Friday, October 10, 2008

The Dow Jones Index opened over 7% down amid a dismal day on the world markets.

Dow Plunges Over 7% Amid Turmoil

The fall follows London's FTSE, which has suffered one of its worst weeks in history. It is now trading at around 9% down. France CAC 40 and Germany's DAX have also plunged today, both down over 9%. This morning the Asian markets closed, with the Japanese Nikkei down 9.62% - its biggest one-day drop since Black Monday. World makers have been in turmoil since the Dow reached a five year low in trading yesterday, dipping below 9,000 points for the first time in five years. President Bush is set to address the American public in response to the financial crisis, as fears that the global economy is in recession grow.

Posted by malct @ 02:47 PM (1569 views)
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46 thoughts on “The Dow Jones Index opened over 7% down amid a dismal day on the world markets.

  • London Stock Exchange web-site is playing up. Either “service unavailable” or no figures / graphs.

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  • Will this be “Meltdown Monday” part IV for the Dow?

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  • they might not have an opportunity on monday……they might shut it. Other markets are shut so if they do shut it dont we think the shorts wont want to go into a long weekend holding those? I know i wouldnt, well not if i were short at these levels!!

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  • Dow opened 10% down but seems to have recovered all those losses in under an hour.
    The ftse stages a miraculous recovery after the ftse website goes down temporarily.

    No crash here everthings just fine now move along please.

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  • Something very strange going on IMO

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  • I think I’m ready for the conspiracy theorists now.

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  • techieman – shorts in this market – traders need incontinence underwear (LOL)

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  • BBC Breaking news

    President George W Bush has promised the American people the US government is working “aggressively” to restore stability to the economy.

    Speaking from the White House, Mr Bush said the market turmoil was being driven by “uncertainty and fear”.

    He spoke as world markets tumbled amid rising fears of a global recession, despite interest rate cuts and huge cash injections by central banks.

    The US recently approved a $700bn (£409bn) rescue plan for Wall Street.

    Mr Bush said: “We are a prosperous nation with immense resources and a wide range of tools at our disposal. We are using these tools aggressively.”

    He said the US was working with other world governments to steady the markets.

    “We’re in this together and we’ll come through this together,” he added.

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  • mountain goat says:

    TM agreed going into the long weekend short is crazy, especially with this global leaders meeting, who knows what they will come up with. Dow should recover as shorts buy back.

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  • FTSE down 5.85%, 4,061, at 3:50.

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  • mountain goat says:

    This volatility must be paradise for trading pros. Chance of a lifetime. Selling now is daft though, you have earned your losses if you do.

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  • Got through just now – just watching the few shares I’ve got go down. Thank Heaven I switched my pension out.
    Can’t take too much of this excitement at my age!

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  • some good buying to be had now… i bought barclays

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  • I know alot of folk on this site are into gold based on a melt down but assuming that doesn’t happen then stocks starting to look interesting.

    By some kind of freak managed to pick up BRK B shares for $3000 a piece first thing

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  • everythings goin to be OK

    I just heard darling say “we’ll do everything needed to etc etc”

    I conceed – I’ve heard it so many times now it must be true

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  • little professor says:

    OMG look at the FTSE!!!

    Undoctored picture. BBC website is going mad.

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  • An aside question: Will it be hyper-inflation or deflation?

    Yesterday I was talking to someone who just the week before had dinner with ‘one of the Top 10 richest people in the world’ (won’t be any more specific – it’s work-related!) Ownder of a multi-billion business empire, and now preparing for a worldwide deflationary depression. He know’s what he’s talking about, so I’m firmly in the deflationary camp as of yesterday. Hang onto your cash, cos there ain’t going to be much of it around soon, and everything’s going to be getting cheaper….

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  • plato what i thought was bad luck (missing 4200 yesterday) turned out to be lucky. As i said somewhere else got out of most of what i had left this am more or less on the opening gap with a capital G. The opening bids were ridiculous, the boys were showing low bids to see who they could suck in – whites of their eyes.

    To be frank there is screaming divergence between the RSI and the prices and the market is ridiculously oversold now i wouldnt be surprised to see basically anything next week – a sharp rally is on the cards, but im not going long only because i think we eventually see more downside. I have puts @ £x a point left (I dont think i should say what “x” is 😉 which are a few hundred points in the money and represents 5% of what i started with. i had 25% left first thing this am. As i said i was convinced last night when FTSE closed below intra day support of 4400 that we would have a big fall. Still keep trading the puts and calls but to be honest the VIXs show that the sellers are getting too much for the money (Margins on the exchanges will probably increase – IG are increasing Monday). Sorry if this all sounds a bit gobbledygook.

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  • Doom im with you – i think the credit contraction overrides what they do to try to stop it…… you can see people with worried looks on their faces. Its actually very sad although it was very prdictable in terms of what would happen but not – in my view in terms of when!

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  • Whostolemyendowment says:

    As prices hit rock bottom, if 1p sees a 100% rise it’s only 2p! 1000% is only 10p !!!

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  • [email protected]. Agree – the credit contraction is past the point of no return. No matter what action is taken, the only result can be a drawing out of the process at best – the conclusion will still be the same.

    The saddest part of it for me is that we have impoverished our children and our grand-children. We’ve spent their collective inheritance on gross self-indulgent lifestyles, and the debts are now part of the fabric of the universe and cannot be undone.

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  • doom&gloom said…
    
    Deflation is an absolute certainty. The real problem is that Ladbrooks do not accept bets on
    disasters.

    I wonder if they would accept bets against Gordon Brown getting a Knighthood or a Nobel peace prize?:

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  • A disinflationary scenario with sterling becoming increasingly debased making

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  • just holding onto cash less attractive.

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  • techeman

    Yes that was a bit techy for me but I get the gist. It really is looking like the market is oversold now BUT here we go again with another weekend meeting and yet another remedy. These buffoons are causing this volatility. They are confusing the markets on top of the problems.
    It’s the timing – it’s critical and it’s too fast. I really wasn’t expecting this till the New Year. My prediction of little movement lasted one day then bang! Yours then came close and I reckon if they hadn’t lowered the IRs at the same time you would have been right on the button.
    You’ve got the weekend to think,but who knows what they are going to come out with this time.
    I reckon there should be some bargain buying and a rally next week,but when and for how long is the tricky part.
    I had a lousy 2 days but back on song today. Sorry about the elegant es.- led most but ran out of juice.

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  • mountain goat says:

    no no no a deflationary spiral will not be tolerated by Central Banks. This is lesson 1 at Central Banker school. They are taught that Hoover let things deflate and caused the Great Depression soup kitchens etc. This is why they dropped the gold standard so it would never happen again. Do not bet on deflation. HPC might go to 60% but bank idiots have leveraged up 40x to produce the toxic mortgage mess. They will be bailed out which eventually means printing the cash to match the face value. This is inflationary. Things will not get cheaper, no sir.

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  • mountain goat said…

    bellwether said…

    Wrong, Cash is King Now. Check the price of oil, wheat, cafe prices, anything you like- All are falling. Deleveraging is know the game. Skirts are going to get longer and women are going to contol weak men. There are covert hostile entities posting on this blog with their own inerests at stake – No 10 & 11 – double agents?

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  • take a walk out of the wood

    look back at the trees

    when they create new money using debt

    they don’t create the interest the debt will incur

    the interest is taken from us all

    I will keep saying this until others saying it drown me out

    wake up, pick up your plough share, forge it into a sword

    and caste off your masters of slavery

    OK leave until after eastenders

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  • mountain goat says:

    DW – “covert hostile entities” – thanks very much. Because I disagree with you I am now your enemy?

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  • mountain goat said…

    There are ‘very nice’ covert hostiles postingn here. There are many openly angry and compassionate posters to. there are also many helpful and knowlegable people. I did not say that you were one. I said that you are wrong. This site is being maniputaled by them. If you are my enemy, then you are not covert, if you are covert, then you are trying to be very clever? Who Knows who is who and what their motives are when posting here. Who are the managers of this site? Is it No 10 & 11 and their double agents? Think about this.

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  • down wave – mountain goat – love your spirit / s

    I used to question and doubt big brother

    but I know we are two sides of the same quion/ coin

    it is pointless trying to hide your thoughts

    big brother sees beyond your distractions

    fubar or fubra as it is sometimes called kmows this

    and wants to help bridge the knowledge gap in your mind

    oh twaddle peanut monkey spasm – give the goat a carrot

    I can’t keep this up until xmas

    goodnight

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  • MG – the question is in the balance. They realise that there is deflation and yes they will try to overcome it.. Perhaps they will be able to get it just right, perhaps they will over inflate, perhaps they wont inflate enough. Yes they have learnt lessons from the depression but it really isnt the same this time, They have been caught out by the speed off the top, thats no surprise its a bubble after all in assets and in the growth of money. You have your point that they will either perfectly compensate (well thats not yr view) or over compensate. Some agree some disagree. I think they aint that clever cause if they were they wouldnt be where we are now.

    All we can do – and this may sound mercenary – is to make the most of the opportunities that there are, at the moment my eye is firmly on the markets, as it should be. Intersting moves in gold today.

    Re those markets looks like you were right – Dow has bounced to “only” 100+ points down.

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  • mountain goat says:

    Malct thanks for the carrot

    goodnight

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  • btw when MG first came on here we (me and him) had a skirmish. Everyone can have an opinion – right or wrong. If i am wrong so be it. But to be honest its a bit like when u have had a fight at school. Afterwards win loose or draw there is a respect. MG has shown he can present an eloquent argument so whether u agree with his view or not i think its a view that promotes debate – and thats a really good thing. Respect MG!

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  • Look, when (not if ) we all get the chance to meet, We have to realise that we have so moch more in common than the differences we have shown.

    I’ve been online since 1996 and this is the first and only site i’ve ever got under my skin.

    I know I’m going to really like all the peeple I’ve disagreed with, simply because they are, to a man or woman, opinionated and have conviction.

    The people (almost all) who post on here, are the sorts of people I want to meet.

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  • What about this meeting.

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  • Well sat 29th suits me best and we seem to be erring towards stratford or bath I think now. I’ assuming stratford upon avon not statford london.
    btw nooneo left a post on the last longish thread for you and tc about your lending idea.
    tc left an email address today I’ll get something to it over the weekend.

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