Dow Plummets More Than 600 Points

"We are advising our clients to put everything into canned food and shotguns."

• Dow closes down 635 points
• Bank of America down 21% and Citigroup off 18%
• VIX surges 45%
• Treasuries Rally MASSIVELY In Face Of Downgrade
• More links are HERE
• And HERE

Comments

[DailyBail]

http://www.marketwatch.com/investing/index/vix?link=MW_home_latest_news

VIX surges 45%

[DailyBail]

http://www.marketwatch.com/investing/bond/10_YEAR?link=MW_story_quote

Treasuries rally MASSIVELY

[LiberatedCitizen]

The REAL Problem With The Downgrade

http://market-ticker.org/akcs-www?post=191700

[DailyBail]

China to further regulate rare-earth industry

http://www.marketwatch.com/story/china-to-further-regulate-rare-earth-industry-2011-08-08

[DailyBail]

Oil futures settle at lowest in nearly 9 months

http://www.marketwatch.com/story/oil-futures-settle-at-lowest-in-nearly-9-months-2011-08-08

[DailyBail]

Nasdaq extends losses, down 10% in 2011

http://www.marketwatch.com/story/nasdaq-leads-broad-market-retreat-2011-08-08

[DailyBail]

http://www.marketwatch.com/story/bank-of-americas-swoon-hits-financials-2011-08-08

SAN FRANCISCO (MarketWatch) — Shares of two of the largest U.S. banks flirted with 20% losses Monday, leading the financial sector and broader market down as investors fretted about the ripple effects of Standard & Poor’s downgrade of U.S. government debt.

[DailyBail]

WASHINGTON (MarketWatch) - Michael Moran, chief economist at Daiwa Securities America, said he was more confident in his prediction that the Federal Reserve would act Tuesday to try to counter the negative psychology in financial markets. Moran said the Fed would likely decide to lengthen the maturities of its balance sheet at its policy meeting to put downward pressure on long-term interest rates. The message would be that the Fed is "on the job," Moran said. Market psychology has been damaged by the discord in Congress and the downgrade of the U.S. top-tier AAA credit rating, he said.

http://www.marketwatch.com/story/fed-more-likely-to-act-tuesday-economist-2011-08-08

[DailyBail]

ECB Trichet: Markets not getting message

http://www.marketwatch.com/story/ecb-trichet-markets-not-getting-message-2011-08-08

[john]

China's Conundrum: Angry at U.S. but Trapped in Treasurys .

http://online.wsj.com/article/SB10001424053111904140604576496553310745950.html?mod=googlenews_wsj

[snip]

Frustrated as it is over U.S. debt policy, China—America's biggest foreign creditor—is expected to continue buying Treasury bonds, mostly because the alternatives for parking its giant pool of foreign reserve are limited.

Yet Beijing's angry weekend response to news that Standard & Poor's had downgraded the U.S.'s top-notch credit rating is being seen as a powerful warning signal for U.S. politicians. As the holder of more than $1 trillion in Treasurys, China holds America's financial fate in its hands.

Any significant cutback of Treasury funding by China could push up long-term borrowing cost for the U.S. government, consumers and companies. And the display of waning confidence in dollar-denominated assets could severely undermine the dollar's status as the world's primary reserve currency.

[TR]

Last week, Bubba (Who lives down the dirt) had 100 shares.He decided he could fool the market. He sold 25 shares.The market got fidgety. He sold another 25 shares. The market got skeered. He sold another 25 shares & the market panicked.
He sold the last 25 shares this morning. He said he has cash & will buy back the 100 shares when they are cheap.

BUBBA's a GENIUS!!

[john]

S&P Downgrade Only Stokes Panic into Treasury Paper

http://www.zerohedge.com/contributed/sp-downgrade-only-stokes-panic-treasury-paper

I have to wonder if someone knew this would be the result...see my 6:23 post.

[DailyBail]

IT doesn't surprise me at all John. I knew Treasuries would rally based on the fact that there was nowhere else to go today. If you were selling equities in US and Europe, your cash had to go somewhere liquid and safe.