dow loses ground as economic reality takes hold

*** DOW DEATH SPIRAL™ ***

Dow Jones Industrial Average
(DJI: ^DJI)
Index Value: 9,310.99
Trade Time: 4:04PM ET Oct. 14, 2008
Change: Down 76.62 (0.82%)
Prev Close: 9,387.61
Open: 9,388.97
Day’s Range: 9,088.299,794.37
52wk Range: 7,773.71 – 14,157.40

DIVE, DIVE, DIVE!

Well Cricketeers, yesterdays party on the street has lead to today’s hangover! This from reuters:

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Wall Street slides on recession fears

By Kristina Cooke
October 14, 2008

NEW YORK (Reuters) – Stocks slid on Tuesday as fears the global economy may not avert recession slammed shares of technology and consumer companies, eclipsing a government rescue plan for banks.

Shares of Intel were among the top drags on Nasdaq as investors worried about the chipmaker’s quarterly results, which are due after the closing bell. Intel lost 7 percent to $15.80 on Nasdaq, while an index of semiconductor stocks slid 5.5 percent.

Disappointing results and outlook from soft drink company PepsiCo further fueled worries about the earnings season. The company’s weaker-than-expected earnings also deepened concerns about how consumer spending will hold up in the face of declines in home values and stocks, as well as tighter credit. PepsiCo’s shares tumbled 12.9 percent to $53.80.

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DAGNABIT! The thieving corpoRATeers are learning a basic economic truth. You can’t have a growing free market economy without profits! This gambling casino economy has been producing inflated profits based on speculation. That party is now over! The latest hair brained corpoRATe welfare bailout sceme is gonna fail too! This from cnnmoney:

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Commentary: Why this bailout is as bad as the last one

By Jeffrey A. Miron
Special to CNN
October 14, 2008

CNNMoney Editor’s note: Jeffrey A. Miron is senior lecturer in economics at Harvard University. A libertarian, he was one of 166 academic economists who signed a letter to congressional leaders opposing the government bailout plan.

CAMBRIDGE, Massachusetts (CNN) — Ten days after passage of its $700 billion bailout of the financial sector, the U.S. Treasury has announced that it will implement this program, in part, by giving banks $250 billion in return for shares of their stock.

In other words, the U.S. government will acquire a significant ownership stake in the banking sector.

The goal of this stock purchase is to “inject liquidity.” This will, in principle, improve bank solvency and increase bank lending, thereby minimizing the chance of a recession.

This approach appears to be favored by the Treasury over the previously announced strategy of buying “troubled assets” from banks. The Treasury is also planning to guarantee new bank debt and expand insurance of bank deposits.

Alas, the new approach is no better than the first. Here’s why.

If banks were fundamentally sound but temporarily in need of cash, they could sell stock on their own to private investors. Few investors now want bank stock, however, because they cannot tell which banks are merely illiquid — short of cash for new loans because their assets are temporarily sellable only at fire-sale prices — and which are fundamentally insolvent — short of cash and holding assets whose fundamental values are less than the bank’s liabilities.

This lack of transparency is a crucial impediment to new investment, and therefore to new lending.

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SONOFABUSH! In a nutshell, the corpoRATe welfare bailout won’t work because it coddles the corpoRATe criminals who caused it! It rewards the corpoRATeers for their FAILURE and the rest of us get SCREWED!

WE NEED A COMPLETE RESTRUCTURING OF OUR POLITICAL ECONOMY!

Click that link to see what need be done, then support and vote NADER for REAL CHANGE!

VOTENADER.ORG

The Telepathic Crickets™ on the ClapSotronics editorial board and I wanna see corpoRATe perp walks!

HEY, mcPain and nobama:
Open The Debates!

If you want more info on the alternative debate happening around October 16 or 17, click these links:

http://www.thirdpartyticket.com

www.breakthematrix.com

To take action on opening the debates to Independent and third party candidates CLICK THIS LINK!

Please send an email to janut janet brown the executive director of the “Commission on Presidential (non) Debates.” Below is the email I sent her. Feel free to use that one or write your own! Her email address is: jb@debates.org

Hi,

I know you and the rest of the feckless appaRATchicks in washingtOOn are busy trying to sell the Brooklyn Bridge of a corpoRATe bailout plan to us sucker taxpayers. But it would be really keen if you stopped for a second and understood that “debates” which include only the co-joined twins of the apocalypse called mcbama will amount to nothing more then the left ass cheek telling the right ass cheek that it smells bad.

After all, there is this thing called democratic process! I understand how inconvenient and annoying it can be for you in the CENSORSHIP industry, but some of us are really old fashioned and set in our ways.

We believe THAT ALL THE CANDIDATES ON THE BALLOT FOR ELECTION should be included in the debates.

This is not a request, but a demand!

I hope your 401k goes bust in the stock market crash…

I really do hope all the feckless appaRATchiks in washingtOOn lose their 401k’s in the market crash!

Don’t forget to stop by our satirical sister blog:

The Intergalactic Times

Make sure YOU WATCH THESE VIDEOS!

The scientifically impossible I do right away

The spiritually miraculous takes a bit longer

~ by ClapSo on October 14, 2008.

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