Dow set for worst new-year losing streak since '82

[barb162]

NEW YORK (Reuters) - The Dow Jones was looking set to close lower for the week Friday -- marking the first time in more than 20 years it has fallen for the first three weeks of the start of a year.

Dow Jones Indexes said the last time the Dow had fallen for the first three weeks of a year was 1982.

A weak January could set the tone for the months ahead, said Robert Drust, managing director of listed trading at regional investment bank Wedbush Morgan.

snip

Heading into the final hour of trading, the Dow on track to end the week 1.2 percent lower, its fourth consecutive week of losses.


© Copyright Reuters Ltd. All rights reserved. The information contained In this news report may not be published, broadcast or otherwise distributed without the prior written authority of Reuters Ltd.


01/21/2005 14:49
RTR


http://cnn.netscape.cnn.com/ns/news/story.jsp?id=2005012114490002900304&dt=20050121144900&w=RTR&coview=

[Goldeneye]

1. And so be it. The people have spoken.

:eyes:

[barb162]

2. And I think "fear" is the word they are speaking

[ausiedownunderground]

45. Your in a war- nobody wants to buy American stuff!!

The US is at its most vicious! The "Rest of the World" is really "Pissed" off at you and their is very very unofficial boycott's of American products going on in The "Rest of the World". This is just not consumer products! I work in a heavy heavy industry and we are all choosing American last!! Down here in OZ our national airline has just bought 12 Airbus 380's to replace Boeing's 747's. All our airports around the country are paying millions to upgrade to take the new Airbuses. Airbus is made in Europe not Seattle. It might take American's a while to realize what is going on in the world, but it is completely negative for you! So enjoy the Dow! while it lives in OZ!!

[shrike]

52. Sy Hersh predicted that

A boycott of American products. His predictions are usually right on the money, so I'm not surprised.

[tsuki]

57. I am not sure this is the total reason. I have been reading reports

where the "smart money," you know the 1% that owns 40% of the wealth of the nation, have been investing funds in European Securities and not the US stock market. This may be why Bush is so adamant on giving Wall Street Social Security.

[cornermouse]

3. A market crash looking for a time to happen.

[oneighty]

5. Quick quick

an infusion of the people's social security monies.

Yes, that will save the investors.

180

[Vitruvius]

24. 1928 was the first gov't push to get people to put their retirement

in the stock market; the establishment saw a stock market crash coming and wanted to swindle people out of their retirement money to delay it or stop it. They even lassoed some of the lap-dog Dems of the Coolidge-Hoover era into supporting it, and the bought-and-paid-for corporate media of the day shilled for it without mercy. However, it got pushed to one side by the election campaign of '28, and they didn't get the legislation passed before the great crash of Oct '29.

The bottom line: Bu$h's Social-Security-into-the-stock-market plan is a leading indicator of a crash. Just like the 1928-29 scam was.


P.S: After FDR came to power, a number of the promoters of the '20s scam went to prison. Including Richard Whitney, the head of the New York Stock Exchange.

[genieroze]

35. Holy Crap, 1929 here we come, thank God * it's Black Friday.

[Career Prole]

4. Healthy inaugural "bounce" there, eh?

Oops...'scuse me. I had the chart upside-down. :eyes:

[tsuki]

58. LOL...

[The Doctor.]

6. I didn't buy a Damn thing yesterday...

So it's all my fault.

Seriously though - this is going to hurt all of us. The sad fact is the wingnuts won't make the connection.

"Our fearlees leeder got a bad econimy from Clinton!"

[benny05]

8. Hello Wall Street...

Despite predictions that an incumbent president usually keeps the Markets up, this proves Wall Street wrong. It's a war economy, stupid, and understand that if we don't have jobs, we cannot go to Wal-Mart, any fast-food restaurant, or have cable tv. Moreover, I bet the overseas regional markets have lowered prices on US firms. I'll have to check those out.

[KayLaw]

12. Hmmph!

Darn you, Dr. eldrich. You've ruined everything,now!

And no, they won't.

[leesa]

7. They pumped enough money into it to keep it afloat for the elections

Exactly what I thought they would do.

[benny05]

9. So this is Bush's reason to put SS into it

Great money managers these people are. Sorry, I'll take t-bills over losing money managers..

[ozone_man]

16. Down escalator for the next 2 years.

Now that the election is over, it's safe to let the air out of these markets.

[rooboy]

10. Mandates are nice, but they don't pay the bills. n/t

[Ernesto]

27. Mandate?

There ain't no stinking mandate! chimp won by the narrowest margin of any incumbent in history.

[moondust]

11. Bush bubble deflating.

If you believe that the rise of 2004 was little more than part of a corporate reelection campaign, it's no surprise that now without a motive it will return to earth. Same with the job market.

[Piperay]

13. Gee I thought the repukes were

supposed to be so good for business...hmmmm...and the last time they did that bad was under Raygun...who'd a thunk it. :shrug: }(

[VegasWolf]

14. The old adage that as the first week in January goes, so goes

January, as January goes so goes the new year. The
difference this year is that we knew back in November
how the new year would go because we have georgie boy at the helm.

[llmart]

15. There's going to be a lot of cognitive dissonance.....

among the sheeple who voted for him.....hmmm.... "but he told me the economy was booming."

Tee hee. Meanwhile, I'll have my savings in safe places - not the markets.

[barb162]

17. what are the safe places? I think there will be a recession soon

[llmart]

22. Passbook savings may only give you 1 or 2%.....

but they are guaranteed, unlike the stock market. And, hey, there's always under the mattress!

My grandfather used to hide his money in coffee cans in an underground basement that he dug himself. We used to laugh about it, but it was about as "liquid" as you could get. Whenever he needed money he had only to go down the secret trap door in his kitchen and go get some.

[amazona]

46. you can do better than 2 percent passbook savings

Go to this site:

http://home.ingdirect.com/

ING Direct is a large Dutch bank but you can open a savings account in dollars. It is pretty easy to do online or by telephone. Current interest rate is 2.35 percent. On edit-- very important to mention -- your money IS FDIC insured.

If you get a referral to open the account, you get something like $25 -- which effectively increases your interest rate on a small opening deposit. I'm about to leave town but I bet if you post in the lounge or on a financial discussion site asking for a referral, someone will Private Message you and give you one.

The conservation movement is a breeding ground of communists
and other subversives. We intend to clean them out,
even if it means rounding up every birdwatcher in the country.
--John Mitchell, US Attorney General 1969-72

[llmart]

55. Hey, thanks for the info.....

I'll check it out. I'd much prefer to put my money in a Dutch bank then one here.

Even a .35% increase is better than nothing:)

[VegasWolf]

29. Don't know about you guys, but i'm following warren buffet and

putting my money into strictly european funds and converting
to euros.

[amazona]

44. you lose too much on transaction costs

The time to get into the euro was a couple, three years ago. The dollar has already lost 60 percent of its value against its peak against the euro, so I'm not seeing where you have much of an upside buying euros now. And the transaction fees are killer.

No use trying to get on a boat that has already sailed.

Disclosure: My financial advice is probably worth every penny you paid for it.

The conservation movement is a breeding ground of communists
and other subversives. We intend to clean them out,
even if it means rounding up every birdwatcher in the country.
--John Mitchell, US Attorney General 1969-72

[0007]

39. A coming recession has all the ear marks.

I was surprised at long they propped up the market.

[barb162]

40. I agree;money market funds get you next to nothing, so people

take a chance on the market

[Ernesto]

30. May 5, 2005 is the day I cash out of the market

I'll be 59 & a half. No early with drawl penalty & my IRA is history.

[llmart]

38. Yes, but can you take the entire amount out?

I'm not up on this, but I thought you had to take "payments" on some sort of a schedule and were still prohibited from taking out the entire amount.

I'm closing in on 59-1/2 in a couple of years and I would do the same thing if it's OK.

[Ernesto]

53. Sorry, I wouldn't know

since I've little faith in gambling. I've only put in the minimum hourly contribution, so I only have about $4K in my fund. I relied on my UNION defined contribution retirement plan that has served me very well.

[llmart]

54. I believe you have your 401K confused with an IRA......

An IRA is a self-directed retirement account. The 401K is done through your employer.

You're very fortunate you belong to a union. If Repugs had their way, unions would all be gone. We need more people to unionize.

[Ernesto]

62. I believe that you are correct

Actually, the thing is called a 401(a).

[Kolesar]

56. You could do "dollar cost averaging"

Take it out in portions like 1/4 every four months. That way you won't hit the low point of the market. I don't know what you are going to buy though. The value of the dollar has been sliding for 2 years.

[Zynx]

42. I have my money spread around.

I have a good chunk of it in Procter and Gamble and have had it there since September of 2000. It's been REALLY good to me since then.

[sarcasmo]

18. Don't forget to invest that Social Security.

[Bigmack]

19. Moved my TSA to Canadian...

stock fund.

I did it for emotional reasons right after the election, but it's gone up bigtime.

You guys who know what you're talking about:
My reasoning is that if the Wall Street market goes down, investors will be looking for a better location for their money, and move it to Canadian stock funds, driving my fund up.

Sound reasonable?

[ozone_man]

23. Well, it was a few years ago.

But I think we have a world economy to a significant extent now. Sure investing in Canadian or European currency and markets would have been a great play in 2000-2005, but they'll be going down with us now just as the Balrog pulled Gandalf down into the abyss. Like Gandalf, they shall rise from the abyss, while we may not.

[gulliver]

60. I put a chunk into a Canadian fund too.

I think it might be a good hedge against a weak dollar. It's doing fine for me so far. I'm actually a little ahead in it over the last month while my U.S. mutual funds have taken a dip.

[NYC]

20. The Wall St. equivalent of Not One Dime day.

Money talks.

[DeepModem Mom]

21. kick

[catmandu57]

25. I hadn't been paying attention

until the other day, I had been seeing the red numbers, but, just not registering it. Now, I'm looking at this and asking myself wtf is going on here.
Of course I knew they had been propping this up for the election, but, now I realize the only reason to continue it would be to make the chimp's* social security scam look good.
Maybe there's just too much weight to keep it lifted up, but these cretins have so much they're holding up their legs must be bowing, maybe we have a giant collapse coming, and not just in the market.

[LunaC]

26. Relax - it's just a "correction"

/end sarcasm

[barb162]

33. HAHAHAHAHA

[AmerDem]

28. What a coincidence.

Both times while a repuke nitwit was at the helm. For a party that likes to associate itself with fiscal responsibility repuke are the worst in our country's history at managing money.

nitwits to the core.

[barb162]

34. Bush never saw a spending program for business he didn't like. He

just doesn't like social spending programs.

[VegasWolf]

31. Wow, the DOW at 10,380. Four years of bush leadership and the

DOW has only moved a net of 100 points. DOWN.
LOL at the pickup driving republicans that voted bush for a
second term.

[Yavin4]

32. The Markets Are Dropping Because Interest Rates Will Be Higher

than 3.5% at year's end. I've said this a million times. One of the biggest reasons why Bush won re-election was Alan Greenspan's cheap debt policy of the last four years, a policy that cannot continue. He'll have to raise rates over 4.5% if he wants to really wring out inflation brought on by the cheap dollar.

[barb162]

36. To stay out of recession, Greenspan dropped rates to the lowest in

40 or so years these last 4 yrs. and we are still just barely holding our heads above the water. Under Clinton, rates were in the 8% range as I recall and we were doing fine economically compared to this nonsense. Between the Bush tax cuts and the war sucking the treaury, we are tanking

[Ernesto]

37. Yes & now Greenspan's running low

on band aids.

[tsuki]

59. ReThugs have plenty of band-aids, with cute little purple hearts on them.

[jmcgowanjm]

43. "All the trend lines we can identify are all in the wrong direction,"

"All the trend lines we can identify are all in the wrong
direction," said Michael O'Hanlon of the Brookings Institution,
a Washington policy research organization. "We are not
winning, and the security trend lines could almost lead you
to believe that we are losing."

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=1173020

This is from IraqInvasion analysis, but the same
can be said for USEconomy.

Don't know exactly which rates you're talking about
but the TenYear Tres is lower than it was
2 1/2 years ago.-4.14%

The housing market is collapsing even as we
speak and it can only get worse
w/ rising rates. A 1/2 point rise from here is all it
would take. Like 1929-30, the Fed would be
blamed for raising rates when it should have been
easing, but like then the Fed is in a (steel)box
because of accomodation since it stopped
the meltdown in 2001.

2001-4 IS THE FIRST TIME IN HISTORY FOR WHICH WE
HAVE DATA DURING WHICH JOBS WERE LOST DESPITE
ONE OF THE LARGEST STIMULI IN
HISTORY.

THE HIGH DURING THE LAST SIX MONTHS OF
THE RECESSION HAS NOT BEEN EXCEEDED EVEN AFTER
37 MONTHS OF THE RECOVERY. During the first 12 months
of the recovery, both the nominal AND real highs were more
than 10% below the high during the last 6 months of
the recession. This has NEVER happened for the past
134 years.

What makes the current situation unique is that the
poor performance is despite one of the largest stimuli
since 1929 and a resulting Housing Bubble. At some point
the stimulus must end, as the Fed is already in the process
of "removing accommodation" and Bush wants to cut the
deficit in half, and bubble must burst, even if slowly. And at
that point the economy will slide into a recession naturally
and into a depression because of the burden of
Household Debt, which will cause massive mortgage
defaults and personal bankruptcies.

http://www.safehaven.com/article-2482.htm

[amazona]

47. yet we need higher interest rates and badly

Ask older people who rely on CDs ladders and treasuries what these low interest rates have done to their income. It has become very, very difficult just to pay the bills in many cases.

People who planned and thought they were being responsible by having other source of income than just Social Security...have now learned that the "air" can be very quickly let out of the "tires." No one has ever called the CD or treasury note buyer a wild-eyed speculator yet if the interest rate is too low, they have no option but to dip into principal, and soon their capital is gone and they are too old to work and replace it.

If it wasn't for home ownership and the rising real estate market, a lot more retirees would be completely in the soup.

It really makes you think that all our hard work to save and invest is a complete waste of time! At least if you spend it as you get it, you have the immediate gratification and memories that can't be taken away.

The conservation movement is a breeding ground of communists
and other subversives. We intend to clean them out,
even if it means rounding up every birdwatcher in the country.
--John Mitchell, US Attorney General 1969-72

[MadisonProgressive]

41. Those tax cuts for the rich really helped save the economy!

dumbass dumya

[HeyManThatsCool]

48. article on this from CNN

http://money.cnn.com/2005/01/22/markets/sun_lookahead/?cnn=yes

[depakid]

49. Market adjustment- fuel for privatizing social security?

Inquiring minds want to know....

[Mojorabbit]

50. Is it worth

looking into gold? I am at a loss where to put the little I have...

[barb162]

61. Gold is going up a bit the past few months, but still

nowhere near what it was in the 70s or early 80s, about 600+ an ounce.

One has to start thinking whether there will be a depression or recession and whether each will be long or short-lived. Then decide from there how you want to protect or even try to grow what you have.

[grahamhgreen]

51. Link is down...

at least for me....