Economic Roller Coaster

[bjarvis]

Yesterday, while the US markets were closed for the Martin Luther King Jr holiday, the world's stick stock markets tanked. Badly.

I swear, I take one day off work and the planet goes to hell.

This morning's market openings were hideous (the Dow off 384 points) but the Fed cut interest rates by 3/4 of a percentage, the largest single cut since 1984. The Dow has rebounded to being down "only" 158 points at the moment.

It's gonna be one of those years...

Comments

[jss]

CNBC reported the DJIA session low in the first hour of trading as -464, not -384.

Not only is it the largest cut since '84, it's an intermeeting (thus "emergency") cut.

[bjarvis.livejournal.com]

I was only eye-balling it off of Yahoo, not searching for a definitive minima-du-jour. When I glanced just after completing a couple of work tickets --see! I do work for a living!-- it was off 384 at that point and seemed to be rebounding.

Just glancing again, Yahoo reports the Dow off 190 points so rebound may simply be a dead cat bounce rather than an effect of the rate cut.

*arms flailing on the ride* Wheeeeee!!! :-)

[jss]

I suspect it's more profit taking, though the CBOE volatility index (^VIX, which CNBC was calling the "fear index") was up 8.6 points (about 32%) at some point this morning.

It's definitely going to be an interesting ride.

[bearfuz.livejournal.com]

Stick markets? I'm getting a visual here that may not be what you intended. ;-)

[bjarvis.livejournal.com]

Oops! Good catch, thanks.

[dr-scott.livejournal.com]

It's really your fault. Your work on IT systems for a company deeply involved in the subprime mortgage crisis contributed to stealing the food from poor children's mouths.

[channeling the spirit of the campaign debates!]

[bjarvis.livejournal.com]

Yes, it's all part of my evil plan! Now fetch me a chocolate sundae *NOW* or I'll unveil still more portfolio write-downs! Bwahahahaha!

And be sure that sundae has walnuts, not cheap-ass unsalted peanuts.

[billeyler.livejournal.com]

Yes, it is...last year, I moved a large hunk of my savings over to a Vanguard stock market account. Ugh.