New York – Stocks slumped for a third straight session Friday, on worries that the White House’s bank plan and China’s lending curbs will mean a broader cutback in lending. Questions also arose over whether Fed Chairman Ben Bernanke’s term will be renewed.
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Stocks were also vulnerable to a pullback after surging 3% in just over two weeks, with the major gauges having touched 16-month highs on Monday.
In the three day selloff, the stock market, as measured by the broad S&P 500, has lost 5%.
Wall Street had seen its worst day in months on Thursday, with all three major gauges ending in negative territory for the year. It was the second big down day in a row, with major gauges losing the 3% that had been gained in January.
Selling began Wednesday on reports that China has asked banks to slow the pace of lending this year in an attempt to get ahead of inflation.
“There’s still a lot of frustration with the big banks and I think there’s a belief that this (Obama) bank plan is not necessarily going to help investors,” said Gary Webb, CEO at Webb Financial Group.
He said that while the announcement indicates banks won’t be able to pass on any additional costs or fees to consumers, there’s a sense that they will find creative ways to pass the costs on anyway.
“I also think this is an emotional reaction to the news and that by next week, as people have processed it more, you’ll see stocks recovering,” Webb said.
Thanks to Obama radical left wing agenda. He’ll probably blame it on bush!
“Be fearful when others are greedy, and greedy when others are fearful.” — Warren Buffett.
Halevai the Dow Jones should drop to 4000 and housing prices should drop to a third of their current value too.
The less money that the rich have to bid against you for items the cheaper those items become and the more parity there is between you and them. The higher the stock market goes the more almost every single rare item will cost. The economy needs people working with each other, not relaxing off of their dividends and putting YOU to work for them.
So far as housing is concerned, it’s important for a human being to have a house. the “housing crisis” REALLY is that millions of Americans not only OWN no home but can’t even properly afford rent – not that home owners who have a fine ole place to live happen to own a home that’s worth less than it was worth nechtin.
Halevai housing prices should drop so much so that every Yid (nu, and every goy too) can live in his own home, ish tachas gafnoi… v’ein macharid.
Unfortunately Obama is almost as owned by the wealthy as Bush was. If he wasn’t he would have been against the bailout and actively against the illegality of shortselling during “the crisis” and would have allowed the stock market and the housing market to plummet.