Perfect Storm Slams Stocks

AEGeneral · #1 06-26-2008, 10:12 PM

And this is why I pulled out of the market some 18 months ago. We're still nowhere near the bottom yet.

Dow Plunges 350 as Perfect Storm Slams Stocks - FOXBusiness.com

Quote:

A fresh batch of scary headlines pushed Wall Street into full selloff mode on Thursday, pushing the Dow more than 350 points into the red and to its lowest level since September 2006.

Thursday's selloff means the Dow has lost all of its gains made over the past 21 months. In fact, the Dow has plunged more than 1500 points over just the past five weeks as the index had traded above the 13,000 mark as recently as May 20. The selling on Wall Street has come as the market grows more pessimistic about the overall economic outlook. (more)

AEGeneral · #2 06-26-2008, 11:57 PM

Wow...

Dow price hikes spur fears of inflation

Quote:

Dow Chemical Co. announced Tuesday it would hike prices up to 25 percent next month. It was the second double-digit price increase by the chemical giant in a month, as America's oil angst continues to pump inflation fears through the troubled domestic economy.

Citing a "relentless" rise in the cost of oil-derived naphtha and ethane from natural gas, Midland-based Dow also said it will add shipping surcharges in North America and close European and U.S. plants that make Styrofoam, paint ingredients and plastics because of rising expenses and weak demand.

All that comes on top of a 20 percent June price increase announced last month, and just as the Federal Reserve began a two-day meeting to determine whether broader oil-fueled inflation threatens the fragile U.S. economy to the point that interest rates must move higher.

So far, consumers have only had to cope with startling increases in food and energy items, but Dow's twin price hikes on its 3,200 products -- used in thousands of consumer items, from diapers to carpet -- (more)raise fears that any and every item on a store shelf will get more expensive.

As I was saying....we're nowhere near the bottom yet. Inflation is about to take off. The Fed will be forced to raise rates by the end of this year.

Dennis · #3 06-27-2008, 08:13 PM

Quote:

Originally Posted by AEGeneral

Wow...

Dow price hikes spur fears of inflation

[/b]As I was saying....we're nowhere near the bottom yet. Inflation is about to take off. The Fed will be forced to raise rates by the end of this year.

I have heard that raising the Fed rate actually results in cheaper long term rates (such as mortgages).

AEGeneral · #4 06-27-2008, 09:05 PM

Quote:

Originally Posted by Dennis

I have heard that raising the Fed rate actually results in cheaper long term rates (such as mortgages).

I don't know if the two have any relationship or not. I always thought that mortgage rates were completely independent of the Fed rate.

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