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Dow Dives 400 Points to End it's Worst Week in 10 Years

Chomsky

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The Friday ticker:

Stocks plunged again on Friday, sending the Dow Jones Industrial Average to its worst week since the financial crisis in 2008, down nearly 7 percent. The Nasdaq Composite Index closed in a bear market and the S&P 500 was on the brink of one itself, down nearly 18 percent from its record earlier this year.

Historical context:

Here’s a tally of the carnage:

- The Dow lost 6.8 percent and 1,655 points on the week. It was its worst percentage drop since October 2008.

- The Nasdaq lost 8.3 percent on the week and is now 22 percent below its record reached in August, a bear market.

- The S&P 500 lost 7 percent for the week and is now down 17.8 percent from its record.

- The Dow and S&P 500, which are both in corrections, are on track for their worst December performance since the Great Depression in 1931, down more than 12 percent each this month.

- Both the Dow and the S&P 500 are now in the red for 2018 by at least 9 percent.

Volume:

The selling had conviction. More than 12 billion shares changed hands on U.S. exchanges on Friday, the heaviest volume in at least two years. The expiration of options also added to the volume.

Source:

(CNBC) Dow dives 400 points to end its worst week in 10 years

Personal commentary:

I'm surprised this didn't get any notice here Friday, that I can see. But our markets seem to possibly be heading into rather serious trouble. The tech-heavy NASDAQ, and the large cap S&P 500, are now officially in bear markets. The Dow isn't far behind. And, the Bond markets keep flirting with an inverted yield curve.

This is dismal market performance, that too often foreshadows a recession.

So what's going-on, here?
 

ajn678

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The Friday ticker:



Historical context:



Volume:



Source:

(CNBC) Dow dives 400 points to end its worst week in 10 years

Personal commentary:

I'm surprised this didn't get any notice here Friday, that I can see. But our markets seem to possibly be heading into rather serious trouble. The tech-heavy NASDAQ, and the large cap S&P 500, are now officially in bear markets. The Dow isn't far behind. And, the Bond markets keep flirting with an inverted yield curve.

This is dismal market performance, that too often foreshadows a recession.

So what's going-on, here?

Trump running the country like many of his failed businesses sadly.
 

ttwtt78640

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The Friday ticker:



Historical context:



Volume:



Source:

(CNBC) Dow dives 400 points to end its worst week in 10 years

Personal commentary:

I'm surprised this didn't get any notice here Friday, that I can see. But our markets seem to possibly be heading into rather serious trouble. The tech-heavy NASDAQ, and the large cap S&P 500, are now officially in bear markets. The Dow isn't far behind. And, the Bond markets keep flirting with an inverted yield curve.

This is dismal market performance, that too often foreshadows a recession.

So what's going-on, here?

Glow bull warming.
 

Utility Man

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Trump was elected to break things, and it seems to be working splendidly.

What has America done for Trump ? Tax and investigate him ?

The sooner he burns this country to the ground the better(for him and Putin).
 

<alt>doxygen

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The Friday ticker:



Historical context:



Volume:



Source:

(CNBC) Dow dives 400 points to end its worst week in 10 years

Personal commentary:

I'm surprised this didn't get any notice here Friday, that I can see. But our markets seem to possibly be heading into rather serious trouble. The tech-heavy NASDAQ, and the large cap S&P 500, are now officially in bear markets. The Dow isn't far behind. And, the Bond markets keep flirting with an inverted yield curve.

This is dismal market performance, that too often foreshadows a recession.

So what's going-on, here?

My take:

We are at the upper reaches of a bubble, and things are inherently unstable at those peaks. Trump has his trade wars, which create more instability. The Fed is in the process of trying to tamp down on inflationary pressures by raising rates and the market reacts negatively to that. Then there's the idiocy of our unstable POTUS and his week full of hissy fits.

We may spin into a recession from here, or it may stabilize. Either way, I expect a recession by 2020. I expected another year of "high" from the spending bill and tax cuts, but...
 

JANFU

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The Friday ticker:



Historical context:



Volume:



Source:

(CNBC) Dow dives 400 points to end its worst week in 10 years

Personal commentary:

I'm surprised this didn't get any notice here Friday, that I can see. But our markets seem to possibly be heading into rather serious trouble. The tech-heavy NASDAQ, and the large cap S&P 500, are now officially in bear markets. The Dow isn't far behind. And, the Bond markets keep flirting with an inverted yield curve.

This is dismal market performance, that too often foreshadows a recession.

So what's going-on, here?

I go with the guy who stated the next recession would be comparable to the Dirty 30's

You may find it interesting

https://www.marketplace.org/2016/04/06/world/economy-debt-cycle
 

Mycroft

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The Friday ticker:



Historical context:



Volume:



Source:

(CNBC) Dow dives 400 points to end its worst week in 10 years

Personal commentary:

I'm surprised this didn't get any notice here Friday, that I can see. But our markets seem to possibly be heading into rather serious trouble. The tech-heavy NASDAQ, and the large cap S&P 500, are now officially in bear markets. The Dow isn't far behind. And, the Bond markets keep flirting with an inverted yield curve.

This is dismal market performance, that too often foreshadows a recession.

So what's going-on, here?

The Fed and Chucky.
 

SheWolf

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The Friday ticker:



Historical context:



Volume:



Source:

(CNBC) Dow dives 400 points to end its worst week in 10 years

Personal commentary:

I'm surprised this didn't get any notice here Friday, that I can see. But our markets seem to possibly be heading into rather serious trouble. The tech-heavy NASDAQ, and the large cap S&P 500, are now officially in bear markets. The Dow isn't far behind. And, the Bond markets keep flirting with an inverted yield curve.

This is dismal market performance, that too often foreshadows a recession.

So what's going-on, here?

The stock market is in a downturn, and the national debt is soaring... over 21 trillion.

Experts say the trade war with China is also causing a global economic slowdown.

Q3 economic growth was also revised, down to 3.4%.

None of this looks good, and for me personally, it's not surprising. Since the tax cuts, financial experts were predicting a correction, because companies were using the tax cuts to buy back their own stock. It was predicted to be a temporary bump, but things are looking more serious than a simple market correction.

The exploding deficit and shaky market make it look like the GOP has learned nothing from the GWB years. None of this good for America, but I can't see the GOP's legacy being good for their party either.

https://www.cnbc.com/2018/12/20/gdp-q3-2018-final-reading.html
 

Rexedgar

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Captain Adverse

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...I'm surprised this didn't get any notice here Friday, that I can see. But our markets seem to possibly be heading into rather serious trouble. The tech-heavy NASDAQ, and the large cap S&P 500, are now officially in bear markets. The Dow isn't far behind. And, the Bond markets keep flirting with an inverted yield curve.

This is dismal market performance, that too often foreshadows a recession.

So what's going-on, here?

I'm not an economist, so I ask our educated economists this question....

What effect does the Federal Reserve's increasing interest rates have on investment confidence?

My limited understanding of market motivations seems to indicate that investors seek the greatest return they can achieve and will "buy low and sell high."

The stocks were soaring because of the tax breaks, trade treaty changes, and low interests rates allowing borrowing to buy more stock combined to create a bull market confidence.

However, buying low and selling high usually means (if I understand correctly) selling fast and hard the moment confidence that share prices will continue to increase disappears and is replaced with fear prices are threatening to drop.

That this creates a downward spiral unless investors are willing to commit funds to bolster the stock.

Doesn't the Fed's increase in interest rates deter borrowing to invest and thereby affect such confidence?
 
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SheWolf

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Trump running the country like many of his failed businesses sadly.

I agree. He inherited something like 400 million from his father. He is not a self made billionaire, and he is running America like his own businesses. Wealthy people and corporations got huge tax breaks, and now our economy could very well crash. Another bail out is not going to be acceptable.

I also think it's very well known that Trump used his casinos to launder money and make personal loans to pay off other debts. I highly doubt Fox News did anything to inform their viewers about the shady business practices and business failings of Trump. They bashed Obama 24/7, but Fox News is highly responsible in not informing their viewers of Trump's dishonesty and personal failings.
 

SheWolf

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Trump was elected to break things, and it seems to be working splendidly.

What has America done for Trump ? Tax and investigate him ?

The sooner he burns this country to the ground the better(for him and Putin).

Sad but true. Bannon would probably be delighted to see Americans near civil war and the government in ruins. I think some of Trump's supporters would also like that, but maybe not the majority of people who actually voted for him... but there are people like that in the GOP base. Neo nazis and white supremacists are especially wanting a race war, but they would feel happy seeing a any type of civil disruption like the civil war types.
 

Mach

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When the economy is doing well, it's 100% Trump.
When it's not, let's ask "economists", and let's say it's the Fed being irresponsible, let's "ask questions" with regards to what has created this change.

****ing Trump supporters have no low they won't try.
 

Mycroft

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The stock market is in a downturn, and the national debt is soaring... over 21 trillion.

Experts say the trade war with China is also causing a global economic slowdown.

Q3 economic growth was also revised, down to 3.4%.

None of this looks good, and for me personally, it's not surprising. Since the tax cuts, financial experts were predicting a correction, because companies were using the tax cuts to buy back their own stock. It was predicted to be a temporary bump, but things are looking more serious than a simple market correction.

The exploding deficit and shaky market make it look like the GOP has learned nothing from the GWB years. None of this good for America, but I can't see the GOP's legacy being good for their party either.

https://www.cnbc.com/2018/12/20/gdp-q3-2018-final-reading.html

There is a "global economic slowdown", but there is NOT a US economic slowdown.

The market speculators who depend on the "global market" are frantically triggered.
 

Mycroft

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The fed contributed, but I see Trump to your Chuck.

Trump has done nothing to cause the market drop. (unless, of course, you contend that insisting on national security is a bad thing)
 

DaveFagan

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The Fed and Chucky.
Comeuppance. The big Corporate tax giveaway supposed to create work and jobs was used for buyback of Stocks to raise the stock price and enrich the stockholders, but there is/was no development of jobs or products. Debt went up. Deficit went up. Like drugs that take you up and then drop you way down. An overvalued fiat currency that the USA cannot afford to drop. A military policy dragging us into a more ridiculous debt hole. Just a few inconsequential items for your perusal. As a sidenote. If Trump got credit for the market rising, he gets the blame when it goes in the crapper. Circling the bowl./
 

SheWolf

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Trump has done nothing to cause the market drop. (unless, of course, you contend that insisting on national security is a bad thing)

His tax cuts caused a predicted over valued stock market and a correction. His trade war is causing a global economic slow down. His policies were also predicted to cause the deficit to soar.
 

Jetboogieman

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This is probably the market correction we all knew was coming, however, how far this will continue is anyone’s guess.

If anyone knew the answer to such questions they’d just pick the winning lottery numbers, economics isn’t an exact science, if it was countries would just do what made the economy grow forever and ever and ever without a problem.

Stocks were severely overvalued and the Fed had to act due the massive inflationary risks, yes that upsets Trump because the market correction (and hopefully nothing more) will happen under his watch, but the Fed takes longer term actions than politicians do, it’s what is required.

Now, generally speaking Presidents get far too much blame and credit for good/bad economies, so next time don’t be so quick to shower someone like Trump with all the praise in the universe over the stock market among other things, because now you look really silly blaming the Fed when the Chairman was appointed by Trump and that the Fed interest rates are still viciously low historically speaking...

Guess All those massive tax cuts didn’t help at all eh?
 

Chomsky

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The stock market is in a downturn, and the national debt is soaring... over 21 trillion.

Experts say the trade war with China is also causing a global economic slowdown.

Q3 economic growth was also revised, down to 3.4%.

None of this looks good, and for me personally, it's not surprising. Since the tax cuts, financial experts were predicting a correction, because companies were using the tax cuts to buy back their own stock. It was predicted to be a temporary bump, but things are looking more serious than a simple market correction.

The exploding deficit and shaky market make it look like the GOP has learned nothing from the GWB years. None of this good for America, but I can't see the GOP's legacy being good for their party either.

https://www.cnbc.com/2018/12/20/gdp-q3-2018-final-reading.html
I didn't reply to your other posts, but I have to say all your posts have been dead-on here. I liked them all (both cyber & RL!). And I'll just add to the bolded, that the growth rate is being forecast to fall to the mid 2's, for Q4. We shall see.
 

Mycroft

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Comeuppance. The big Corporate tax giveaway supposed to create work and jobs was used for buyback of Stocks to raise the stock price and enrich the stockholders, but there is/was no development of jobs or products. Debt went up. Deficit went up. Like drugs that take you up and then drop you way down. An overvalued fiat currency that the USA cannot afford to drop. A military policy dragging us into a more ridiculous debt hole. Just a few inconsequential items for your perusal. As a sidenote. If Trump got credit for the market rising, he gets the blame when it goes in the crapper. Circling the bowl./

Don't be ignorant.

You are uninformed...or just in denial...about "development of jobs or products". You are just as uninformed...or just in denial...about the rest.

https://www.instituteforsupplymanagement.org/about/MediaRoom/newsreleasedetail.cfm?ItemNumber=31086
 

Chomsky

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There is a "global economic slowdown", but there is NOT a US economic slowdown.

The market speculators who depend on the "global market" are frantically triggered.
Well, it's not yet a U.S. slowdown. But it will be, in a longer-term global slump.
 

Mycroft

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Well, it's not yet a U.S. slowdown. But it will be, in a longer-term global slump.

No. It won't. And that's Trump's doing.

He is unhooking the US economy from the global economy...the stock market, that is.

If the US economy suffers, it'll be from opposition forces such as Powell.
 
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