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| US stocks plunge on nationalization fears |
| 2009-02-21 |
| US stocks have plunged deeper into six-year lows on rumors of bank nationalization which the Obama administration moved to quash. On Friday, Dow Jones Industrial Average fell 100.28 points (1.34 percent) to 7,365.67 after a sharp sell-off Thursday. The tech-dominated Nasdaq dropped 1.59 points (0.11 percent) to 1,441.23 and the broad-market Standard & Poor's 500 index shed 8.89 points (1.14 percent) to 770.05. The stock market was down more than three percent before rallying in late trading as fears for the banking system eased. Citigroup was down 22.31 percent to 1.95 dollars and Bank of America fell by 3.56 percent to 3.79 dollars. JPMorgan Chase lost 3.40 percent to 19.90 dollars and Wells Fargo down 9.16 percent to 10.91 dollars. General Electric, which recently reported lower profit, fell 6.76 percent to 9.38 dollars. The yield on the 10-year US Treasury bond fell to 2.772 percent from 2.857 percent on Thursday while that on the 30-year bond dropped to 3.565 percent from 3.688 percent. Bond yields and prices move in opposite directions. |
| Posted by:Fred |
| #5 Obama could care less about stocks. Stocks are for evil big businesses and the evil "top 5% of wealthy Americans." He's "all in" with gummit bonds and borrowing, borrowing, borrowing. When he discovers, and he may already have, that neither China or Jaman want anymore of his bond action, banks will be "all in" with gummit bonds as well. That won't be enough however. The next target is what's left of our IRA's and 401k's. Got to protect the folks you know, they've suffered huge losses. I believe the stock market is finished for the forseeable future. Hang on everyone! |
| Posted by: Besoeker 2009-02-21 07:39 |
| #4 You know, I always had the idea that, in the market system, when a company makes mistakes and becomes insolvent, BOOM! it becomes owned by it's creditors who sell its remaining assets off. How was I so wrong? Now when a company makes mistakes, BOOM! taxpayers money floods in to keep that loss in the economy. You know, I always had the idea that the government regulates the currency for price stability, so when you have a problem with too much credit in the economy, you simply lower the amount of credit! How was I so wrong? When you have a problem with too much credit in the economy you simply fix it by making taxpayers pick up any fall in borrowing, even if the money won't be paid back! |
| Posted by: Bright Pebbles the flatulent 2009-02-21 05:06 |
| #3 Not only that, but a lack of toilet paper would be compensated by production of solar powered locomotivs. |
| Posted by: Spike Uniter 2009-02-21 01:47 |
| #2 Don't you worry, not only will Obama nationalize the banks, but he has a five year plan to increase tractor production, too! |
| Posted by: DMFD 2009-02-21 01:42 |
| #1 The cause was either nationalization fears, or the spreading realization that the biggest banks are insolvent. Stay tuned. |
| Posted by: Anguper Hupomosing9418 2009-02-21 01:13 |