Fed minutes send Dow, Nasdaq freefalling

[rodeodance]

Source: AP Business

Fed minutes send Dow, Nasdaq freefalling

By JOE BEL BRUNO, AP Business Writer 1 hour, 52 minutes ago

NEW YORK - Volatility returned to Wall Street Tuesday, sending stocks plunging as investors grew more uneasy about the economy and whether the Federal Reserve will take the steps needed to prevent credit market problems from spreading further. The Dow Jones industrials fell 280 points.


The stock market found little to assuage concerns in minutes from the Fed's last meeting, released during afternoon trading. The major indexes' losses steepened after investors parsed the minutes for signs of a possible cut in interest rates.

There had been some hope on the Street that Fed policymakers might have sent a stronger signal they were more willing to cut interest rates to help calm turbulent market conditions. But in the minutes from the Federal Open Market Committee's Aug. 7 meeting, while the central bank noted the turmoil in the markets and said, "to the extent such a development could have an adverse effect on growth prospects, might require a policy response," it didn't discuss a cut in the benchmark federal funds rate that Wall Street has wanted.

The meeting predated a number of actions taken by the central bank to try to alleviate market volatility, including the Aug. 17 lowering of the discount rate, the interest the Fed charges banks to borrow money. Wall Street, despite a calmer week after that step, seems to be growing more dissatisfied because the Fed has not yet lowered the funds rate — and with a return to the intense volatility seen earlier this month may be trying to force the Fed to act.

Read more: http://news.yahoo.com/s/ap/20070828/ap_on_bi_st_ma_re/wall_street;_ylt=AtM2AqTAIQQQWVyOpTEHZzWs0NUE

[Double T]

1. wall street and corporate america can't ALWAYS be looking..........

for WELFARE from the FED.

[indepat]

2. They shouldn't, but don't they alway do?

[Double T]

4. ALWAYS have..........

Maybe helicopter Ben Bernanke won't cave in to their pressure and desires this time.

[kirby]

6. Fed already 'bent the rules' for Citi and BofA

See
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=1659141&mesg_id=1659141

[Double T]

9. When the BIG BANKS are in trouble, you can bet they won't consult the rule book.

[msmcghee]

3. Wait a minute . .

. . is he saying that "the market" or "Wall Street" may be trying to force the Fed to act - by being volatile?

I had no idea "the market" had the ability to do such things - I mean on purpose as the article implies.

Maybe this is just another "expert" blowing smoke to make people believe he has this incredible insight into the forces that drive market. "If you don't give me your money I'll make the sun disappear, and sure enough . . ".

Can anyone who knows more about the stock market tell me if this is possible?

[Double T]

5. Where have YOU been?

YES! The 'market' and 'wall street' are HEAVILY MANIPULATED by the MANIPULATORS.

http://www.associatedcontent.com/article/59061/how_wall_street_manipulates_investors.html

[msmcghee]

7. Well, I actually used to do some day trading.

Even if placed an order for $10000 worth of a small cap - I could usually see how affected the trading by a small amt - and I'm sure the price is even more sensitive to larger trades. But I always figured that it was still impossible to reliably predict changes that could make a profit - because others would have the ability to predict the same changes and that would reduce the profitability of the trade.

However, I am of the opinion that there is a great deal of insider trading going on. It makes no sense to me that with that much money at stake and the information there - people willing to take the risk will do so. Traders are risk takers anyway. Of course they do it.

Anyway - that's my take on it - admittedly not a knowledgeable view - but based more on my estimate of human nature.

[Double T]

8. The criminals are in charge and running the show...........

ALWAYS keep one hand on your wallet and trust ALMOST no one when it comes to your money.

[onewholaughsatfools]

10. I remember a late night TV show

Johnny Carlson on his show one night stated that there was going to be a toilet paper shortage and low and behold the next day everyone had gone out and purchased all the toilet paper

[phantom power]

11. What's especially sad is, they actually think the Fed can do anything about it.

We are led by fools. They don't even understand the nature of their own game.

[ProudDad]

12. Ah, more manifestations

of the internal contradictions inherent in capitalism...

http://findarticles.com/p/articles/mi_m1132/is_11_50/ai_54517443

"The early classical-liberal political economists, such as Smith, Malthus and Ricardo, saw only "the positive essence of capital" in this limitless drive for commodification. Distinguishing his position from these views, Marx argued that this process of the universalization of capitalism had, to a certain extent, to run its course - though at a certain point its contradictions (both internal and external) would result in its revolutionary overthrow. Hence, Marx rejected the views of economic romantics like Sismondi who operated under the illusion that the false universalism of capitalist market society could be countered simply through the erection, as Marx was to put it, of" barriers to production, from the outside, through custom, law etc., which of course, as merely external and artificial barriers, would necessarily be abolished by capital."(3) The contradictions of capitalism were all too real and all artificial restrictions introduced to save the system from itself would simply be swept aside by the development of the system. Capitalism thus tended toward an extreme universalism that undercut the conditions of its own existence. All middle roads, all proposals for the rational regulation of the system were bound to fail in the end. In this respect, Marx's views were thus very close to those of the economic liberals - who failed however to perceive the transitory nature of capitalism that this entailed."

Can't be regulated...