The BG will regurgitate on the front page:
"Worldwide anxieties send stocks sinking; Dow posts its worst 2-day period since ’08" September 23, 2011|By Steven Syre, Globe Staff
Stock prices plunged in the United States and around the world yesterday as investors became increasingly gloomy over prospects for the global economy and the possibility of another recession.
The stock market rout began Wednesday afternoon with words of warning on the economy from the Federal Reserve, which unveiled its plans to stimulate growth. But the nose dive extended overseas and sent US markets sharply lower for a second straight day. The Dow Jones industrial average fell 527 points before recovering a bit, closing down 391.01 points, or 3.5 percent, to 10,733.83.
Including a plunge of 283.82 points on Wednesday, the Dow average suffered its worst two-day decline since December 2008, when panicky financial markets went through an extended free fall.
The Fed comments that initially sent stock prices plummeting were far from dramatic, warning that the economy faced “significant downside risks’’ and citing “global financial strains,’’ in particular. None of that came as news. But delivered by Fed policy makers, the message caught the attention of the world.
Well, of the mouthpiece media anyway. It's the Globe's front-page lead.
“I think the Fed saying it, even though everyone knows it, is meaningful,’’ said Erik Weisman, a portfolio manager at MFS Investment Management in Boston. “The Fed doesn’t say things like that lightly. They know if they say something negative the markets could react. I think it tells you how concerned they are.’’
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The cautious words from the Fed, evidence of a slowing economy in China, and ongoing anxiety over Europe’s ability to manage its sovereign-debt crisis all helped to drive investors out of riskier holdings and into very-low-risk alternatives.
Traders seeking safer havens drove interest rates on US Treasury securities - which move in the opposite direction of prices - to extraordinary lows. Investors buying 10-year Treasury notes yesterday accepted a paltry yield of 1.72 percent, a record low. The yield on 30-year Treasury bonds fell to 2.8 percent, the lowest since the darkest days of the financial crisis at the end of 2008.
Yup, you can always depend on the American taxpayer to ante up -- can't you?
Stock market declines were broad-based yesterday, but shares of companies that depend on a growing economy were among the hardest hit over the past two days. Industrial and commodity-based companies were the worst performers yesterday among the stocks that make up the Dow. FedEx Corp., a business that rises and falls with the economy, cut profit forecasts, and its shares fell more than 8 percent.
For several years, companies around the world have been able to post extremely strong profits despite tepid economic growth - a key factor in the stock market’s climb since 2009. But some investors worry the economy will finally catch up to businesses and slow profits.
As workers around the world have been savaged. Think there is a connection?
“Remember the picture of Atlas, the guy who was holding up the world by himself? He just got a gigantic charley horse,’’ said James Weiss of Weiss Capital Management in Concord.
Many other investment managers believe markets are headed for an extended bumpy ride that won’t end until economies are able to generate more jobs....
There are no more new jobs to generate; it's what they are calling the "new economy."
Despite the Fed’s unusually pessimistic and public concerns about the economy, two US economic reports issued yesterday, both based on actual business and financial activity, were not especially dire. Yet they seemed to get lost in the stampede of stock sellers.
Pfft.
The Conference Board’s index of leading indicators increased by more than its forecast in August. The index, which measures the outlook for growth over the next three to six months, increased by 0.3 percent, following a gain of 0.6 percent in July.
Meanwhile, the weekly report on new jobless claims in the United States was slightly higher than forecast, but close to the expected target.
Talk about getting lost (sigh).
“In terms of actual data, [the reports] didn’t signal chaos throughout the world,’’ said John Cogswell, a portfolio manager at Baystate Wealth Management.
Yes, everything's all right, yes, everything's all right, yes, everything's all right.
--more--"
Close your eyes, close your eyes, and relax.
"Fed bank chief fears latest effort won’t help" September 28, 2011|By David Koenig and Paul Wiseman, Associated Press
WASHINGTON - Richard Fisher, president of the Federal Reserve Bank of Dallas, said he opposed the Fed’s latest attempt to boost economic growth because he fears it won’t work - and it could scare consumers and squeeze bank earnings.
Yeah, the poor, billions-per-quarter in profits banks, boo-hoo.
In a speech in Dallas yesterday, Fisher said the action taken last week and other recent Fed moves “are likely to prove ineffective and might well be working against job creation.’’
As it is intended to do. Let's not delude ourselves regarding these vampire/vultures any longer.
At its Sept. 20-21 meeting, the Fed’s policy making committee voted 7-3 to lower mortgage and other long-term interest rates by reshuffling its $2.9 trillion investment portfolio. The Fed will shift $400 billion from short-term to longer-term Treasurys through next June.
Pushing around a bunch of paper, huh?
Fisher was one of the three voting members to oppose the decision. So far, he’s the only one to publicly explain his vote. The other dissenters were Philadelphia Fed president Charles Plosser and Minneapolis Fed chief Narayana Kocherlakota.
In August, the three also opposed the Fed’s plan to keep short-term interest rates near zero through mid-2013, as long as the economy stays weak. It was the highest level of dissent at the Fed in nearly two decades. The dissenters have expressed concern that the Fed’s easy money policies risk igniting inflation....
Already has if you go to any supermarket in AmeriKa.
Businesses and banks are already sitting on plenty of cash, Fisher said....
That's where the bailout money went, folks.
Fisher said last week’s move, dubbed Operation Twist, could prove counterproductive. It might signal to consumers that the Fed believes the economy is “in worse shape than they thought’’ and prompt them to hoard money, he said....
Like businesses and banks?
Is that banking puke really blaming the screwed-over consumer?
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More BS from the BG:
"GDP data ease recession jitters; Signs of growth, jobless report are bright spots" September 30, 2011|By Martin Crutsinger, Associated Press
WASHINGTON - The economy is showing signs of modest improvement - not enough to reduce high unemployment but enough to ease fears that another recession might be near.
Fewer people applied for unemployment benefits last week, though some of that resulted from technical factors.
Above I was told.... sigh.
And the economy grew slightly more in the April-June quarter than previously estimated. Growth is also expected to tick up in coming months.
Lie after lie after lie after lie after lie..... arrrrrrggggghhh!!!!!!!!!!!
Investors drew some hope from the latest data....
Some of the news yesterday was not encouraging....
I'm tired of wading through it, sorry.
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