Dow down almost 200 points

In under 30 min's, the dow is down almost 200 points
(-197.52) (-1.78%%)

Nasdaq
(-39.66) (-1.79%)

No a good start to the day.

I was surprised that the dow/nasdaq did not tank yesterday with all the banking issues.

Slight delayed reaction????

Not a delayed reaction - more of a "wait and see" what happened with the Fannie/Freddie situation and to analyze the Fed's plan to help IndyMac.

9 out of the 10 sectors yesterday were down, with only a slight .1% rise in retail (woo hoo stimulus checks).

Yesterday the market weathered bad news opening up 1.2% on some twisted sense of optimism that things aren't really that bad.

Today, you have GM announcing major cutbacks with talk of possible bankruptcy and it has been determined that the plan to bail out the giant lenders will fail. Is this doom and gloom? YOU BET.

I CAN NOT STRESS THIS ENOUGH. PAY ATTENTION TO YOUR BANK!!

If you see shares start to slide, start moving your money around. The FDIC and Fed can't pay everyone back!

Here are the top stories in finance today from Yahoo.

Top Stories
Dow Drops 200 as Fears About Financials Pummel Stocks- AP

Stocks are getting knocked lower again as investors grapple with escalating instability in the financial sector.

* Fed Chief Details Woes in Markets, Housing, Jobs- AP
* Analyst Warns on Wachovia Amid More Bank Worries- AP
* GM to Cut Salaried Workers, Production, Dividend- AP
* Retail sales Edge Up Slight 0.1 Percent in June- AP
* Oil Rises Above $146 a Barrel- AP
* Euro Soars to Record High of $1.60 Against Dollar- AP
* Wholesale Inflation Rises by Fastest Rate in 27 Years- AP
* J&J Profit Beats Forecast, But Drug Sales Dim- Reuters
* FDIC Chair: Deposits in Nation's Banks are Safe- AP


Not very happy today.

Originally posted by TruthWithin
* FDIC Chair: Deposits in Nation's Banks are Safe- AP

Ok, that tells me we're in big trouble and it's time to go get your money. When they start trying to assure you it's ok, it's definitely not ok.

The F.D.I.C. has $53 billion set aside to reimburse consumers for deposits lost at failed banks. IndyMac will eat up $4 billion to $8 billion of that fund, the agency estimates, and that could force it to raise more money from the banks that it insures.

Source

IndyMac will eat up between $4bn and 8bn of that $53bn.

150 more banks, $4bn each, they're a bit off on their math.

Originally posted by TruthWithin
I CAN NOT STRESS THIS ENOUGH. PAY ATTENTION TO YOUR BANK!!

what if your bank is a federal credit union. its not publicly traded. how do i watch for problems.

reply to post by JSR


Very simple. Your bank is required to give you their financial information. Check to see what their "Liquidity" is, or "cash on hand". This is their cushion and when that gets depleted - the bank is in trouble. Because your bank is a credit union, chances are you will weather this storm pretty well, just keep your eyes open.

Also, kind of a silly way to check, and this isn't always right, but check the levels of withdraw slips at the little front counter thingie with the pens and the calculators. You can sometimes notice that a lot of people are taking their money out if the stacks are low and disheveled. Also, when you're in line, take not of how many deposit slips you see vs the number of withdraw slips you see. By way of probability, there should be slightly more deposit slips.

Hope that helps.

As bad as things are (way to go GWB, what a job) the real tipping point is panic. If people start to panic or develop a herd mentaility regarding their bank deposits we're in VERY serious trouble. The one thing that is needed now is time to devise and institute plans to mitigate the damage. Any widespread run on the banks will rob whatever time is available and will initiate an all-out crash. As most people know, banks do not keep cash on hand against all their deposits. So, it is impossible --- even in the very best of times --- for any bank to hand over cash for even a majority of its depositors. That's the reality of the banking system. For them to be able to do that they would have to successfully call-in all the money they've loaned-out. Now what are the chances of that working (again, even in the very best of times).

All these people lined-up at IndyMac freaking-out to get their money would likely crap their pantaloons if IndyMac said, 'no problem, but first pay-off your mortgage, car loan and credit cards'. It works both ways. We need to chill. Despite the gravity of the situation we can't make it better but we can most assuredly make it worse.

reply to post by jtma508


Well, kinda. But where do you draw the line? What if you saw your bank in the headlines and there was a chance it could crash? What if you had spent the last 20 years saving up 80K just to see it washed away? There has to come a time when you, the little guy, has to protect him/herself. Right?

Here is an interesting article which does name some institutions of concern:

emac.blogs.foxbusiness.com...

Which banks could fail, or get bought out on weakness?...

Dow is now up to, down only 38 points.

This is up from down 200 points-calm from Bushes speech?

reply to post by mrmonsoon


If so, that only serves to prove how irrational this market realy is.

As of this post it's now down again, around 85. I don't get it, but then again, I'm not an economist. How can shrub spewing nothing other than congress sucks, monitor your gas spending, and congress sucks again make the dow go up, then 20 minutes later see it tank again?

One other thing about his little speech. When he was talking about drilling here for oil (off the continental shelf) why didn't the reporters follow up with the question of why we are not drilling on land we already have the right to drill on????? I swear this freaking media is so terrified to ask the real questions!!!

Dow is down about 16 points.

The Nasdaq is in positive territory.

Perhaps Bush saying that money will be made available to them helped.

Also,imo, the emergency speech may have had something to do with what "some" were refering to as bank runs.

Now of course, at fanny and mac.
BTW, some people finding out that their accounts were NOT fdic and they we lied to??

Now, wamu, so i read, has dropped about 30%....or more.
From what CNN showed on tv yesterday, "some" wamu branches had lines out the door.

(for reference, the mall down the street from me has a wamu/bofa/ceti/wellsfargo banks. No lines out the door, 3-4 people at atms...business as usual.(4PM Pacific Standard Time)

[edit on 7/15/2008 by mrmonsoon]

there are a lot of Fund Managers who are being forced to sell intothe downturn because many investors have said a 15%-22% loss from Jan-Jul is way too much loss.

both the mutual fund holders and the financial houses and banks etc are rotating their capital into commodities/oil/gold etc.


the 1st leg down will be top the 10,000 area, and the DOW and NYSE will hold in their windows of loss until either war with Iran commences or until after the election--
or else the 80 or so banks that the Federal Reserve has on their watch list, all go into receivership or bankrupcy with only a very few being acquired by other borderline 'insolvent' banks.

the elites are positioning for Bonuses with these convoluted merger deals that will take up to a year to really sort out..
and by then the upper execuitives will have retired theirleadership positions and sold off their options into the deep dark Liquidity Pools (Bailkal is one example of a new financial device termed a 'Dark Pool')
which is just more chicanery like the past derivitives and toxic debt paper the players schemed up on the public on both sides of the Atlantic.


tally-ho

The DOW is now in the positive. In addition...oil/gas is CRASHING. big time. Quite a pleasant surprise after seeing oil going up this morning.

It seems like a another wave going on, let see how it ends this week, remember when the dow was doing well in the first two days of the week to end under at the closing on Fridays even with all the paper money been infused to help the first wave of losing financial institutions?

Well this is another wave.

reply to post by BlueTriangle


i think oil is the reason for the rebound of the dow. why is oil dipping is my question. was it the bush speach?

Here is a very interesting web-site with an ear-to-the-ground:

bankimplode.com...