Stocks slid worldwide, sending the Dow Jones Industrial Average below 7,000 for the first time since 1997, and Treasuries rose after Warren Buffett said the economy is in “shambles” and American International Group Inc. posted the largest corporate loss in U.S. history.
Citigroup Inc. tumbled 20 percent as AIG posted a $61.7 billion quarterly loss and HSBC Holdings Plc said it needs to raise capital, triggering the worst plunge in U.K. banks since at least 1985. Exxon Mobil Corp., the world’s biggest company by market value, fell as oil slid 10 percent. General Electric Co. sank below $8 for the first time since 1994.
The Dow decreased 299.64 points, or 4.2 percent, to 6,763.29. The S&P500 Index dropped 4.7 percent to 700.82, it slowest close since October 1996.
(Source: Bloomberg / Wall Street Journal)
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8 Responses
Warren Buffett said the economy is in “shambles”
That’s REALLY SCARY!
Buffett is a world-class investor, and he has the inside scoop.
Those guys in Washington had better stop playing political games with all the Treife Pork-Barrel appropriations, and get down to serious business.
This is no time to go on a spending spree.
Amazing how Obama said when he was campaigning he will stop all the pork barreling and in his budget there is over 9,000 !!! I agree when Obama says you have to spend to stimulate the economy. But it would just be cheaper to give money straight to citizens thans to these special interest groups that will use it for research in Iowa on nothing
Now is the time for a spending spress. Medical care for the poor, many of whom were privately insured and lost their jobs, will makes American companies more competitive with countries where the government has always provided medical care. A federal takeover over or subsidy of unemployment insurance keeps people from starving, and relieves the states.
During the last depression there was a tendency of cut back on public spending, which is what made the depression so “great”. While excess spending (and paying for it with the “printing press” rather than taxes) won’t end a depression, it will make it much more bearable.
#4: Here are a few that a simple Google search found:
* $200,000 for “Tattoo Removal Violence Prevention Outreach Program,” pg. 283;
*Maine lobster earmark in the omnibus, pg. 173;
*$5.8 million earmark for the “Ted Kennedy Institute for the Senate…for the planning and design of a building & an endowment,” pg. 232;
*and National Council of La Raza, $473,000 earmark from Sens. Bingaman and Menendez, pg. 212.
And many more can be found here: (If YWN will allow them to post my link to the Heritage.org site)
http://www.heritage.org/Research/Budget/upload/porktable.html
to #1 just because warren buffet said that the economy is in shambles you think its scary? no matter who said what face reality- the economy is falling and yes that is pretty scary situation – even without warren buffet saying so! and yes i agree its not a time to go on a shopping spree with the economy that we are unfortunately in.
i can see that everybodys scared and its deffinitly normal to be, but as jews i think were forgetting one thing and that is who realy controls the money and who realy decides how much parnasa were gonna have. i think the answer to this recession is to do our hishtadlus, daven, and have the right emuna because thats all we can do and thats what realy counts
akuperma,
The Great Depression lasted so long because of all the wasteful spending done by the government and FDR. It was his own Treasury Secretary who said in a congressional hearing that it lasted longer with no change in unemployment due to what was done.
The government CANNOT make jobs, they can help stimulate jobs by offering incentives to employers to hire people. The way to do that is with tax cuts or any other incentive. Being that the current administration is only interested in growing govt even bigger they want to OWN the business – hence they are socialist!
bacci40,
Its really a RAT and the name is PELOSI.