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Market recap: Stocks crashed as investors resumed post-debt-deal selling and left equities en...

Market recap: Stocks crashed as investors resumed post-debt-deal selling and left equities en masse. Yesterday's streak-breaker is just a blip now, as the Dow fell 512 points for its worst day since 2008, and its 9th drop in 10 sessions. Even staples fell 3.3%, oil sank nearly 6%, and after early strength, gold (-0.4%) lost its bid this time. Money did flow into Treasurys, and the 10-year yield free-fell 20 bp to 2.42%.
Comments (34)
  • labas112
    , contributor
    Comments (295) | Send Message
     
    Talk about an a$$ beating
    4 Aug 2011, 04:13 PM Reply Like
  • Mad_Max_A_Million
    , contributor
    Comments (1175) | Send Message
     
    They blame this on Europe. But U.S. is not in much better shape. Planned cuts in government will slap down U.S. employment long before it creates new jobs in the private sector. Debt is wired to continue increasing ad infinitum. QE3 talk is in the air. Even for a D and G guy, the outlook seems worse than predicted.
    4 Aug 2011, 04:17 PM Reply Like
  • Michael A. Gayed, CFA
    , contributor
    Comments (1340) | Send Message
     
    Been writing about a Summer Crash since June 8th here on SeekingAlpha. Check my articles.
    4 Aug 2011, 04:19 PM Reply Like
  • PVizzle
    , contributor
    Comments (741) | Send Message
     
    No
    4 Aug 2011, 05:29 PM Reply Like
  • PVizzle
    , contributor
    Comments (741) | Send Message
     
    I did and you were right. Cash money! *High five to a fellow deflationist*
    4 Aug 2011, 05:31 PM Reply Like
  • J 457
    , contributor
    Comments (938) | Send Message
     
    I'm afraid there is more to come tomorrow and even Monday.

     

    Wait until the 401k redemption that were placed today settle tomorrow at the close. Many people are not going to allow the same scenario in 2008-09 happen to them this time in 2011. They won't sit around and wait, they've learned not to make that mistake again. Many still have a lot of $$ in stocks and have recovered some losses since the 2008-09 crash. They will want to preserve those funds even if they put the $$ in T-Bills not paying any yield.

     

    More easing to come as well. Get into PM before they reverse direction and make new highs later this year.
    4 Aug 2011, 04:34 PM Reply Like
  • American in Paris
    , contributor
    Comments (5504) | Send Message
     
    This is what you get when cut the deficit prematurely. The economy slowed in the second quarter due to the state and local cuts and now our dear Republicans are forcing the same scenario to take place at the national level.

     

    The mistakes of 1937 are repeated ad finitum.
    4 Aug 2011, 04:43 PM Reply Like
  • Bozerdog
    , contributor
    Comments (464) | Send Message
     
    Those who cannot remember the past are doomed to repeat it...George Santayana
    4 Aug 2011, 04:54 PM Reply Like
  • varan
    , contributor
    Comments (3321) | Send Message
     
    One hopes that this is the end of anti-Keynesianism.

     

    One would dare to hope this to be the end of the Republican know-nothingism as well, but that is too much to ask. The Republicans will continue to wash their hands off this disaster that they have caused by their insistence on spending cuts at the time of a recession, and the man in the White House will continue to bask in the glory (that exists in his head alone) arising from his spirit of compromise for its own sake.

     

    We are all screwed.
    4 Aug 2011, 05:06 PM Reply Like
  • dreadlordnaf
    , contributor
    Comments (481) | Send Message
     
    Have you actually looked at the debt ceiling deal? There are no real cuts.
    4 Aug 2011, 05:09 PM Reply Like
  • David R.(Canada)
    , contributor
    Comments (80) | Send Message
     
    "Those that cannot remember the past are condemned to fulfill it." is the correct quote, which has a subtly different meaning than your misquote.
    4 Aug 2011, 05:10 PM Reply Like
  • Dana Blankenhorn
    , contributor
    Comments (5674) | Send Message
     
    "Madame, prices will fluctuate." Paul Volcker
    4 Aug 2011, 05:20 PM Reply Like
  • David R.(Canada)
    , contributor
    Comments (80) | Send Message
     
    As compared with the great depression we are in 1932; not 1937.
    The next leg down has been predicted for at least a year and has nothing to do with any purported deficit reduction.
    You don't get to blame this on the Tea-Partiers. There have been idiots in Washington causing all this since Eisenhower left office. The Tea-Party is doing what should have been done decades ago.

     

    The Democrats have consistently made bad economic decisions for the last 21/2 yrs. actually making it worse.
    If you took the time and trouble to actually look at the debt-ceiling decision, you'd realize there isn't any reduction in spending at all so far, and there isn't likely to be in the next ten years either.
    4 Aug 2011, 05:20 PM Reply Like
  • varan
    , contributor
    Comments (3321) | Send Message
     
    No substantial cuts in the near future would be a more accurate characterization.

     

    However, the drama played out in DC by the Republican queens'. insistence that the spending be cut took precious attention away from the solution of the real problem: jobs.
    4 Aug 2011, 05:22 PM Reply Like
  • varan
    , contributor
    Comments (3321) | Send Message
     
    Easy for a Canadian to say, with guaranteed health care and retirement and other goodies.

     

    What decisions of the Dems are talking about? The economy would have been much worse off without the stimulus, the tea baggers' protestations notwithstanding.
    4 Aug 2011, 05:25 PM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
     
    Wait til you get a load of the Super Committee half of it made up of Grover Norquist NOT SO FISCALLY RESPONSIBLE CONSERVATIVES.

     

    Can't wait to see what they come up with its sure to be a jewel.

     

    How the F is Grover Norquist anyhow.
    4 Aug 2011, 05:31 PM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
     
    Worse?

     

    We'd all be standing in soup lines.

     

    Republican Teabaggers are still trying to organize those soup lines.
    4 Aug 2011, 05:34 PM Reply Like
  • Bozerdog
    , contributor
    Comments (464) | Send Message
     
    well doomed and condemned are synonyms, but thanks anyway
    4 Aug 2011, 05:41 PM Reply Like
  • Buckoux
    , contributor
    Comments (5590) | Send Message
     
    "The economy would have been much worse off without the stimulus,..."

     

    You mean the "stimulus" given to state and local union public employee jobs, i.e. street resurfacing. The private sector got the finger. This president should get the boot!
    4 Aug 2011, 05:47 PM Reply Like
  • varan
    , contributor
    Comments (3321) | Send Message
     
    What are you talking about? As if GM bailout never happened.

     

    Actually we would have been better off if the public employment had not dropped off so sharply. But all the Repub governors had the agenda of shutting down the unions even if it meant economic disaster for their states.
    4 Aug 2011, 06:05 PM Reply Like
  • Bouchart
    , contributor
    Comments (726) | Send Message
     
    Monngie, what's the practical difference between soup lines and 45 million food stamp recipients?
    4 Aug 2011, 07:14 PM Reply Like
  • warrenrial
    , contributor
    Comments (558) | Send Message
     
    Vote out all democrats.
    4 Aug 2011, 09:50 PM Reply Like
  • Dana Blankenhorn
    , contributor
    Comments (5674) | Send Message
     
    Andrew Mellon will not save you. And I have yet to see any solution from any Republican other than Mellonism. Look it up.
    12 Aug 2011, 03:30 PM Reply Like
  • Dana Blankenhorn
    , contributor
    Comments (5674) | Send Message
     
    There will be buying opportunities.
    4 Aug 2011, 04:46 PM Reply Like
  • Bozerdog
    , contributor
    Comments (464) | Send Message
     
    Meanwhile the tea-baggers, dems and repubs are on vacation...on our dime.
    4 Aug 2011, 04:55 PM Reply Like
  • David R.(Canada)
    , contributor
    Comments (80) | Send Message
     
    The tea-baggers live, mostly, I believe, in the San Fransisco area.
    Or, are you simply being a typical Progressive, insulting everyone you don't agree with?
    4 Aug 2011, 05:36 PM Reply Like
  • Bozerdog
    , contributor
    Comments (464) | Send Message
     
    ever choke on that putien?
    4 Aug 2011, 05:43 PM Reply Like
  • varan
    , contributor
    Comments (3321) | Send Message
     
    If the insult fits and all that.
    4 Aug 2011, 08:10 PM Reply Like
  • Dana Blankenhorn
    , contributor
    Comments (5674) | Send Message
     
    Actually Minneapolis is much more gay-friendly, I hear. (Actually they're everywhere. They might even be next door to you. Some look just like you.)
    4 Aug 2011, 08:34 PM Reply Like
  • varan
    , contributor
    Comments (3321) | Send Message
     
    My strategy predicted this, and went into bonds over a month ago.

     

    seekingalpha.com/artic...
    4 Aug 2011, 05:00 PM Reply Like
  • David R.(Canada)
    , contributor
    Comments (80) | Send Message
     
    A couple of weeks ago there was a story circulating that George Soros had sold everything, and was completely in cash.
    Did he know something we don't know?
    4 Aug 2011, 05:04 PM Reply Like
  • Bozerdog
    , contributor
    Comments (464) | Send Message
     
    I dunno but I followed his lead
    4 Aug 2011, 05:05 PM Reply Like
  • Dana Blankenhorn
    , contributor
    Comments (5674) | Send Message
     
    Define "cash." Yen? Dollars? Bonds? Soros is an old man who had decided to retire. Retirement doesn't mean your world comes to an end.
    4 Aug 2011, 05:21 PM Reply Like
  • dritth9297
    , contributor
    Comment (1) | Send Message
     
    Now it will be at a more realistic number!
    4 Aug 2011, 05:12 PM Reply Like
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