Dow closes at 7,997.28
Stocks fell hard on Wednesday as a selloff gained momentum near the close and the major indexes tumbled to 5-1/2 year lows.
The Dow closed below 8,000 for the first time since March 2003 as investor confidence dried up amid ongoing worries about the economy and the future of the auto industry.
The Dow Jones industrial average (INDU) shed more than 400 points to close down about 5%, according to early tallies. All 30 Dow components ended lower.
The Standard & Poor's 500 (SPX) index slid 6% to its lowest level since March of 2003. And the Nasdaq composite (COMP) lost 6.5% to settle at its lowest point since April 2003.
CNN | Dow below 8,000 - 1st time since '03
Massive US trade deficits have been financed by giving up US assets to foreigners, who now own the income flows as well. Budget deficits from 6 years of pointless wars and from unsustainable levels of military spending have helped to flood the world with dollars and to drive down the dollar’s exchange value. Consumers themselves are drowning in debt and can provide no lift to the economy. Millions of the best jobs have been moved offshore, and research, design, and innovation have followed them. Considering America’s dependency on imports, part of any stimulus package that reaches the consumer will bleed off to foreign countries.
Generally, when countries acquire more debt than they can service, they inflate away the debt. If foreign creditors do not save the Obama administration, the Treasury will print bonds and give them to the Federal Reserve, which will issue money.
The inflation will be severe, particularly as Americans will not be able to pay for the imports of manufactured goods from abroad on which they have become dependent. The exchange value of the dollar will decline with the domestic inflation. Once inflation is off and running, the printing press dollars will only have goods made in America to chase after. The real crisis has not yet begun.
Paul Craig Roberts | The Crisis Has Hardly Begun
Trust me ... him. Whoever.
Back in March 2003, when the first U.S. Marine Corp boot crossed the line in the sand dividing Kuwait and Iraq, millions called an end to U.S. hegemony. What we see today was determined back then.
Early in November 2005, mythic former-CIA asset Osama bin Laden proclaimed:
We gained experience in guerilla warfare and in conducting a war of attrition in our fight with the iniquitous, great power, that is, when we conducted a war of attrition against Russia with Jihad fighters for 10 years until they went bankrupt, with Allah's grace; as a result, they were forced to withdraw in defeat, all praise and thanks to Allah. We are continuing in the same policy — to make America bleed profusely to the point of bankruptcy, Allah willing. And that is not too difficult for Allah.I guess today it's a case of Mission Accomplished.
Alternatively, you could think of it as Dubya's parting shot. He and his fellow travelers got what they wanted. We merely got what we deserved.
Market in Tatters — Dow Bludgeoned to 7553
... by auto dealers without shame.
Ah well, we saw it coming, didn't we? By the bell Thursday, the S&P 500 had plummeted 6.7 percent to a '97 low.
Looks like the chickens are finally finding their flight path. They're coming home in droves.
Cluck cluck ...
Christ, I don't believe it can get any worse than this. Brokers are weeping openly and slashing their wrists on the trading floor. It's embarrassing.
And why the hell is GM still listed on the Dow?
I see FOXNews tracked down Ayman al-Zawahiri (Al Cader's 2iC) for comment on the above. A talkative chap — he lectures Obama at length, he finally reiterates the message from The Man to The American People:
As for my final message, it is to the American people. I tell it: you incurred defeat and losses from the foolish actions of Bush and his gang, and at the same time, Shaykh Usama bin Ladin (may Allah preserve him) sent you a message to withdraw from the lands of the Muslims and refrain from stealing their treasures and interfering in their affairs. So choose for yourself whatever you like, and bear the consequences of your choice, and as you judge, you will be judged.I'd listen to these buggers. They mean business. When they speak of consequences, they're speaking Chalmers Johnson-type shit. The Dow's looking pretty reasonable right now at 7,550 but you never know ...
Were I The Kenyan, I'd pack my bags and leave Kandahar by morning. It'd be nice to know there's still a global economy worth saving.
