Massive Rout Spells Trouble For Wall Street (The Tea Party Recession creeping closer?)

[Purveyor]

(Reuters) - The S&P 500 turned negative for the year on Tuesday as the wrangling over the U.S. debt ceiling faded and investors turned their attention to the stalling economy.

The broad-based index fell for a seventh day and crashed through its key 200-day moving average in an ominous sign for markets. The seven days of losses mark the longest losing streak since October 2008.

"It is going to be a long week," said Jim Maguire Jr., a NYSE floor trader at E.H. Smith Jacobs. "The bid is not here in the market."

The selloff accelerated into the close as volume jumped well above average. The fall was broad-based, with four stocks falling for every one rising on the New York Stock Exchange.

MORE...

http://www.reuters.com/article/2011/08/02/us-markets-stocks-idUSTRE7701KB20110802?feedType=nl&feedName=usbusinessearly

[orwell]

1. Ah Yes...

...as predicted by many, including yours truly...

When there is no demand the "evil gubmint" must be the buyer of last resort.

Now that everyone has adopted deficit cutting as the new religion at the behest of their Tea Party Overlords, the predictable waterfall has begun.

You see, Wall Street hates the "gubmint" until they see what's on the other side of the cliff.

Wile E. Coyote - say hello to the double dip. Welcome to the Tea Party Recession©...

[C_U_L8R]

2. And they blame Obama

can we just deport all the tea idiots now before they totally break the country. please.

[pscot]

3. Lack of leadership

Heavy weather coming and an unsteady hand at the helm.

[barb162]

4. Wall Street makes money whether people are buying or selling

Now as to investors, that's another story. But as they say, if you can't take the heat, get out of the kitchen. I always wonder why a lot of seniors insist on having a large part of their portfolio in the market, then whine galore when it tanks.