"A wise and frugal government which shall restrain men
from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government."
(Thomas Jefferson)

Monday, August 8, 2011

Obama Speaks -- Dow starts Diving

UPDATE:  3:25 (CDT)

Wall Street had its worst day since the 2008 financial crisis, as fearful investors reacted to the United States losing its coveted AAA credit rating.

All three major U.S. stock indexes sank between 5% and 7%, pushing the Dow below 11,000 for the first time since last November. Overall, stocks have fallen 15% during the past two weeks.

Though observers said S&P's downgrade shouldn't matter all that much, the market wasn't buying it.

"Investors are having one reaction to the downgrade: Sell first and ask questions later," said Paul Zemsky, head of asset allocation with ING Investment Management. 


Bad Timing on the part of Obama to give a speech in the middle of the day.  Dow is now below 11,000 and who knows what will happen in the next hour.  It is anyone's guess but Obama should have waited until after the markets closed IMHO.

Dow dives 500 points 
Los Angeles Times | August 8, 2011 | 11:10 a.m. (pdt - 2:10 edt) 
The Dow Jones industrial average plunged 500 points in trading today as the markets reacted to Standard & Poor's decision to downgrade U.S. credit.

More soon at www.latimes.com/.
NOTE:  Obama spoke late at 1:30 and after he talked the Dow started losing more, 499 out of 500 stocks in the S&P are lower today, and NASDAQ down almost 150 points.  Bank of America has lost over 18% and S&P Financials are losing across the board.

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