Tuesday, January 22, 2008

Black Tuesday?

Breaking Update: Fed cuts key interest rate three-quarters of a percentage point. Investment types say this means the government understands the severity of the situation.

I received an email from a friend this morning who is warning of a Black Tuesday in the financial markets. He has been investing for 25 years and knows the markets ... and his warning is to watch the opening bell today to see what happens. Yesterday's Asian markets fell even as Wall Street was closed for the Martin Luther King holiday.

He wrote:
January 2008 is acting a lot like October 1987. Down every day, options expire on Friday, crash on Monday. We couldn't crash on Monday because of the holiday but come Tuesday morning, look out.
His prediction:
As of 10:02 AM Monday morning the S&P will be down 47 points. This translates to the dow falling 350 to 400 points. The Bush PPT ( Plunge Protection Team) will be working overtime today. Looks like the S&P will trade today on Globex. Link here.
He know this stuff way better than I so his words are a bit chilling. Fox Business News is covering it indepth this morning. More on the stock market here with these words:
Wall Street is facing what could be one of the ugliest trading days since Sept.11 after global markets went into a selling panic this week.
Perhaps the worst will not happen. We shall know by the close of business today.


Truth-teller said...

But wait! Weren't you crowing about Dow 14,000 a few months ago? If that meant Bush's handling of the economy was wonderful, doesn't this market mess suggest exactly the opposite? Just asking.

SWAC Girl said...

I was not "crowing" about the 14,000 mark but was publicizing what the mainstream media would not -- that the economy was doing well.

I saw where you had been in my stats today looking at that post so was expecting this comment.

As with everything, there are ups and downs. George W. Bush has done well with the economy the past seven years. It looks as if this trend may be about to end and we will go through another cycle of "down" markets.

You must be very young if you cannot remember any other times when the economy has been up and then down. I can remember the 70s, 80s, 90s, and now. In the late 70s/ early 80s under Jimmy Carter house interest rates were at 18%; I felt fortunate to get a 12%mortgage at that time.

My mortgage interest rate now is 5.5%. Sweet. Thank you, President George W. Bush.