Ten Reasons To Panic About The Market

[marmar]

from 24/7WallStreet:



Ten Reasons To Panic About The Market
Posted: August 5, 2011 at 6:39 am


The sell-off, which has driven most stock markets around the world down by 10% in the last week, is likely to get worse. It is a sign that many believe a new recession has begun. This trouble can be coupled with a credit disaster in Europe and deficit trouble, which did not end with new budget plans set by Washington, in America.

Panic has set in as the markets have sold off. There are reasons that the panic may get worse:

1. Markets collapsed as the last recession reached a bottom. The DJIA, which traded at 14,000 in 2007 dropped below 7,000 in the spring of 2009. If the recent past is any indication, equities have much further to fall.

2. Corporate profits are likely to disintegrate. Cost cuts are near their limits. These cuts have helped company earnings recover over the last two years. The leveraged corporations have to keep margins if sales continue to drop.

3. Unemployment is still much too high to help consumer spending. U.S. joblessness is still well over 9%. Over 14 million people are out of work, and about 6 million of those have not found jobs in over half a year. ..........(more)

The complete piece is at: http://247wallst.com/2011/08/05/ten-reasons-to-panic-about-the-market/#ixzz1UAFtqU5E

[Lint Head]

1. Actually the lastest jobs report improved.

[marmar]

3. But with all the job cuts announced over the last week.....

..... in addition to the continual downsizing of state and local governments, that's bound to change.

[DJ13]

4. 117,000 jobs.... We need about 150,000 just to meet new entrants in job market

And that 150,000 number fails to address the need for jobs by those already unemployed.

[Speck Tater]

5. Plus they ALWAYS revise those numbers downward after a couple weeks. nt

[snappyturtle]

2. Dow down 216 at 11:00 AM CST. Not looking good. imho nt