Dow Drops Below 10,000 Amid Job Market Worries
Posted by Jim Hoft on Thursday, February 4, 2010, 5:55 PM
The Dow fell below 10,000 for the first time today since November amid worries about the US job market. The number of newly laid-off workers filing initial claims for jobless benefits rose unexpectedly again last week. The rise is the fourth in the last five weeks.
CNBC reported:
The Dow fell below 10,000 Thursday for the first time since last November amid worries about the US job market and Europe’s ability to get a grip on its debt.
In the final, hair-raising minute of trading, the Dow Jones Industrial Average fell below that 10,000 mark, before popping back up a few points to end at 10,002.18.
When the dust settled, the Dow lost 2.6 percent, led by Bank of America, Merck and JPMorgan. Just one of the 30 Dow components was higher — Cisco.
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Published February 8, 2012 at 8:42 pm - 108 Comments
Alaskan commented:
The ‘advisors’ that are SHOCKED everymonth UNEXPECTANTLY with higher unemployment numbers should join the ranks of the unemployed (they obviously aren’t that good number, but they make great liars).
An advisor that can forecast, predict and see trends positively and negatively with EXPECTATION should be the ones employed.
Either that or buy them a Thessorus and have them find a different word for ‘unexpected’…..their surprise every month is getting old to us civilian workers that do expect to see unemployment increasing.
I thought Obama said he was going to surround himself with the best? This is unexpectant!
Paul - Independent Conservative commented:
And the Leader of Hope and Change looked at his Teleprompter and said:
“We will triple the exports!! Yes we can!! We will send all the unemployed to China.”
“I pledge to you, by tomorrow, unemployment will be down to 5%. I will veto any legislation that prohibits exporting Chinese food to China. Yes, we can!!”
Blue Collar Todd commented:
Let me thank President Obama and the Democrats for destroying my 401k.
avery commented:
We really need someone that have some ideal of what they are doing.He scare he will lose his base if he do what it take to get thing stright out.
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BigAlSouth commented:
Wall Street Bankers voting on Obamanomics. It’s really that simple. Oh, and the 17 percent (real) unemployment rate.
Paul - Independent Conservative commented:
avery, what base are you talking about? The SOBama HATES America. He doesn’t need any base to please. He pleases himself. He enjoys watching America going down the drain.
TheScribbler commented:
Obama’s house of cards is crumbling and he’s grasping at anything that will make it stop. His whole administration is a farce and a laughing stock. He’s ridiculed on a daily basis now and that’s just got to hurt his enormous ego. You can see the tension during his latest speeches. He knows that people aren’t believing a word he says. He can’t even keep his own party in check any more. More and more of them are starting to question him and his motives. He pushed too fast and too hard and now he’ll have to pay the consequences. And those that stick with him to the end will do the same. Still got that spot in the unemployment open for ‘em!
Tom commented:
During George W’s time in office, the Dow went from 10,700 (the day he took office) to 7950 (the day he left office) — down 25% in eight years. During Clinton’s time in office, the Dow went from 3255 to 10,700 — up 328% in eight years. During Obama’s time so far, the Dow’s gone from 7950 to just under 10,000 — up 25% in one year. Are you really sure you want to say the Dow is an indication of how well the President is doing?
Mike W commented:
The unemployment numbers were only part of it. Portugal announced today that they were bankrupt. Along with Greece this is not looking good for the progressives who want us to be like the Europeans. Also not reported is that Spain and Italy are likely to go belly up sooner rather then later.
One other non newsworthy msm story from those wonderful people across the pond is that Icelanders are voting not to pay back Britain and the Scandinavian countries 1.2 billion loaned to them as bailouts. Imagine if we did this to China.100 years ago Iceland would have been surrounded by battleships. Today we reward bad behavior so I look for Icelanders to receive a Noble Prize.
Galt commented:
The 90s gave us the tech bubble. The 00s gave us the housing bubble. Now we have a government bubble. You can thank each POTUS or blame each POTUS but one thing you can’t do is pretend each bubbles was meant to never burst.
The current POTUS is still trying to inflate this government bubble. With the same easy-money, reckless spending, and subsidizing of risk that caused the last bubble to grow and burst. It’s utter foolishness.
DaveinPhoenix commented:
Dateline: Sometime during 2010…..
The entire effing U.S. economy collapsed UNEXPECTEDLY overnight after a failed Treasury Auction which the Chinese pulled out of bidding.
They were heard to mutter something like “…you keep California, the rest is OURS.”
KR commented:
Nice try Tom, but no cigar.
Anyone who knows the history and why the stock market went up or down knows you are misrepresenting things.
Jim,MtnViewCA,USA commented:
Wow. This is so…..unexpected!
Except for anyone who has been watching federal state and local government spending.
It’s not too late, Obama buddy. Turn this thing around and start heading the economy is the other direction.
Jim commented:
ROFL, remember folks, he is NOT, I REPEAT, NOT an ideologue.
Tom commented:
KR, I’m not misrepresenting anything — I’m stating facts about what the Dow did.
Chisum commented:
The leaderless left
During various forums over the past month, Barack Obama has insisted that he won’t quit on passing health-care reform, improving the job market, and working more in a bi-partisan fashion to find solutions to the nation’s problems. For many of us on the Right, we know these are just words because throughout the past year we’ve watched his actions. Ultimately, we could only question how seriously he takes his post as the president of the most of powerful nation in the world, and whether he has the qualities it takes to effectively hold that post. Well, his administration has finally confirmed what we’ve suspected all along.
The Washington Post reports:
White House spokesman Bill Burton said Obama will not delve into the minutiae of writing a health-care bill. “He’s not a legislative technician,” Burton said. “He’s not going to get into the nitty-gritty of what the best way forward is at this point.”
http://www.americanthinker.com/blog/2010/02/the_leaderless_left.html
KR commented:
Tom: “During George W’s time in office, the Dow went from 10,700 (the day he took office) to 7950 (the day he left office) — down 25% in eight years.”
In the spring of 2008 the Dow was over 14,000.
The drop had to do with the housing bubble, thanks to many dems in congress.
Tom: “During Clinton’s time in office, the Dow went from 3255 to 10,700 — up 328% in eight years.”
Don’t overlook the Republican congress which worked to decrease the national debt/deficit. Clinton was smart to switch his direction and cooperate. Funny how Clinton is often given full credit.
Tom: “During Obama’s time so far, the Dow’s gone from 7950 to just under 10,000 — up 25% in one year. Are you really sure you want to say the Dow is an indication of how well the President is doing?”
Markets look to the future. While Bush was still in office investors could see what was coming down the pike once Obama had won the election. The low being the far swing of the pendulum has come back toward the middle.
There are so many variables that affect the Dow, I have just mentioned the most obvious.
Chris commented:
The media is trumpeting the “unexpected” line, but the simple fact is that anyone who has been following the metrics and following the news–such as the inflated GDP numbers, plummeting income and sales tax revenues, and states and municipalities approaching default status–knew this was coming a long time ago, it was just a question of when.
Now, it remains to be seen if Obama and Helicopter Ben Bernanke can kick the can a little longer, but I doubt it. Not only has Congress raised the debt ceiling to 100% of GDP, they have adopted the same tactics of hiding toxic trash off the ledger as the banks have, by keeping the trash in Fannie and Freddie off the government’s public debt ledger.
And guess what? The OptionARM and ALT-A loans reset next year, meaning we’ll be doing the subprime boogy all over again. THAT reset may very well finish off what’s left of the banks. Not to mention that SS and Medicare are broke as hell also.
We are fuxored, folks. There is NOTHING that any politician can do to reverse this, because they’ve been screwing around since inflation kicked in during the mid-1970s, hoping that they wouldn’t be around once the whole thing finally came crashing down.
Chris commented:
I should add that anyone who trusts the DOW to be an accurate indicator of what is going on in the market needs to broaden their outlook. Both the 5-digit DOW highs during Clinton and Bush’s terms came about as the result of economic bubbles–dot.com and housing–and were not based on stable industrial growth. Both bubbles were formed due to misplaced enthusiasm, a desire to find the “bigger fool” to take overvalued assets, and in the case of the housing bubble, the silly notion that a home was an ATM machine or a rapidly appreciating asset in perpetuity.
Look beyond the DOW if you want to find how the economy is really acting. The DJIA is just a smokescreen at this point in our history.
KR commented:
The Dow is made up of about 30 companies.
Unemployment numbers are a better indicator of the economy’s well being.
noislamocommie commented:
Well….as more people get laid off they will have time to study the intent behind article II section I clause V.They may begin to agree with the Framers that loyalty,allegiance are important features in the executive branch. Who knows they may even agree that TWO CITIZEN PARENTS AT TIME OF BIRTH was laid out for a reason.
Pray for the Kerchner case.
Tom commented:
KR, unemployment was 7.3% at the start of Clinton’s Presidency and 3.9% at the end. Under Bush, it went from 3.9% back up to 7.4%.
Do you remember the last time unemployment was over 10%? Under Ronald Reagan. It peaked at 10.8% in December 1982. That’s the highest it’s been since the Great Depression.
Solaratov commented:
Tom
February 4th, 2010 | 7:18 pm | #8
Your little post was one of the most dishonest posts I have ever read on GP.
If you know enough to write that, then you know that the market was much higher during Bush’s time than it was in klinton’s. And you know that it didn’t go down “over eight years’ – but dropped when the housing bubble burst and fanny and freddie went south because the democrat-controlled congress wouldn’t rein them in.
The market went down only after, in fact, the democRATS took control of congress.
Try being a bit more honest on your next attempt. OK.
James commented:
President George W. Bush was performing a miracle on the economy until the dems took control of congress and the domestic agenda in Jan., 2007. President Bush inherited a recession from clinton and a stock market that was in free fall. Pres. Bush also inherited the 9/11 plot in its late stages and an al queda at full strength, thanks to clinton and massive corporate scandals such as Enron and Worldcom, all taking place under clinton. Throw in the 9/11 attack, 2 necessary wars and Hurricane Katrina and Hurricane Rita (yes, libs they were a natural disasters), the economy under President Bush saw unprecedented employment growth, the dow and S & P 500 hitting all time highs and a near record of monthly GDP growth. President Bush holds the record for most consecutive months of employment growth of any president in american history. Oh, and he lowered everyones taxes, freed 50 million people, saved hundreds of thousands in Africa, saved thousands in New Orleans after he successfully got the governor and mayor to start evacuating its citizens, gave seniors cheaper prescription drugs, raised minority test scores to record levels and he kept us safe from another attack over the course of over 7 years. Once the dems took control of congress and pushed lenders to give loans to those who had no means to pay them back, allowing fannie and freddie to get out of control, while President Bush and the GOP warned of the danger and were called rascists by the dems pushing more irresponsible loans. And in late 2008, it was President Bush who took the tough and unpopular action to save the financial system, which obama is laughably trying to take credit for now. God bless you President George W. Bush, the greatest president in american history. Boy, do we miss you now.
Tom commented:
Solartov, I’m stating facts. You may not like them, but they’re facts.
I should hope the market was higher under Bush than it was under Clinton. It would be a sorry state of affairs if the Dow didn’t increase in value at some point during a presidency. And you’re right — the market didn’t go down every year of Bush’s presidency. It was essentially flat from 2001-2005 (except for a 25% dip in 2002-2003), rallied during 2006 and 2007, then crashed in 2008.
Nahanni commented:
Solaratov,
You ought to know by now that “liberals/progressives/populists” or whatever they are calling themselves this week have all the economic understanding and common sense of a 13 year old girl with her parent’s credit card at the mall.
Here is some reading material for folks to understand what is happening and will happen.
Obamarket Special 2/4/10: Hit by a Truck
http://johngaltfla.com/blog3/2010/02/04/obamarket-special-2410-hit-by-a-truck/
20 Reasons Why The U.S. Economy Is Dying And Can’t Ever Recover As Long As Democrats Control the Levers of Power
http://directorblue.blogspot.com/2010/02/20-reasons-why-us-economy-is-dying-and.html
Who Remembers This…..
http://market-ticker.denninger.net/archives/1935-Who-Remembers-This……html
S. Wolf commented:
Grade Obama’s First Year in Office
From CBS… F’s
LimoLibsStink commented:
0bama:
What’s a few million more un-employed workers mean to me? Zero! I’m still employed. My cronies at the Whitie House and ACORN are still employed – what is the big deal?
I could careless how many thousands of points the Dow Jones falls – I have my lush government job and my perks. Who are Mr Dow and Mr. Jones? Judging from their names they probably are Typical White People who cling to their bibles and their retirement accounts.
My economic plans are working. More unemployed taxpayers means more ACORN workers. It’s that simple.
My limousine is running and I have a meeting with SEIU. We need to control all school lunch employees and slim down the fat school kids and their parent’s wallets. I must look busy. Good day.
Galt commented:
Someone here hit the nail on the head: equities markets are forward-looking. Back in the tech-bubble people looked into the future and saw… only good things. Remember, they called it a “new economy” and the rules were going to be different.
When else have we heard that? Oh yeah, when houses prices were sky-high — home prices would never go down, they said.
And last year brought us the government bubble: investors looked into the future and saw a mountain of government spending. “Look at all that “stimulus” cash, easy credit, and subsidized risk!”
But taxpayers and small businesses already feel the hangover. And those who really know how to read history (and not spin anecdotes) know that this bubble too must burst. Markets are forward looking, but it takes them time to see what’s in front of them.
Militant Conservative commented:
Tom, state for me the economic policy that Clinton signed that caused the recovery in the market.
NONE, just like Bush 41, they kept the REAGAN policies in effect.
But Clinton DID put teeth into the community reinvestment act. (make loans to those that cannot pay them back). We were a rich country and it took over a decade to hit us in the pocketbook. Democrats are progressives, some worse than others. they believe is taking from producers and giving to non producers. this never works and when tried on a grand scale fails on a grand scale. Look at the functions of the congress, to appropriate and spend money.
Then look at the market. not so good now huh.
Galt commented:
Clinton did something else, albeit unwillingly: he chose to not veto a modest reform of a cash welfare entitlement.
But as modest as it was it represented a singularly rare step in the direct of entitlement reform.
The Dems today have not only reversed the reforms of 15 years ago but have shifted entitlement growth into overdrive. It is as absurd as it is unsustainable.
(And I can’t help but see the comedy in the trope that credits Dems for timing their economic bubbles to burst after they leave office — not unlike those evil mortgage brokers who sold a bill of goods to a borrower then packaged a toxic security for sale to the next sucker upstream!)
Militant Conservative commented:
What you say is true Galt. I have noticed this pattern.
Just like the old mantra of saying tax cuts cause bigger deficits. Had this discussion with the libtards of the day in the 80′s and 90′s. One lib even wanted to say that 50% of the GDP went to fund the Military.
I brought in the 1040EZ booklet from th epost office (it was tax time) In the back was a pie chart showing where all monies went from the FED. She was shocked that actually Social security,medicare, medicaid, and transfer payments were over 50% and the military budget was a small sliver. She still stood by her claim. Libs are affected with a disorder that causes them not to be able to digest the truth. errr I think the word of the day is RETARDED. LOL
KR commented:
Tom: “It was essentially flat from 2001-2005 (except for a 25% dip in 2002-2003), rallied during 2006 and 2007, then crashed in 2008.”
No. the rally after 9/11 began in 2003. The housing bubble began to burst in 2007 leading to the market drop.
Tom: “…unemployment was 7.3% at the start of Clinton’s Presidency and 3.9% at the end. Under Bush, it went from 3.9% back up to 7.4%.”
Again you give Clinton all the credit for the improvements the Republican congress created.
The majority of time Bush was in office, unemployment was very low. The 7.4% wasn’t until the housing bubble bursting (thanks to many dems in DC).
Tom: “Do you remember the last time unemployment was over 10%? Under Ronald Reagan. It peaked at 10.8% in December 1982. That’s the highest it’s been since the Great Depression.”
Yes I do. And if you remember Carter you would know why this was the case. Jimmy also gave us double digit inflation.
There are lies, d@mn lies, and “facts” as Tom presents them.
Tom commented:
Relax, everyone. I’m just reporting facts — not saying anything about causation or giving anyone credit or blame.
Remember that this thread started with the idea that Obama was to blame because the Dow dropped below 10,000. So is the logic:
Dow drops 7% in a month; President is to blame.
Dow grows 25% in a year (despite that drop); President did not cause it.
Dow drops 25% over an eight year Presidency; President not responsible for that.
Dow grows 326% over an eight year Presidency; President not responsible for that?
Or is it:
Democrat in White House; President can’t be credited for sustained economic growth, but CAN be blamed for short-term downturns in Dow Jones index or for the unemployment rate a year after he took office.
Republican in White House; President can’t be blamed for unemployment a year after he took office or lack of economic growth OR short-term downturns in Dow Jones Index?
All I’m saying is that you need to be logically consistent in your economic analysis. If you already believe the outcome of your analysis (Obama and Clinton bad; Bush and Reagan good), then YOU may believe the analysis even if it’s flawed. But if your audience doesn’t already believe the outcome, you’re going to have to work harder to persuade them.
This is a democracy after all. Marketplace of ideas, anyone? If people are going to lose their cool and start calling me names when I come along and report indisputable facts, it’s going to be hard for them to persuade folks who are on the fence about what those facts might mean. Not a good way to win the debate.
Before you all fire up your flamethrowers, I would ask you to ask yourself — why do you think I’m the enemy?
Chisum commented:
I would ask you to ask yourself — why do you think I’m the enemy?
Ha! You flatter yourself.
We don’t see an enemy, we see a troll.
Nothing more…nothing less.
KR commented:
You are right, Chisum. Tom is a troll. I have seen this type of post before. No original thinking on Tom’s part. Just another attempt to mislead.
Chisum commented:
KR,
Yep. And he’s not very good at it, is he?
In the meantime, don’t feed the trolls.
Militant Conservative commented:
Tom you glittering jew of colossal ignorance. There is more than just presidents involved you dolt. Took till the housing bubble to burst before we saw the effect of a Jimmy Carter policy. I have stated this before, Liberals have no concept of truth in them. No cause and effect in thier world.
Tom commented:
Glittering jew? Is that a typo?
boqueronman commented:
Tom, please excuse the interruption but may I ask a quick question. Do you work, or have you ever worked, in the financial and/or investment industry? If so, please let us know the name of your firm. You have demonstrated such an adeptness with stock market facts some or all of us might want to take advantage of your expertise. Thanks.
Tom commented:
I worked in the financial industry a number of years ago for a firm that no longer exists. I’m not telling you anything that you can’t find yourself through online research. Check out BigCharts.com, for example. It lets you look at the DJIA (among other indexes and stocks) for whatever period you want to.
Militant Conservative commented:
Simple minds digest little.
Chisum commented:
Great song.
Take Responsibility? Moi?
http://www.powerlineblog.com/archives/2010/02/025527.php
Tom commented:
So “glittering jew” wasn’t a typo?
Militant Conservative commented:
No some have to work. Jewel numb nut.
Christopher Dodd senate finance committe. Gee think he knows what he was doing? Hell no he and Barney Fwank would not allow John McCain (RINO) nor George Bush to do anything about this fiasco.
Democrats are not anything but distroyers of the free market for thier own power.
Militant Conservative commented:
The troll named TOM never checks his posts after the day is done. HMMMMMM typical drive by mentality.
spray the bullets of accusation and move on.
Tom commented:
I’m sorry, Militant Conservative… I can’t tell whether you want to hear more from me or less.
Militant Conservative commented:
Definately less,
Your thoughts have no substance nor coherance.
Typical voter these days. The most expensive thing America produces is an ignorant electorate.
Good day. Powder is dry.
Chisum commented:
Militant Conservative,
+1
Tom commented:
Disagreeing with you isn’t the same as ignorance, Militant Conservative. Anyway, why don’t you tell us a little about your military service?
Tom commented:
Oops! Just ran across something that might be interesting to this group. It’s a study showing that the stock market has performed much better under Democratic Presidents than under Republican ones:
http://docentes.fe.unl.pt/~psc/Politics.pdf
Militant Conservative commented:
Electronic warfare operator off of then Russia and other Dictator counties. Later a Dod field engineer for U-2 and RC-135 electronic warfare systems. Now field engineer for visualization systems in the O.R. suites.
It’s not about the president in the WH. It is the policies that are in effect that take time to work thier magic or death. Carters community reinvestment act is what gave us the housing bubble. May have happened under Bush but I don’t blame him for it. I blame obstructionist progressive democrats. Open you freaking eyes for GODS sake. Lower taxes and smaller government means freedom. Democrats are not about freedom unless it is freedom to kill infants.
Tom commented:
There it is, Militant Conservative. It isn’t about the president in the WH, and policies take time to have an effect. So let’s not freak out at Obama if the Dow takes a temporary downturn.
Thanks for your service to your country. Much appreciated!
Militant Conservative commented:
Current president is an Alinsky acolyte that has committed high crimes and misdemeanors against this country and the constitution.
He is nothing but a Traitor. Also google the term twenty traits of a Malignant Narcissist. LOL more that 10 of the twenty traits discribe Obama.
Liberty Watchman commented:
As the sober world fears mounting debt, the democrats in the House applaud raising the debt limit to $14.2 trillion. If you are going to destroy by country, could you please refrain from applause? http://bit.ly/bmOp3z
pontoon commented:
nice thread good reading, Judges decision goes to….
wait for it…….
Militant Conservative in a total PIP HAND.
(That’s bitch slap for you older folks)