Hey, I needed a different title than #PANIC. Already used that one. And I’m saving #DOOM for a plunge of 800 points / 8% or more. (Tomorrow! Tomorrow! I love ya, tomorrow!) Anyway…
I have a pet theory about this. Sometimes, I think Wall Street gets what it wants from politicians, expecting to feel reassured by it — but instead, investors realize, “wait a minute, I’m still freaked out,” and then they sell. I recall something like this happening after the stimulus passed and/or after TARP succeeded on take 2 (I can’t recall which, or if it was both). It happened last week after we averted default. And I think it might be happening now, with regard to the European Central Bank’s much-anticipated decision to buy Italian and Spanish bonds.
I know we Americans want to make this all about us, as per usual, but really, Europe is the primary risk at the moment, methinks. The S&P downgrade is mostly just a potent symbol; its substance is based on stuff everyone already knew. It alone shouldn’t tank the markets like this. But in combination with continued European fears, and broader economic anxieties? Yeah. This is a classic #PANIC.
[/armchair market analysis]
More pretty (ugly) charts after the jump!
Today:
The last 5 days:
Plus, parts of London are actually on fire. So it seems appropriate. Though the riots are not related to economics, but are over a shooting.
Hmmm … so the blog is renaming to the Lord of the Rings Times (to keep the LRT “brand” alive) …
The Euro-crisis isn’t helping, but this one is one we own … well, we know where the buck stops, for all that our current First Occupant is adopting as his mantra – The Buck Stops *ANYWHERE* Else, except for here (and it’s all Bush and the Tea Party’s fault, anyway) ! …
I think 800 might be a good day tomorrow. While London’s not looking like Kesselring and the boys came back (yet), I’d say that multiple cities afire _will not_ make investors happy.
FYI you should totally rerun this post re-dated for today, CNBC images and all.
What do y’all think ?
Is Thursday going to be a reprise of Tuesday – followed by Friday being a reprise of Monday and Wednesday ?