Wall Street braced for sharp drop

“U.S. stock futures fell sharply as increasing worries about the finances of some European governments triggered deep losses in overseas markets,” Tomi Kilgore reports for The Wall Street Journal.

“Dow Jones Industrial Average futures dropped 107 points to 12359, while Standard & Poor’s 500-stock index futures slumped 12 points to 1316 and Nasdaq 100 futures lost 22 points to 2322,” Kilgore reports. “Changes in stock futures don’t always accurately predict stock moves after the opening bell.”

Kilgore reports, “European bourses were broadly lower after Standard & Poor’s cut over the weekend its outlook on Italy’s credit rating to negative from stable, and after Spain’s ruling Socialist party suffered heavy losses in regional elections. A volcanic eruption outside of Iceland, which restricted flights over the island, also dented sentiment.”

Read more in the full article here.

28 Comments

  1. As always, European socialism fails again.

    The definition of insanity is doing the same thing over and over again and expecting different results.

    Teach a man to fish and you feed him for life. Feed a man a fish a day and he votes democrat. And, eventually, the country fails.

      1. “European bourses were broadly lower after Standard & Poor’s cut over the weekend its outlook on Italy’s credit rating to negative from stable, and after Spain’s ruling Socialist party suffered heavy losses in regional elections.”

        comma and.

        “European bourses were broadly lower after Standard & Poor’s cut over the weekend its outlook on Italy’s credit rating to negative from stable, and after Spain’s ruling Socialist party suffered heavy losses in regional elections.”

        S&P did not cut the rating because the socialist morons finally got the boot.

        European bourses were broadly lower after Spain’s ruling Socialist party suffered heavy losses in regional elections probably because they realized that the free ride was over and reality would be back in effect, i.e. people paying their way instead of charging it to future generations in the name of an unattainable utopian mirage that runs counter to human nature and can therefore never exist, Obama-lover.

    1. Tell a man that the fish will eventually be free if he supports tax cuts and he votes Republican.

      If Republicans had real guts, they would push for a simplified tax structure for U.S. citizens with no write offs *and* they would end their social engineering with tax breaks for corporations. If you want to limit Government influence in the business sector, then walk the walk and end the subsidies.

    2. say what you want, but still the Euro kicks the US dollar’s butt. explain that one away.

      In case you didn’t notice, some US states have embarassing debt problems as well — why do you not mock those states too?

      no country is 100% capitalist, and no country is 100% socialist. if you can’t find middle ground, then you must be an extremist.

  2. “Teach a man to fish and you feed him for life. Feed a man a fish a day and he votes democrat. And, eventually, the country fails.”

    Give a man a fish and he eats for a day. Teach a man to fish and he smells bad the rest of his life.

  3. What will drive the Market is the strength of the US Dollar. As the Dollar begins to strengthen, the Market will sell off. It’s the Dollar rally this AM that is causing today’s weakness.

    1. Why do you think the USD is going to strengthen significantly? The US economy is not only in the same sort of shit, its impact on the world is greater so, in short order, smug posters will be eating crow and the world will be wringing its hands.

      For its first 200 years, the US managed to clock up a foreign debt of about one trillion dollars. Under eight years of Shrubya, that rose to TEN trillion dollars. Now, under Obama, it has risen further to 14 trillion dollars. This is simply unsustainable. In spades!

      Playing the blame game is a waste of valuable brainpower. The real villains (in every country that is currently or soon in the shit) are the people themselves. They want this, they want that, they want the other. The public in any country want it all and they want it now. Gutless governments yield. Those that won’t are quickly voted out by the self-flagellating morons who vote in a new bunch who promise to be more obliging.

      For decades, maybe centuries, politicians of EVERY stripe have given in to unreasonable demands and expectations, in the hope that, by the time the shit hits the fan, they will be retired. “Leave it to the grandchildren to sort out”. Well, judgement day is here now. We are the grandchildren!

      If you partisan posters think your side would be any different, good luck. You obviously haven’t yet learned the simplest facts of political life. Go on, vote Obama out. See if your man (or woman) can do any better. Of course he won’t but, thank god, you’ll still have your Mac on which to post critiques. But why don’t you do the honorable thing and run for office yourself instead of standing on the sidelines like cowards or morons, and posting shallow crap?

      1. The situation could have been much better today if we had avoided the second war (Iraq) and focused on ending the first war (Afghanistan) earlier.

        No matter how you slice it, U.S. military spending is unsustainable and I do indeed blame the previous administration for making a bad situation even worse.

        With respect to social spending, both parties have been ducking the difficult and necessary decisions for years. As a result, the consequences of the potential fixes are becoming increasingly painful. On the topic of Social Security, eliminate early retirement at age 62 and begin raising the age for full retirement from 65 to 67 or higher. Unless we are willing to support higher payroll taxes, these steps have to be taken. Fewer people used to collect Social Security payments, and those that did collected them for a much shorter period of time. We now have more retirees who are living longer, and fewer people are paying into the system relative to the number of retirees. Either cut benefits or raise taxes, but pay as you go! Medicare and Medicaid are more difficult to fix for the long term. But we cannot keep cutting payments for doctors’ services and expect doctors to keep on seeing those patients, sometimes at a loss.

  4. @Tapped out in Greece and John.

    Not the socialists in Greece but their conservative governments caused the Greek problems. For your information the whole western world financial disaster was caused by the deregulation efforts of the Reagan and Bush administrations.
    It is too easy to blame European socialists.

    1. WRONG!!! Way to try and re-write history.

      Anybody with only a partial brain knows that the principal cause of the financial disaster was US government policy on housing.

      Without the changes they forced on Fanny/Freddy (buying subprimes) NONE of this could have happened.

      Once banks realized they could originate any piece of crap mortgage and immediately sell it to Fanny/Freddie without any concern for the quality of the loan, we were doomed.

      1. If you’re talking about this:

        “In 1995, the GSEs like Fannie Mae began receiving government tax incentives for purchasing mortgage backed securities which included loans to low income borrowers.” — wikipedia (there is more detail there if you want it)

        I’d point out that, though Clinton was the President in 1995, both the House and Senate were Republican controlled (having won the Houses in the 1994 elections) and would remain so for the next 12 years, or until the 2006 elections. The Republicans would control both Houses of Congress and the Presidency for 6 years during this time.

        Given this, I think at best you can blame both parties.

    1. Any American who thinks he knows what European(or rest-of-the-world) socialism, means, is leaking smelly air. As for rest-of-the-world economic nous, I give up.

    2. Amen from a godless liberal.

      Michel Moore was right when he said the American eagle has two right wings- one just farther to the right than the other.

      For those of you that think the MSM is liberal ( what an effing joke ), may I suggest reading The Nation, Mother Jones, The Progressive or done other REAL liberal press. WaPo, NYT, The Nets & CNN are all villager insiders that suck up to the establishment.

  5. Wall Street is a casino and you aren’t the house.

    It’s the home of heads I win, tails you lose.

    If you are an individual investor remember that you areplaying a non-conference road game with crooked refs.

    1. “Interesting” – yeah, my ass.
      It might also end up in a disaster of epic proportions where the 1929 crash will look like a child’s birthday party.

      The political system in the US seems to be unable to tackle this – even less so than Greece, where the latest government finally had the guts to come clean with the truth.
      While it’s not completely impossible to pay back all the debt and the unfounded liabilities – the sacrifices that you Americans will have to make for this are absolutely horrible.
      The “solution” Germany found in 1923, when confronted with an insurmountable amount (final payments were scheduled to be in 1992 or so, IIRC) of debt and liabilities – inflation – also wiped out the middle-class and created the foundation for the worst tragedy in human history.

      It’s insane. So much money, spent on bullets, consumer electronic (hello Apple) and 2nd-rate cars….

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