U.S. stocks slid and the S&P500 Index plunged to its lowest level in 11 years after economic reports depicted a deepening recession and lawmakers postponed a vote on a plan to salvage the auto industry.
The S&P500 Index extended its 2008 tumble to 49 percent, poised for the worst annual decline in its 80-year history. Chesapeake Energy Corp. and National-Oilwell Varco Inc. slid more than 21 percent as crude sank to a three-year low as the economic slump crushes demand. JPMorgan Chase & Co. tumbled 18 percent and Citigroup Inc. plunged 26 percent as concern the recession will trigger more bankruptcies pushed the cost of insurance against corporate defaults to an all-time high.
The S&P 500 slid 6.7 percent to 752.58, under the low of 776.76 reached during the bear market in 2002. The Dow Jones Industrial Average sank 443.8 points to 7,553.48. The Nasdaq Composite decreased 5 percent to 1,317.05.
Meanwhile, oil settled under $50, touching the lowest level since May 2005 as record U.S. job losses intensified concerns of a long and deep global recession and further crushed demand expectations.
The U.S. government reported the number of workers making new claims for jobless benefits last week surged to the highest in 16 years, helping to push down global equity markets.
U.S. light, sweet crude fell $4, settling at $49.62 a barrel, marking the lowest level since May 25, 2005, when prices hit $49.58.
Gasoline prices at the pump fell again overnight nationally close to $2 a gallon, with the average price in 23 states even less than that.
According to experts gasoline might go back to $1 a gllaon in a few months.
(Bloomberg.com / MSNBC)
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7 Responses
I guess lower gas prices are a benefit of the economic crises!
Nothing wrong with oil falling more. Kayn Yirdu.
As for the markets falling, they are just selling off in anticipation of being taxed to death under Obama. Welcome to the Obama Recession.
For me it is better low prices. I paid last winter about $4.00 a gallon and when pres. clinton left office I paid .64 a gallon about 6oo% increase. and my income for the same is about 25%. So I say burech hashem and let it go down to be about 25% above from clinton time.
I agree with # 1.
There’s one “silver lining in this cloud” in that the oil prices are plunging. That means:a) all transportation expenses come within reasonable means; b) heating for the winter will be more affordable; c) air travel will come down in cost; and d) most importatntly, the Arab Muslim murderers are starving.
However, let’s not kid ourselves. This entire world financial market is hemmoraging. Heads of families are nebach losing their sources of income, and mosdos hatorah are facing their most difficult times ever.
Let’s beseech the borei olam, and commit to ONLY follow the daas torah of moreinu v’rabeinu gedolei hatorah, and to SPIT OUT all the anti-toarh sentiments, hashkofos and ideoligies that we have unfortunately allowed to infiltrate into our camp too much. In that z’chus, Hkb”h will help asnd all will be well. And our stock-houses will be filled amply.
#2 – Obama, and most Democrats, favor an income tax over a VAT or using a national sales tax. Companies that are losing money, like most of them, do NOT pay income tax since they have no income. Obama could raise the corporate tax rate to 90%, but they would still pay nothing.
Perhaps you’ve been listening to someone on the radio who doesn’t understand economics, and is a sore loser to boot.
Maybe this time MOSHIACH really will come!!!! (I’m sure people said it also during the 1929 crash/ensuing depression….which hopefully won’t happen here…)
akuperma
Obama said he will raise the Capital Gains tax. That means if you take profit on stock sold now, you won’t pay as much tax as you would when Obama is president. That’s why people are selling now, causing the market to go down.