Well, that crucial first Wall Street operational day after the rescue, the Dow Jones Industrials on Monday (October 6) dropped a tad more than 800 points at one point—once again the WORST one day drop in history—but settled at only minus 370, at 9956, about 30% lower than a year ago. For about the tenth time over the past month in my daily blog I again underscored the danger of this metastability. The fatal fear is that we are losing control of prices.
Keep in mind, though, that the German, Paris and Tokyo stock exchanges have all sunk 31% this past year, with London at minus 27% and China (Shanghai) a staggering minus 67%. They, too, all are bailing out banks and other financial institutions. Thus, you can’t really only blame Wall Street, the White House, Congress, McClain and Obama. This seems to be a world-wide phenomenon.
Interestingly, precious metals have also dropped in the 30-70% range the past few months, even gold. Usually, investors switch to very low interest federal bonds or gold in time of coming crisis. Gold did rise a few percent today, but remains below what it was this past Friday. So there is some definite uncertainty on this reactionary front.
The U.S., though, sets the tone for the globe, and eight years of Republican free market policies no doubt laid the table for the crunch. The Bush Supreme Court, too, played their predictable hands off role by preventing state regulators from mortgage loan oversight (April 2007 decision).
Ominously my HuffPo prediction of $75/barrel oil seems to be happening, as NYMEX crude futures slipped below $90/barrel to $88.51/bbl, while the Brent Spot is now at $83/bbl. The growing world recession is reducing consumption, so there is weakening competition for the available oil. OPEC President Khelil today predicted that oil prices will continue to drop next year. Will we see $50/bbl oil in 2009? If so, don’t be surprised if all those already announced billion dollar renewable resource projects begin to lose financial support. Here we go, back to the past again.
Tropical Storm Marco has formed west of the Yucatan Peninsula in the Gulf of Mexico, could strengthen into a hurricane in 12 hours, and slam into Mexico north of Veracruz tomorrow. Note that there are now 13 named storms in both the Atlantic and Pacific. Tropical Depression Marie in the Pacific has weakened, is turning southwest and will become a remnant soon. Tropical Storm Norbert has formed just off the coast of South Mexico and could become a serious hurricane up 90 MPH or higher in two days. While currently heading for Hawaii, all models show Norbert turning north towards Baha, weakening as colder waters are encountered.
Keep in mind, though, that the German, Paris and Tokyo stock exchanges have all sunk 31% this past year, with London at minus 27% and China (Shanghai) a staggering minus 67%. They, too, all are bailing out banks and other financial institutions. Thus, you can’t really only blame Wall Street, the White House, Congress, McClain and Obama. This seems to be a world-wide phenomenon.
Interestingly, precious metals have also dropped in the 30-70% range the past few months, even gold. Usually, investors switch to very low interest federal bonds or gold in time of coming crisis. Gold did rise a few percent today, but remains below what it was this past Friday. So there is some definite uncertainty on this reactionary front.
The U.S., though, sets the tone for the globe, and eight years of Republican free market policies no doubt laid the table for the crunch. The Bush Supreme Court, too, played their predictable hands off role by preventing state regulators from mortgage loan oversight (April 2007 decision).
Ominously my HuffPo prediction of $75/barrel oil seems to be happening, as NYMEX crude futures slipped below $90/barrel to $88.51/bbl, while the Brent Spot is now at $83/bbl. The growing world recession is reducing consumption, so there is weakening competition for the available oil. OPEC President Khelil today predicted that oil prices will continue to drop next year. Will we see $50/bbl oil in 2009? If so, don’t be surprised if all those already announced billion dollar renewable resource projects begin to lose financial support. Here we go, back to the past again.
Tropical Storm Marco has formed west of the Yucatan Peninsula in the Gulf of Mexico, could strengthen into a hurricane in 12 hours, and slam into Mexico north of Veracruz tomorrow. Note that there are now 13 named storms in both the Atlantic and Pacific. Tropical Depression Marie in the Pacific has weakened, is turning southwest and will become a remnant soon. Tropical Storm Norbert has formed just off the coast of South Mexico and could become a serious hurricane up 90 MPH or higher in two days. While currently heading for Hawaii, all models show Norbert turning north towards Baha, weakening as colder waters are encountered.
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