U.S. Stocks Tumble on Concern Bailout Won't Stop Recession

U.S. Stocks Tumble on Concern Bailout Won't Stop Recession

www.bloomberg.com

Sept. 22 (Bloomberg) -- U.S. stocks tumbled, led by banks, retailers and technology companies, as oil jumped 16 percent and investors speculated the Treasury's plan to buy toxic mortgage assets will fail to prevent a recession.

(visit the link for the full news article)

The big shots on wall street really are afraid to say the "D" word instead they are still insisting we are facing a recession.

unemployment rates continue to grow the dow lost almost 400 points on mondy the futures are holding at being up 28 points at the time of this post. I really don't think anyone in the financial sector has a grip on reality that we are already in a recession and teetering on depression

www.bloomberg.com
(visit the link for the full news article)

[edit on 9/23/2008 by Mercenary2007]

Oh..... Wallstreet, the FED. and all the Gov't FatKat's know exactly what they are doing !

WHEN CORPORATE POWER AND GOVERNMENT COMBINE IT IS CALLED FASCISM.

Yeah. ``Recession``... one of my friends work in the bank industry and he's going nuts, saying we're going in a depression for sure.

... it's gonna be long.. and worse than 1929.

Recession?
Thats a hoot, this is much worse than any recession, and for them to say we are trying to save 'from' a recession is badly mis-informed.

We simply skipped the 'recession' part and went straight into direstraits.

So what do you guys think the markets will do tomorrow? Think we'll end up seeing another 370 point drop?

I think we'll see at least another 370 point drop but wouldn't be surprised if we see 400 or 500.

I agree we skipped the recession and are now in a depression. Look at how the markets reacted monday
dow down 372 points
S&P 500 down 47.99 points
nasdaq down 94.92 points
Russell 2000 down 33.30
S&P/TSX Comp down 274.92
Mexico Bolsa down -569.12
Brazil Bovespa down -1,514.80

i'm no economist by any means but even i can see the writing on the wall.

Everyone on wall street is afraid to admit that this is a depression that's going to make the great depression look like a recession. These bailouts are not going to help either they are just going to put off whats coming.

Futures from bloomberg

MEX BOLSA -655.00
BOVESPA -468.00

Not looking too good there.

dow futures have been mixed so far tonight but they have been up the were at 28 then down to 25 now back up to 29 i can only imagine what happens after the opening bell

I haven't heard a single economist say that they think that the bailout will get us back on our feet. It seems that most are just trying not to say anything. The ones that are talking don't want to mention the details of what is going on and only say how close we were to total meltdown and how bad it could have been if the bailout didn't happen. Not really saying what they think will happen next.

I think we all know what is going to happen next and it isn't going to be pretty. It still cracks me up that they refuse to admit that we could possibly be in a recession. An illustration that our economy is built on a foundation of lies and any bits of truth would only serve to topple it.

I agree Karl,
No ones to sure exactly how the masses will react to this, no ones going to want to stick their neck out to far, until others do.
I feel a deep rotting fear that this just may well be it.. and many people have that same fear.
The FED cannot issue many more billion dollar packages.
Not only are they becoming broke, but it just adds more to the 11.3trillion debt ceiling, and lets face it.. if after all this money being thrown at the problem couldnt fix it, whats one more round going to help?


The week that just past was a week banks KNEW was coming.

Why else did the banks that survive, quickly seek merger deals with those who remained?

The floor fell out from beneath them last week, and some managed to cling on while others fell.

they are going to slip and fall.. its inevitable.

This "bail out" isn't about averting a financial disaster. It is about consolidating power in the hands of the Fed and Treasury in the wake of the coming disaster. Just look at what happened to gold, oil and the dollar yesterday as the details of the "bail out" plan unfolded. Gold and oil jumped dramatically, and the dollar tanked, along with the broader market. That trend will only continue and escalate. Paulson and Bernanke know this that's why they are pressing for quick passage of the "bail out". They are even sending Cheney in to browbeat the Hill.

Cheney, Paulson Head to Hill to Soothe Lawmakers on Bailout

The White House is dispatching Vice President Dick Cheney to Capitol Hill Tuesday morning to help shore up support for the financial bailout of Wall Street.

Elsewhere in Congress, Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke, the architects of the bailout, will testify before the Senate Banking Committee about the rescue and its cost to taxpayers.

House conservatives are seething about the "big government" approach that they say President Bush is taking in the financial crisis. They don't like how much power it cedes to the Treasury or the price tag.

"(Cheney) is going to walk into a firing squad. I hope he brought his hunting rifle," an aide to one House conservative told FOX News.

source

The script is tried and true: use a manufactured crisis to rush through legislation that consolidates power in the hands of the executive branch.

[edit on 23-9-2008 by Icarus Rising]

This bailout is going to make a recession a depression. Its going to increase inflation and keep wages stagnate and between the two along with high oil even the "good" loans will start going bad because people just will not be able to keep up.

We are in for a long nasty ride.