June 27, 2008
Bear Alert: Dow Drops Again as Oil Climbs Higher
Oil prices hit a new high, at close to $143/barrel today (but ended over $140/barrel), and the Dow fell 106 points to close at 11,346.41.
The NY Times reported the Dow Jones Industrial Average "flirted with bear market territory" when it fell 120 points--"The bear peeked out of its cave on Friday. And then it retreated." The Dow Jones is close to a bear market, because it's down 20% (the "threshold for a so-called bear market") from its October high.
A consultant tells USA Today, "Oil's back in favor, especially with people bailing out of the stock market." And some analysts expect oil barrel prices to rise to $145-150, while the president of OPEC thinks they could rise to "between $150 and $170 a barrel this summer."
According to CNBC, investors aren't panicking. Financial consultant Michael Kresh said, "In the backdrop of what we're looking at, with enormous spending in Iraq, ridiculous oil prices, a near collapse of the financial markets, it's not really all that bad."
Photograph of specialist Jim Belford watching the screens at the New York Stock Exchange by Richard Drew/AP
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I can't wait for the oil crash. It's going to be so sweet.
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I've always wondered why does the press always focus on this reaction from these types.
is he losing his house? getting evicted? going to be out on the street with nothing?
at least Pb is still cheap.
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>>>it's not really all that bad."
Unless your mutual funds have dropped $XXXX over the past few months. Ahhh, it's only money.
www.forgotten-ny.com
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The dude is probably farting and his colon is clogged. Newsmedia types love to paint a picture.
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We are all fucked. You, me, everyone.
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So they are clearly no longer denying that we are heading for an economic collapse? HAH!
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remember when the Dow at 10,000 was a celebration?
now a ninth tenths of a percent drop warrants the coming of an economic apocalypse.
at least Pb is affordable.
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Remember when the Dow rose alonside oil? Before oil hit $100 a barrel? Now the Dow drops as oil surges. This is the bubble. Money that would go into equities is chasing that mystical $200 per barrel of oil. The same assholes that go on CNBC and warn the "small investor" to avoid "market timing" are doing...guess what? Market timing. Only, the hedge funds can hedge those big oil bets with what? what else is there to balance the risk? Collapsing stocks? T Bills (at 2%)? They got fucked the minute they doubled down on oil. Now they're praying for war with Iran, or the next attack in the Nigerian Delta. And they're writing checks to the guy who wants to "bomb bomb bomb, bomb bomb Iran". October Surprise, anyone?
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I just can't believe it's finally happening, I've been prepping for this for months now.
Autumn surprise indeed.
And then WW3.
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I think that's a shot of Jeremy Piven from HBO's new show about hedge funds.
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These people worked so long and so hard to make a living. It's time for the rooster to come home and set.
How many people have been screwed over by these guys?
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Unless you are an inside trader, stocks suck!
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Look on the bright side:
Beer is still relatively cheap. In some places you can still get 1$ PBR pounders. Ten to fifteen of those and you'll forget where your car is parked. Your car gets impounded, and you lose all your ID so it's a huge ordeal to get it out. After you get the car out it's been a month. You've been walking and riding a bike everywhere. You feel better, look better, and impress girls with tattoos by drinking cheap beer. Your sex life has gone from zero to a some in a matter of weeks. Plus, think of how much money you saved on gas! (I think this story takes place in RedHook)
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All that beer might give you lots of gas which
you will expel all day & night creating then more
green house warming.
Drink straight liquor,it's quicker.
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The funny thing is that most I bankers would be sitting pretty if not for egoistic relative deprivation. It's this disease that causes them to buy multi-million dollar homes when a nice half mil home would have sufficed. They suffer from the same fallacy of hedging their bets like the hedge funds they manage thereby causing calamity when the wind blows too hard.
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Strange thing about these investment bankers is it's not their money they are playing with. It's like going to the casino and you are given chips to play. If you win great, you get to keep the chips. If you lose just go back and get more chips.
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Our firm just laid of 10 analysts. But they're all retiring after the 5 year run we've had. It's their nanny's that are getting the real pink slip.
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Wow some amazing lack of knowledge here.
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true, thankfully Pb is still cheap
for the rich and the poor. molon labe.
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We're overdue for an economic "reset" with real estate prices and other components of the global economy still on the inflated side.