Bikinis one one staion Elton onanother Wall Street meltown on another. -- jotter

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Date Posted: 16:14:01 10/11/08 Sat
Author: No name
Subject: Bikinis one one staion Elton onanother Wall Street meltown on another.
In reply to: 's message, "U.S. Stocks Tumble, Sending S&P 500 to Worst Drop Since 1933" on 14:46:05 10/11/08 Sat

>U.S. Stocks Tumble, Sending S&P 500 to Worst Drop
>Since 1933
>
>By Eric Martin
>
>Oct. 11 (Bloomberg) -- U.S. stocks plunged, sending
>the Standard & Poor's 500 Index to its worst week in
>75 years, on concern the credit crisis will spread
>from banks to consumer companies and energy producers,
>triggering a global recession.
>
>Financial firms in the S&P 500 fell to an almost
>12-year low, led by Morgan Stanley, on speculation
>they're running short of money as lending markets
>freeze. General Motors Corp. and Ford Motor Co. slid
>more than 45 percent as S&P said the carmakers may be
>forced into bankruptcy. Exxon Mobil Corp., the largest
>energy company, lost a fifth of its value as oil
>prices dropped below $78 for the first time in a year.
>
>The S&P 500 dropped 200.01, or 18 percent, to 899.22,
>the lowest since April 2003. The Dow Jones Industrial
>Average lost 1,874.19 points, or 18 percent, to
>8,451.19 for the biggest weekly slide in the history
>of the 30-stock index. The Russell 2000 Index of
>small-company stocks fell 96.92, or 16 percent, to
>522.48. The MSCI World Index of 23 developed countries
>lost 20 percent, the most since records began in 1970.
>
>``What we have is a slow-motion crash,'' said Robert
>Arnott, founder of Pasadena, California-based Research
>Affiliates LLC, which manages $39 billion. ``In the
>space of 10 days we've had a 25 percent drop -- that's
>a crash. It's slow- motion compared with 1987 or
>1929.''
>
>The S&P 500 has fallen 39 percent this year, led by
>financial companies, as losses tied to the collapse of
>the subprime mortgage market topped $630 billion. The
>benchmark is poised for its worst annual performance
>since 1937.
>
>Financial Shares Plunge
>
>A gauge of banks and insurers in the S&P 500 fell 22
>percent this week to the lowest since December 1996.
>Credit markets stayed frozen as the cost of borrowing
>in dollars in London rose to the highest this year,
>according to the British Bankers' Association.
>
>Morgan Stanley plunged 60 percent to $9.68 as Moody's
>Investors Service said it may reduce the U.S.
>investment bank's credit rating on concern the
>financial crisis threatens earnings and investor
>confidence. Goldman Sachs Group Inc. dropped 31
>percent to $88.80.
>
>The banks retreated as a restriction on short selling
>for most financial shares expired on Oct. 8. John
>Mack, Morgan Stanley's chief executive officer, last
>month lobbied the Securities and Exchange Commission
>to ban the practice, arguing that it was driving down
>the company's stock. Short sellers borrow stock and
>sell it, hoping to buy it back at a lower price.
>
>Ford, GM Slump
>
>Bank of America Corp. slid 39 percent $20.87. The
>lender cut its dividend in half and sold $10 billion
>in common stock at a discount. Citigroup Inc. fell 23
>percent to $14.11 after Wells Fargo & Co. trumped its
>bid to buy Wachovia Corp.
>
>Ford dropped 51 percent to $1.99 and GM lost 46
>percent to $4.89. S&P said it may cut the companies
>debt deeper into junk. ``Macro factors could overwhelm
>them at some point,'' Robert Schulz, S&P's lead
>automotive credit analyst, said in a Bloomberg
>Television interview. The companies said they have no
>plans for a bankruptcy filing.
>
>Exxon tumbled 20 percent to $62.36 and led energy
>producers to a 25 percent drop, the steepest decline
>among 10 industries in the S&P 500. Oil fell 17
>percent for the week to $77.70 a barrel on speculation
>the financial crisis will reduce demand.
>
>``The markets have melted down in front of us,'' said
>Robert Weissenstein, who oversees $125 billion as
>chief investment officer at Credit Suisse Holdings in
>New York. ``People aren't going to pay anything for
>risk and they're running in every direction from any
>asset that could be volatile. It's as disruptive an
>environment as I've ever seen.''
>
>Metals Producers
>
>Alcoa Inc., the largest U.S. aluminum producer,
>suffered its biggest one-day decline in more than 20
>years after third- quarter profit trailed analysts'
>estimates and the company suspended a share-repurchase
>program because of the worsening debt markets. Alcoa
>lost 42 percent to $11.25 for the week.
>
>U.S. Steel Corp. dropped 30 percent to $44.59 and AK
>Steel Holding Corp. lost 46 percent to $11.03. Goldman
>Sachs Group Inc. slashed its 2009 steel price forecast
>29 percent and lowered recommendations on some
>steelmakers, citing the slowdown in emerging markets
>and difficulty in financing new projects.
>
>Mall owner General Growth Properties Inc. plunged 50
>percent to $4.82 on concern it won't be able to repay
>debt. XL Capital Ltd. lost 64 percent, the most in the
>S&P 500, to $5.43 and led a 28 percent decline in a
>gauge of insurers on concern investment losses will
>curb results.
>
>VIX Record
>
>Credit and recession concerns overshadowed
>unprecedented coordinated interest-rate cuts by the
>world's largest banks. The Federal Reserve reduced its
>benchmark interest rate by 0.5 percentage point to 1.5
>percent. The European Central Bank lowered its key
>lending rate by half a point to 3.75 percent.
>
>The benchmark index for U.S. stock options surged 55
>percent to 69.95 and closed at a record each day. The
>VIX, as the Chicago Board Options Exchange Volatility
>Index is known, measures the cost of using options as
>insurance against declines in the S&P 500. It averaged
>59.43 this week, almost triple the 22.39 average in
>its 18-year history.
>
>The S&P 500 has declined for eight straight days, its
>longest losing streak since 1996. This week's drop
>pushed both the S&P 500 and Dow down more than 40
>percent from their peaks last October. The S&P 500
>ended the week trading for 17 times reported earnings
>of its companies, the cheapest valuation in more than
>a year.
>
>Eight stocks in the S&P 500 rose for the week. Dynegy
>Inc., a Houston-based power producer that has lost 47
>percent of its value this year, gained 25 percent to
>$3.75 after boosting output at a California generating
>unit.
>
>Sales at U.S. retailers probably dropped in September
>as mounting job losses, plunging home prices and the
>deepening credit crisis shook consumers, economists
>said before reports next week.
>
>To contact the reporter on this story: Eric Martin in
>New York at emartin21@bloomberg.net.
>
>Last Updated: October 11, 2008 08:00 EDT

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AM 96---Taliban desperate roadside Bombs Pakistanis John Michael HowsonOct 12th 2008 -- No name, 16:16:39 10/11/08 Sat