MeanWhile On WallStreet or Moody Moodys

In midst of all the commotion from the movie theater shooting, I decided to pay my respects and quickly turn around to see what was going on behind everyone as they were watching the calamity.

A mere handful of days after the theater event, which apparently had impervious timing, I've discovered the following:

NEW YORK (CNNMoney) -- U.S. stocks declined sharply Tuesday as a weak reading on U.S. manufacturing, a dull batch of earnings reports and ongoing worries about Europe dampened the mood on Wall Street.

The Dow Jones industrial average (INDU) dropped 170 points, or 1.3%. Cisco (CSCO, Fortune 500) was the biggest laggard on the Dow, a day after the network equipment maker said it planned to cut 1,300 jobs, or about 2% of its global workforce. Shares of Cisco were down nearly 6% in mid-afternoon trading.

Source CNN

Dow Jones Industrial dropping like a rock as one of the biggest networking conglomerates cut 1.3 thousand jobs and take a massive 6% loss in a single day. This is suggested in the above article that worries over Europe are to blame for gloomy investing futures.

Let us take a closer look at what's going on in Europe:

NEW YORK (CNNMoney) -- Moody's cut the outlook on Germany's prized Aaa credit rating from "stable" to "negative" Monday. The move could precede a full-blown downgrade, which would mark a grim turn for a country long thought of as a bulwark of financial stability in Europe.

The rating agency also revised the outlooks on the Aaa ratings of the Netherlands and Luxembourg from "stable" to negative." Finland maintained its Aaa rating and stable outlook.

Source CNN

Moodys has downgraded Germany's credit rating from stable to negative, in what was assumed a safe investing, Germany's downgrade could have a ripple effect across Europe, as we are already seeing in the Netherlands and Luxemburg.

But wait, there's more:

NEW YORK (CNNMoney) -- Greece is back in the spotlight this week, as the government's official creditors return to Athens amid renewed speculation about the nation exiting the eurozone.

Greece is facing a €3.1 billion bond redemption on Aug. 20.

It is unclear how Greece will make that payment, although some analysts say the government could cover its financing needs by selling short-term bills.

Source CNN

Greece facing paying back 1.3 billion euros when the entire planet is well aware they have literally no money left. I don't think Greece could scrape together that debt up with short-selling. With August 20th less than a month away now, and the speculation on Greece leaving the Euro-zone I can see this as kindling for a global economic fire.

To recap: Dow Jones Industrial begins to plummet as a result of cut jobs and a shaky Europe causing a bad investing environment. In Europe we see Germany, The Netherlands, and Luxemburg receiving downgrades from Moody's credit rating as well as Greece facing total economic obliteration come the end of August.

It seems to me that while everyone is distracted with the movie theater murders, there are huge events happening right behind us.

Classic misdirection, as a note RP audit the fed bill is being voted on now as well.

reply to post by benrl


If you can supply the thread with a link to the Audit the Fed information that would be much obliged. I, personally, would like to keep up to date with what is going on with that.

reply to post by Vortiki


Ron Pauls Audit the fed hr 459

Its going on RIGHT now...

so the lead up to the vote was drowned out by the Media hype of the shooting...

reply to post by benrl



They keep the markets as unpredictable as they can otherwise we would all be millionaires. The US dollar broke above the recent double top near 84 today that probably did some psychological damage as well. Technically the next target for the US dollar could be in a converging pattern with a top near 87. Too many people talking about a domino scenario in Europe with Italy and Ireland following Spain into the bailout mess so maybe that won't happen?

If more countries do become involved we might see the US dollar index break the 6 year ceiling above 90. Before that happened though Asia would probably get involved and launch their currencies into orbit especially if the weak numbers continue in the US.

Wow, 1.3 thousand laid off by cisco. 1.3.THOUSAND!!!!

wait.... what? that's only 1300. Sure sounds like a lot more if you aren't really paying attention...

Is CNN trying to scare people?