran out of ammunition long ago.

I have also always felt that there is a major psychological component involved in recessions as well as in booms. In that regard, I think that it is not been helpful to have public confidence eroded by talk of government shut downs, government "bankruptcy", "failed" stimulus programs, etc.

by mistermunster Thu Sep 22, 2011 8:49 pm

truth wrote:
I have also always felt that there is a major psychological component involved in recessions as well as in booms. In that regard, I think that it is not been helpful to have public confidence eroded by talk of government shut downs, government "bankruptcy", "failed" stimulus programs, etc.

and add DEBT crisis STALEMATE to the Mix and the GOPers have a LARGE clip of FEAR to fire at the little masses to PANIC us all Mad

.

by JoanB Thu Sep 22, 2011 8:59 pm

Didn't the Dow do this just a month ago and then climb back up over 800 points? I'm not saying it's not bad, but it seems like with what's going on in Europe, I don't think I believe anyone who says they know where we're headed next, for good or for bad.

And the thing I've noticed about pretty much everything in my life: you can always count on things working according to certain rules. Until they don't.

I'm not watching any more.

Yeah, right. Suspect