maverick
20-01-2008, 06:54 PM
January 17, 2008 — will go down in history as the day both Wall Street and Washington finally realized that everything we’ve been telling you for three long years has been 100% on target — that ...
This real estate bust and credit catastrophe is creating the most severe economic crisis in decades.
First, the Philadelphia Fed rocked the markets, reporting that plunging consumer and corporate spending and retail sales hammered the U.S. manufacturing industry — driving production down a staggering 20.9% in a single month.
Almost immediately, even Wall Street’s most conservative analysts declared the report “a disaster,” saying the data “screams recession.”
Second, the U.S. Commerce Department announced that new home construction plummeted a mind-blowing 24.8% in 2007 — the single largest decline in 27 years.
Moody's reacted immediately, saying, “this housing downturn will be unprecedented in terms of its breadth across the country and in its severity ... we [haven’t] seen anything like this since the Great Depression.”
Wall Street reeled on the news. Panicky investors drove the Dow down 306 points to a new ten-month low ... slammed the Nasdaq down nearly 48 points; also to a new ten-month low ... and hammered the S&P down nearly 40 points, to its lowest point since November, 2006.
Unsurprisingly, financial stocks suffered huge one-day losses: JPMorgan declined 3.4% ... American Express fell 3.6% ... Wells Fargo and Morgan Stanley each fell 4.5% ... Bank of America dropped 4.6% ... Lehman Brothers fell 5.9% ... and Wachovia plunged 7%.
Few sectors were immune — the carnage spread throughout the market;
Ford declined 1.7% ... AMD and Disney fell 3.5% ... GE fell 3.9% ... Motorola dropped nearly 4.3% ... drug makers Merck and Schering-Plough plunged 6% and 8% respectively ... chemical giant Monsanto cratered 11.6% ... and insurers AIG, MBIA and AMBAC cratered 6.3%, 31.2%, and 52% respectively.
More telling: The Dow, S&P and Nasdaq violated key support levels, causing analysts to warn of even greater declines directly ahead!
Fed Chief Ben Bernanke to Congress:
This crisis is too massive for the Fed to fight alone!
Help!
While Wall Street cratered, Federal Reserve Chairman Ben Bernanke was 210 miles away — on Capitol Hill in Washington D.C. — urging Congress to pour billions of new dollars into the economy — up to $150 billion!
He didn’t have to beg: Both the White House and Congress are already preparing plans to give tax rebates of up to $1,600 per household, double unemployment benefits and more — and we all know what that means:
A massive wave of new federal funny money ... a huge new plunge in the value of the U.S. dollar ... and even higher inflation ahead!
This real estate bust and credit catastrophe is creating the most severe economic crisis in decades.
First, the Philadelphia Fed rocked the markets, reporting that plunging consumer and corporate spending and retail sales hammered the U.S. manufacturing industry — driving production down a staggering 20.9% in a single month.
Almost immediately, even Wall Street’s most conservative analysts declared the report “a disaster,” saying the data “screams recession.”
Second, the U.S. Commerce Department announced that new home construction plummeted a mind-blowing 24.8% in 2007 — the single largest decline in 27 years.
Moody's reacted immediately, saying, “this housing downturn will be unprecedented in terms of its breadth across the country and in its severity ... we [haven’t] seen anything like this since the Great Depression.”
Wall Street reeled on the news. Panicky investors drove the Dow down 306 points to a new ten-month low ... slammed the Nasdaq down nearly 48 points; also to a new ten-month low ... and hammered the S&P down nearly 40 points, to its lowest point since November, 2006.
Unsurprisingly, financial stocks suffered huge one-day losses: JPMorgan declined 3.4% ... American Express fell 3.6% ... Wells Fargo and Morgan Stanley each fell 4.5% ... Bank of America dropped 4.6% ... Lehman Brothers fell 5.9% ... and Wachovia plunged 7%.
Few sectors were immune — the carnage spread throughout the market;
Ford declined 1.7% ... AMD and Disney fell 3.5% ... GE fell 3.9% ... Motorola dropped nearly 4.3% ... drug makers Merck and Schering-Plough plunged 6% and 8% respectively ... chemical giant Monsanto cratered 11.6% ... and insurers AIG, MBIA and AMBAC cratered 6.3%, 31.2%, and 52% respectively.
More telling: The Dow, S&P and Nasdaq violated key support levels, causing analysts to warn of even greater declines directly ahead!
Fed Chief Ben Bernanke to Congress:
This crisis is too massive for the Fed to fight alone!
Help!
While Wall Street cratered, Federal Reserve Chairman Ben Bernanke was 210 miles away — on Capitol Hill in Washington D.C. — urging Congress to pour billions of new dollars into the economy — up to $150 billion!
He didn’t have to beg: Both the White House and Congress are already preparing plans to give tax rebates of up to $1,600 per household, double unemployment benefits and more — and we all know what that means:
A massive wave of new federal funny money ... a huge new plunge in the value of the U.S. dollar ... and even higher inflation ahead!