Thursday, March 05, 2009
On CNBC they just said, "It's 4 PM on Wall Street. Do you know where your money is?"
Well, apparently, a little less of it is invested in stocks on Wall Street. The S&P500 plunged more than four percent to close at its lowest level since September 1996, breaking decisively below the 700 mark in the process.
A few moments before, Dylan Ratigan was walking around the floor of the New York Stock Exchange saying something about a cherry being on top of something and that the U.S. economy is still fundamentally sound.
If so, then why is everyone scared to death?
Here's some more from Bloomberg:
U.S. and European stocks tumbled, driving the Standard & Poor’s 500 Index to the lowest level since 1996, after Moody’s Investors Service said it may cut JPMorgan Chase & Co.’s credit rating and China quelled speculation the government will add to its stimulus plan.Don't be surprised if after tomorrow's labor report, where some analysts are predicting a net job loss of more than 800,000 in February and a national unemployment rate of over 8 percent, things become even more frightening.
JPMorgan dropped 14 percent as lenders led the plunge. Wells Fargo & Co. and Bank of America Corp. slumped 12 percent after Moody’s said it’s reviewing their ratings, while Citigroup slipped below $1 for the first time. General Motors Corp. sank 15 percent after its auditor said the automaker may not survive. European stocks fell after Aviva Plc, the biggest U.K. insurer, reported a loss.
Concern corporate defaults will rise, the deepening global recession, and dividend cuts at companies from General Electric Co. to JPMorgan have dragged the S&P 500 to three consecutive weeks of declines, pushing the index down 24 percent this year. It has fallen 7.2 percent since Feb. 27.