American Stocks Expected To Be Hit Hard Once Again!

NEW YORK (CNNMoney.com) -- Stocks were mixed Monday morning, with investors edgy amid a thrashing in global markets, following the worst week on Wall Street in four years

Apparently the worlds markets may not be able to hold strong for to much longer. China's stock has declined another 1.8 percent today, but that is nothing compared to Japan, Australia, some European markets as well, which have all lost from 3-4% of their value.

As of right now the DJA is actually up 50 points, odd seeing almost every major market is currently down, and those that have closed have closed with big losses.

CNN MONEY

NEW YORK (CNNMoney.com) -- After surviving the worst week on Wall Street in nearly four years, investors return to face what could very well be another endurance test. Get ready.

With no meaningful earnings reports due and most of the relevant economic reports not expected until Friday, the week ahead is likely to bring more choppiness and few anchors....

Stocks slumped across the board last week, as a massive selloff in Chinese markets on Tuesday caused a domino effect across a variety of world markets, including the United States

Troubled world economy..

China got the ball rolling, but it wasn't just the international markets that spooked U.S. investors last week. It was also a surprisingly weak read on durable goods orders and a run-up in a key inflation indicator.

Comments from former Federal Reserve Chairman Alan Greenspan that the economy could be heading for a recession by the end of the year didn't help.

There was also a plunge in the dollar as global traders rushed to close out carry trades, or bets on riskier currencies financed by borrowing in the currencies of countries with low interest rates, like Japan.

Is this the begining of a downward trend? A "Bear" market in the future? The economy is currently pretty much the only good thing going for the President, without the economy Bush will loose further support making him truly a lame duck President. Of course, we normal citizens will also feels the pinch with a downward economy, inflation rising, companies profits shrinking, raises will come fewer then they even are now - which is the lowest since before the 1980's economic problems -

In the time it took to write this (15 mins maybe?) the S&P and the NASDAQ are both down now, and the DOW up only 24 points now. Keep an eye on the markets this week.

YAHOO MONEY
Another CNN Money article









Here is a few real-time tickers for everyone (they should be real time il remove them later if they are not)

they need to keep the usa markets up to give confidence to the world, that is why it is barely up and others are down. they know how to keep this market going nowadays.

Originally posted by Rockpuck
Is this the begining of a downward trend?

You tell me: ATSNN single post


.

Tell me, how easy would it be for the government to buy stocks to keep their value up? When the stocks start falling, to save the economy just buy them up to make it appear the sell off is not as strong as it really is?

You mean like using the Plunge Protection Team and offshore front accounts to purchase stock index futures contracts thus forcing the underlying index to rise?

In addition to that link here is an older description of how the PPT works:

Cornered Rats and the PPT

For the past 12 years then, the PPT has been used by Washington to control the price movements of the NYSE through the buying of S&P futures as former Fed governor Heller advocated. Whenever a crisis appears especially threatening, the PPT swings into action to shore up equity prices on the exchange. The media sycophants of the establishment turn a deaf ear to such ... They are happy with such an arrangement, and being unable to grasp the long-range ramifications of such market rigging, ... The fact that eventually such rigging will destroy the integrity of the markets as free institutions of trading is for someone in the future to worry about.

Since the PPT's operations and existence must always be kept secret, then its funding must also be orchestrated in clandestine manner. It must be done offshore. And this is where the funding for the PPT undoubtedly comes from. ... The Fed launders billions of dollars into an offshore bank account for say XYZ Investment Corp (which is established as a front for the PPT). JP Morgan and Goldman Sachs are then designated as the brokers for XYZ Corp to act as the funnels to bring the "new money" into the economy via the PPT's "market stabilization activities." Thus, there are unlimited funds for use to buy S&P futures whenever the markets look to be in jeopardy. ...

...the PPT merely lights the fire by intervening into a dangerous market sell-off with massive purchases of S&P longs to check the fall. This ignites short covering, which then brings in the hedge funds and other institutional money to try and catch the train before it leaves the station. A large rally ensues, and the PPT then sells its long positions into the hedge fund and institutional buying. In this way, they never go "net long" stocks. They do not accumulate inventory. Thus, they do not actually add their Fed created "new money" to the system. So their actions are not inflationary.

.

[edit on 3/5/2007 by Gools]

Keep an eye on the sub prime mortgage lenders....New Century Financial one of the biggest sub prime lenders was down 69% today. Many more were also down double digits percentage wise.



I think this is the proverbial cannery in the coal mine for the economy and housing. The sub-prime lenders going under is only a prelude to a severe collapse in the over all housing market.

There are going to be many thousands of more homes from foreclosure in the coming months on the market. This in tern will crash housing prices.

As housing goes so goes the economy.

Gools..... that is the most horrific thing I have heard today honestly.. The ramifications of medeling with the market like that could be extreme, and makes me wonder since 9/11 exactly how much medeling has been done. The market fell after 9/11 but still relitively good compared to the attack.. I always said no nation on Earth would have sustained such an attack, and maybe we didnt and the Gov covertly saved it. From my understanding of this program they use.. while it is obvious the economy is no where near as good as it was in the 90's - on paper and in the market it is far better.. but those who work know better.

Etshrtsir - the housing market has been on the slide for several months, no official "burst" of the housing bubble. When it does (mayb if it does?) do you think the effects will be like the effects of the "dot com" burst in 2000?

I agree with Rockpuck, the market seems extremely inflated; while good for my stocks and mutual funds now, but, then I worry what will happen when other people figure out what's going on.

I agree with Rockpuck, the market seems extremely inflated; while good for my stocks and mutual funds now, but, then I worry what will happen when other people figure out what's going on.

I would think though eventually the American buying power will dry out (lowest savings - actually negative right now - since the Great Depression, of course they didnt have credit cards then..) the world economy will slow, and it won't matter how much the gov can buy back to save the stocks, the American economy will slow greatly.. maybe a crash maybe not, it has been an awful long time sine there has been a crash. The stocks may have just decended from all time highs, but the actual economy (the people) don't seem that they are at their all time best.

Etshrtsir - the housing market has been on the slide for several months, no official "burst" of the housing bubble. When it does (mayb if it does?) do you think the effects will be like the effects of the "dot com" burst in 2000?

We have only begun to see the beginning of the housing collapse.

The value of the hosing market is many times greater than that of the dot bomb stocks in 2000.

The implosion of the sub prime lenders is going to cause a server liquidity crises around the world.

The low interest rates and lack credit standards for borrowing fueled the meteoric rise in housing up till last year.

This was all by design by the federal reserve (the fed) to help ease the pain and loss of the wealth effect caused by the dot bomb crash.

In other words the fed just transferred the bubble from on asset class to another.

Unless the fed has another asset class to transfer the bubble to the game is over....and for other reason that would be to lengthy to get into right now I do think the game is over as far levitating and transferring the bubble to other asset classes.

Its not only the american markets that are all selling off its been a global market melt down...just look at japan and the other asian markets the last week.

This is all a sign of a global liquidity crises and the massive speculative derivative trades unwinding and no one knows how far down the rabbit hole it will go.


[edit on 5-3-2007 by etshrtslr]

This certainly is odd...
I know for a fact that the NASDAQ and DOW JONES' indexes aren't corresponding with the GDP or National Banks, why? Because today in the Foreign Exchange markets the USD didn't do so badly.
The US dollar made quite the increase today on the world markets for Forex, making 3 rather large moves today against the Euro. Of which I didn't benefit from because of all the bad news lately, I didn't bother touching it.
But I watched it all day today as the EUR lost to the USD. Man, I should have bought into that pair.

Anyhow, funny how the DOW and NASDAQ suffer horribly, while the countries currency as a whole did so well.

Oh well, this is why I stay out of stocks, and remain in Forex.

Originally posted by Gools
You mean like using the Plunge Protection Team and offshore front accounts to purchase stock index futures contracts thus forcing the underlying index to rise?

While we're at it, lets name the culprits. The president's working group, aka - PPT: Ben Bernanke, Chris Cox, Reuben Jeffrey, and Hank Paulson.

In the military, helicopters are sometimes referred to as; "sophisticated flying machines...looking for a place to crash". Just substitute the word 'money', for the word 'flying'...and you end up with an appropriate metaphor for Bernanke's Dollar drop strategy, as well as it's inevitable outcome.

Though it was later overpowered, that sudden pop in the DOW just after 10:00 am yesterday had PPT written all over it.

Peace &
Good Fortune
OBE1

Lets just say, if you want a nice new shore house (Wait till 2009) they should be down 25-40%! Keep that money under the mattress till then ;P

My opinion that the dollar keeps its value...is the fact that other countrys are buying them up!..as support...
I guess that the Dutch banks have moore Dollars then Euro's in there vaults.....
Holland's economy had a boost last years..most of the money they made went straight to the USA.....
this "air-bubble economy"will plopp sooner ore later....with all the effects....

Originally posted by Here Now
Lets just say, if you want a nice new shore house (Wait till 2009) they should be down 25-40%! Keep that money under the mattress till then ;P

Eh I would move closer to 2008 when the housing market reaches it's bottem point. I don't think it will bottem out this year, but it definately will before 2009. You can expect housing in 2008 to be down anywhere from 20-40% between now and sometime in 2008. This possible recession could last 3-4 quaters.

This needs to be seen in the context of the last 4 years plus of growth in not only the US but global stock markets. Certainly in the UK, and yes this does have an impact of global stock markets, we are coming to the end of the tax year and fund managers are consolidating their positions.

If the falls continue for the next few weeks/months, then we may see a recession.

Stocks are down again, I swear its been a while since iv seen the stock market behaving like a roller coaster in this way.. Down big time, then up big time.. world markets tumble and we go down just a hair, then shoot up 100+ points the next day just to be down again the next.

More financial news is expected today in regards to oil... the unstable market could be at the verge of an official downward trend.

PS:

The 3 tickers at the main post are update once every 5 mins I believe, they represent the current situation, they are not old outdated graphs, that is todays.

[edit on 3/7/2007 by Rockpuck]

lot of up and down movement

unsure people waiting to react

reminds me of this, maybe a time for smart people to lose there money

www.securitytraders.com...

i really enjoy the volitility...

there's just begun a TV contest for a Million Dollar Portfolio,
and i've entered to see if my 11 week outlook is any better
than the Brokers & Wall Street Pros & Traders who will be
competitors. ------cnbc.com/milliondollar/main.do

lately, i've been trying to make more contributions to my Gold fund,
as the larger money managers have had to sell off Gold holdings to
cover their futures & shorts in the wider market...
A buying opportunity!
thanks power brokers, for the unexpected bonus!

[edit on 7-3-2007 by St Udio]