NEW YORK, Nov. 8, 2007
Wall Street Pares Losses
Closes Difficult Session With Late-Day Rebound; Fed Foresees Slower Economic Growth
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Play CBS Video Video The Dow's Big Drop The falling dollar, record-high oil prices, and the mortgage mess forced investors to dump stocks. That sent the Dow plummeting more than 300 points. Anthony Mason reports.
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Video Odds of Recession Rising Retail sales are slumping, the housing market is glum, and oil prices continue to rise. Are these signs of a recession on the way? Anthony Mason reports.
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Fed Chairman Ben Bernanke said Thursday he expects business growth to slow while inflation risks continue in coming months. (AP Photo)
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Interactive Eye On The Economy In-depth features on U.S. markets, taxes, employment and the Federal Reserve.
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Interactive U.S. Markets Are you a Bull or a Bear? Review the history of investing in America and learn key terms.
Investors still kept their distance from technology shares after a lackluster forecast from Cisco Systems Inc.
Stocks fell after Federal Reserve Chairman Ben Bernanke warned that a raft of economic troubles could dent business growth and after Cisco's comments touched off unease about business spending.
Bernanke, appearing before Congress' Joint Economic Committee with the Fed's economic forecast, warned of threats to the economy but didn't offer solid evidence the bank is prepared to further cut interest rates.
He stressed that the central bank was keeping all options open, saying the Fed would be closely watching economic growth and the threat of inflation.
Going forward, Bernanke said the Fed would not be "dogmatic" in what it might do.
"We will try to make judgments over time as we get more information," Bernanke said, adding at another point that there were a "lot of uncertainties" at present.
The slide seen during much of Thursday's session -- at one point the Dow had fallen another 200 points -- came a day after stocks tumbled amid concerns about continuing credit woes, a weakening dollar and rising oil prices.
There is a crisis of confidence from foreign investors losing faith in the U.S. economy and selling the dollar, which tumbled again today, and a crisis in housing that is only deepening, reports CBS News correspondent Anthony Mason.
"Unless we deal with the subprime crisis and the dollar, we can't save the economy from recession," said Peter Morici, an economist at the University of Maryland.
Investors had fresh reason for concern Thursday about toxicity within the credit markets. Morgan Stanley issued a detailed accounting of its exposure to subprime debt, pleasing investors by eliminating some of the uncertainty that has wracked Wall Street to varying degrees in recent months. But Morgan said late Wednesday its fourth-quarter profit could be reduced by $2.5 billion in write-downs related to troubles in the credit market, a reminder of the widespread damage from soured loans.
According to preliminary calculations, the Dow Jones industrial average fell 33.73, or 0.25 percent, to 13,266.29. The decline comes a day after the blue chips fell 360.92; Wednesday's decline was the third drop of more than 350 points in a month, offering the latest sign of how jittery many investors remain.
Broader stock indicators also came off their lows. The Standard & Poor's 500 index fell 0.85, or 0.06 percent, to 1,474.77, and the technology-heavy Nasdaq fell 52.76, or 1.92 percent, to 2,696.00.
Declining issues outnumbered advancers by more than 8 to 7 on the New York Stock Exchange, where volume came to a heavy 2.17 billion shares compared with 1.66 billion traded Wednesday.
© MMVII, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
Best-selling author Mitch Albom on his first nonfiction work since "Tuesdays with Morrie."
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See all 52 CommentsIf he is elected President, Ron Paul will work to abolish the Federal Reserve System as well as the IRS, returning our country to the Gold Standard. He believes, as I do, that our current Income Tax System is unconstitutional, because it is a direct tax that is not equally apportioned as The Constitution requires. Whenever taxes are raised by the federal government, it should be done as The Constitution does require--in an indirect way, which is equally apportioned. This system would benefit all of us, creating more individual wealth, and allowing us to make more decisions for ourselves about our lives. As President, Ron Paul will also work to abolish the Federal Reserve, a group of private banks, run by unelected officials, which loans our government unbacked money which they are allowed to essentially print out of thin air, making each dollar in your pocket worth less all the time, and increasing our national debt to these banks. Worse still. Most of our debt is owned by China (25%) and Saudi Arabia who finance our runaway military spending overseas. This is a threat to our nation. We need to bring our troops home from overseas, and use the trillions we would save thereby to reduce our debt, and to re-invigorate our currency. We can use this money to ensure that Social Security and other essential programs will still be solvent in the future. Vote for Ron Paul. He''s published three books on the topic of sound economics. ronpaullibrary.org
Federal Reserve Chairman Ben Bernanke appeared before the Congressional Joint Economic Committee Member, Congressman Ron Paul on November 8th, and had to face some tough criticism from Paul concerning the fact that the Fed has been increasing the money supply while at the same time refusing to raise the Prime Interest Rate in order to curb inflation and devaluation of the Dollar. Paul accused the Federal Reserve of "robbery," telling Bernanke, "There''s a dollar crisis out there and people''s money is being stolen," Paul said. "People who have saved, they''re being robbed. I mean, if you have a devaluation of the dollar at 10 percent, people have been robbed of 10 percent." Federal Reserve Chairman Ben Bernanke attempted to dispel that notion by explaining, "If somebody has their wealth in dollars and they''re going to buy consumer goods in dollars, then the only effect it has on their buying power is that it makes imported goods more expensive." Paul disagreed, reminding Bernanke, "Yeah, but not if you''re elderly and you have your wealth in CDs. Their cost of living is going-up no matter what your CPI says," adding finally, "Their cost of living is going up, and they''re hurting. And that''s why the people of this country are very upset."
If he is elected President, Ron Paul will work to abolish the Federal Reserve System as well as the IRS, returning our country to the Gold Standard. He believes, as I do, that our current Income Tax System is unconstitutional, because it is a direct tax that is not equally apportioned as The Constitution requires. Whenever taxes are raised by the federal government, it should be done as The Constitution does require--in an indirect way, which is equally apportioned. This system would benefit all of us, creating more individual wealth, and allowing us to make more decisions for ourselves about our lives. As President, Ron Paul will also work to abolish the Federal Reserve, a group of private banks, run by unelected officials, which loans our government unbacked money which they are allowed to essentially print out of thin air, making each dollar in your pocket worth less all the time, and increasing our national debt to these banks. Worse still. Most of our debt is owned by China (25%) and Saudi Arabia who finance our runaway military spending overseas. This is a threat to our nation. We need to bring our troops home from overseas, and use the trillions we would save thereby to reduce our debt, and to re-invigorate our currency. We can use this money to ensure that Social Security and other essential programs will still be solvent in the future. Vote for Ron Paul. He''s published three books on the topic of sound economics. ronpaullibrary.org
Federal Reserve Chairman Ben Bernanke appeared before the Congressional Joint Economic Committee Member, Congressman Ron Paul on November 8th, and had to face some tough criticism from Paul concerning the fact that the Fed has been increasing the money supply while at the same time refusing to raise the Prime Interest Rate in order to curb deflation. Paul accused the Federal Reserve of "robbery," telling Bernanke, "There''s a dollar crisis out there and people''s money is being stolen," Paul said. "People who have saved, they''re being robbed. I mean, if you have a devaluation of the dollar at 10 percent, people have been robbed of 10 percent." Federal Reserve Chairman Ben Bernanke attempted to dispel that notion by explaining, "If somebody has their wealth in dollars and they''re going to buy consumer goods in dollars, then the only effect it has on their buying power is that it makes imported goods more expensive." Paul disagreed, reminding Bernanke, "Yeah, but not if you''re elderly and you have your wealth in CDs. Their cost of living is going-up no matter what your CPI says," adding finally, "Their cost of living is going up, and they''re hurting. And that''s why the people of this country are very upset."
Congressman, Paul never votes for any Bill which he feels is not authorized by The Constitution, regardless of what it might be named. He feels most Laws should be made at the local or State level: the way our Founders intended. We are a Republic, and we have plenty of State lawmakers who are more than willing to make Laws which best serve their constituents. "Ron Paul is one of the easiest people in Congress to work with, because he bases his positions on the merits of issues," says Barney Frank, who has worked with Paul on efforts to ease the regulation of gambling and medical marijuana. "He is independent, but not ornery." Paul has made a habit of objecting to things that no one else objects to. In 2001, he was one of only three House Republicans to vote against the USA Patriot Act. He was the sole House member of either party to vote against the Financial Antiterrorism Act. In 1999, he was the only naysayer in a vote in favor of casting a medal to honor Rosa Parks. Nothing against Rosa Parks. Paul also voted against similar medals for Reagan and Pope John Paul II. He did, however, offer $100 of his own money to help pay for Reagan''s medal, and invited others in Congress to match his offer, but not one Member took him-up on it. Instead, Congress spent YOUR money. He not only routinely opposes resolutions that are unconstitutional, he votes against Bills which presume to advise foreign governments how to run their affairs.
The main thing Ron Paul''s campaign has done thus far is to serve as a clearinghouse for voters like me who feel unrepresented by the Fascisct (globalist Republicans) and their Socialist comrades in crime (globalist Democrats). They''re actually one and the same. It''s all a phony, poorly staged left-right paradigm. Most people, though, are too distracted, dumbed-down, or outright brainwashed by mainstream media, which endlessly regurgitates scientifically-crafted streams of information aimed at keeping their eyes closed to the realities of the world around them, that they fail to recognize this. Those currently in power, and those being groomed to take [major] political power, are preselected by the "global elite," and whomever is eventually elected, will ultimately, serve their will, and not ours. People on the right and those on the left have many differences. Maybe irreconcilable ones. But they have a lot of common beliefs too, and their numbers and anger are of a considerable magnitude. No matter what happens in 2008, I personally believe Ron Paul will influence the national conversation about what the role of the federal government is, how much power the government should have over our lives and how much liberty we should give up for security. These are issues that, frankly, no one else is talking about as seriously and sincerely as Ron Paul. What''s for sure is that his growing army of supporters like me will be a force to be reckoned with in 2008.
-- No more meddling in other country''s political affairs
-- No more aggressive military actions overseas
-- No more torture prisons
-- No more pseudo-wars like the "War on Drugs"
-- No more IRS and unconstitutional income taxes
-- No more Federal Reserve (the group of private banks which owns our government)
-- No more U.N. (one world government) participation
-- No more NAFTA, CAFTA, WTO or GATT
-- No more North American Union
-- No more federal gun control laws
-- No more illegal aliens pouring-in over our country''s borders
-- No more illegal aliens allowed to roam freely in our streets
-- No more federal Laws which are not authorized by The Constitution
-- No more federal erosion of State sovereignty
-- No more unlimited federal government
They don''t call him "Dr. No" for no reason. The Doctor is in! Join us in this 21st Century political revolution at ronpaul2008.com
"Liberty, when it takes root, is a plant of rapid growth."
- George Washington
"Those who expect to reap the blessing of freedom must...undergo the fatigue of supporting it."
- Thomas Paine
"Ron Paul doesn''t represent your Father''s school of political thought. He represents your Founding Fathers."
- Me
If he is elected President, Ron Paul will work to abolish the Federal Reserve System as well as the IRS, returning our country to the Gold Standard. He believes, as I do, that our current Income Tax System is unconstitutional, because it is a direct tax that is not equally apportioned as The Constitution requires. Whenever taxes are raised by the federal government, it should be done as The Constitution does require--in an indirect way, which is equally apportioned. This system would benefit all of us, creating more individual wealth, and allowing us to make more decisions for ourselves about our lives. As President, Ron Paul will also work to abolish the Federal Reserve, a group of private banks, run by unelected officials, which loans our government unbacked money which they are allowed to essentially print out of thin air, making each dollar in your pocket worth less all the time, and increasing our national debt to these banks. Worse still. Most of our debt is owned by China (25%) and Saudi Arabia who finance our runaway military spending overseas. This is a threat to our nation. We need to bring our troops home from overseas, and use the trillions we would save thereby to reduce our debt, and to re-invigorate our currency. We can use this money to ensure that Social Security and other essential programs will still be solvent in the future. Vote for Ron Paul. He''s written entire books on the topic of sound economics. ronpaullibrary.org
Federal Reserve Chairman Ben Bernanke appeared before the Congressional Joint Economic Committee Chairman, Congressman Ron Paul on November 8th, and had to face some tough criticism. Paul accused the Federal Reserve of "robbery," telling Bernanke, "There''s a dollar crisis out there and people''s money is being stolen," Paul said. "People who have saved, they''re being robbed. I mean, if you have a devaluation of the dollar at 10 percent, people have been robbed of 10 percent." Federal Reserve Chairman Ben Bernanke attempted to dispel that notion by explaining, "If somebody has their wealth in dollars and they''re going to buy consumer goods in dollars, then the only effect it has on their buying power is that it makes imported goods more expensive." Paul disagreed, reminding Bernanke, "Yeah, but not if you''re elderly and you have your wealth in CDs. Their cost of living is going-up no matter what your CPI says," adding finally, "Their cost of living is going up, and they''re hurting. And that''s why the people of this country are very upset."
Social Security
Veterans Benefits
Except : Of course Government Officials - Who will keep their Life-long Pensions
Lastdance
Posted by bm6005
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Given the fact that there is no rational reason for the markets to go anywhere but drastically down - given the plethora of terrible, and worsening, economic conditions - what is the explantion for the fact that they aren''t doing so? Is it just unparalleled greed/stupidity of investors? Is it the fact that the dollar is so far in the toilet that to foreign investors - with valuable currency - the market is the cheapest they''ve seen? Nobody seems to want to truly analyze the bizarre market behavior; just the same-old meaning phrases are used to describe it. Not good enough.
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Closes Difficult Session With Late-Day Rebound; Fed Foresees Slower Economic Growth''
My kid can bring better excuses to the table than the feds.
This will go on for at least more year-as it was intended.Who wins in the elections will pick up the tab.
Posted by sunsetbillyb at 04:00 PM : Nov 08, 2007
..........
That is true.
China''s largest car builder, "Chery", is exporting around the world and looking to enter into the U.S. market. They just need some dealers to get on board. Their cars will beat the prices of even the Korean car builders, which have typically been known in the U.S. as the low budget/value option for many buyers. The verdict on quality is still out, but year over year, China''s industries are outpacing the U.S. by leaps and bounds. The only industry China does not have any market in, and still relies on the U.S. for, is the large passenger aircraft industry, (Boeing).
Economists around the world had predicted that China will become the world''s second "superpower" within the next 15 to 20 years.
At their current rate of growth, and our current rate of decline, I would expect China to be the ONLY superpower by 2015, easily.
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