Dow Jones goin Like Cedar Point ... wanna Ride ?

[BrownIndian]

US stockmarkets have plunged in New York as concerns about high levels of European government debt continued to shake investor confidence.

 

Stocks fell steeply on fears that Greece's debt problems will spread and halt the global economic recovery.

 

At one point the Dow Jones was down by more than 9%, its worst fall since 1987, before starting to recover.

 

By 340pm in New York the Dow Jones was down 3.47%, the S&P down 3.45%, and Nasdaq 3.55%.

 

The tech-based Nasdaq index said it was scrutinising trades made between 2pm and 3pm.

 

As well as shares falling, bond prices increased and the dollar fell by 6% against the yen.

 

Oil prices also fell, to levels not seen since February, with benchmark crude losing $2.86 to settle at $77.11 a barrel in New York.

'Panic sell'

 

There are fears that banks which are still recovering from the 2008 global banking crisis are exposed to Greek debt.

Continue reading the main story Dollar bills Check latest market data

 

Investors were disappointed that earlier today the European Central Bank did not take fresh measures, such as buying Greek bonds, to help stop the Greek debt crisis.

 

"Right now you just have a panic sell," said Keith Springer, president of Capital Financial Advisory Services in Sacramento, California.

 

"It could be a long-term negative for stock market because it could mean the long-term high is in place. It's very likely we've seen the highs for this cycle."

 

However, others said the volatility could be down to electronic trading issues rather than worries about Greece.

'Machines took over'

 

"This is an electronic market where bids can be cancelled at the flick of a button, and everyone cancelled at the same time," said Joe Saluzzi, of Themis Trading in New Jersey.

 

"We should be down big today, but not 1,000 points. This is an equity market structure issue, there's no major problem going on."

 

Computer trading is thought to have cranked up the losses, as programmes designed to sell stocks at a specified level came into action when the market started falling.

 

"I think the machines just took over," said Charlie Smith, chief investment officer at Fort Pitt Capital Group.

 

"There's not a lot of human interaction. We've known that automated trading can run away from you, and I think that's what we saw happen today."

[BrownIndian]

http://news.bbc.co.uk/2/hi/business/10101581.stm

 

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De Ja VOOOOOOOOOOOOOoooooooooooooooooooooooooooooooooooooooooo

[DieHardBrownsFan]

Guess we will have to bail out the banks and oil companies.

[calfoxwc]

I don't think we have any going into further debt left

 

to do any more bailouts.

 

Not good. Really not good.

[The Gipper]

Here is a graph:

 

 

People tend to get a little crazy over the stock market.

A little slippage here and there? Sure. But it seems to be a fairly steady rise over the last 10 months.

[The Gipper]

And check out this graph if it can all fit on here:

 

 

For a better view see the link:

 

http://stockcharts.com/charts/historical/djia1900.html

[BrownIndian]

The recession in Greece (now in Spain and Portugal and spreading) is said to be the cause of this. Many want a bailout ... Many dont ! ! Unlike the other bailouts this could be a case where me may never get the whole money back (the guarantee of not getting it is much higher in this case)

 

So if greece and fellow countries in Europe go down then again we get weakened as they are our trading partners ...

[The Gipper]

The recession in Greece (now in Spain and Portugal and spreading) is said to be the cause of this. Many want a bailout ... Many dont ! ! Unlike the other bailouts this could be a case where me may never get the whole money back (the guarantee of not getting it is much higher in this case)

 

So if greece and fellow countries in Europe go down then again we get weakened as they are our trading partners ...

 

Well, take these numbers in mind: the record for the DJA was 13,930 in 2007 just before the housing crash. At the depth of that crash it went down to 7062 in about January 2009. It is right now at 10,785. It has gained back more than half what it lost. So, I think the trend is fairly good.