Thursday, October 9, 2008

Capitulation Headlines: Terror in the Markets

The terror comes from not knowing. Not knowing where the waves of selling are coming from, not knowing when it will end, not knowing if you have enough money to retire on, not knowing if you will retire, not knowing what else is out there. At least that's what you get from these headlines. I've been doing this a long time and still have to fight panic. It helps to have a discipline, experience, and a sense of history.
From Bloomberg:
Fear Trumps Greed as Market Woes Paralyze Economies

...Investors are in the grip of a panic that psychologists and historians say isn't necessarily rational and may intensify. They aren't buying stocks, and more importantly, suddenly afraid they won't be repaid, they aren't making loans by buying bonds. Banks have also tightened credit.

``People are driven by images of the best and worst that can happen,'' says George Loewenstein, a professor of psychology and economics at Carnegie Mellon University in Pittsburgh. ``The image of the worst is much more vivid in their minds right now.''...

From Reuters:

Panic sweeps stocks

Stocks plummeted for a seventh straight session as investors bet recent moves by authorities worldwide would not be enough to avert a recession. Full Article | Full Coverage

From the Wall street Journal:

Dow Drops 679 Points; Market's 7-Day Rout Leaves U.S. Reeling

Economists Expect Crisis to Deepen

From the Associated Press:

Stock market plunging into pit of despair

From Market Movers:

What Just Happened?

From Clusterstock:

Dow Crushed -- Words Fail Us


A Few Weeks Away From Global Economic Catastrophe


Tokyo free fall

From 24/7 Wall Street:

DJIA: 19 Days To Zero?


Apocalypse Now: Do The Markets Have A Chance To Recover

From the Kirk Report:

The Stock Market Crash Of 2008

From The Financial Times:

Wall Street plunges in frenzied trading

From the Wall Street Journal:

Economists Expect Crisis to Deepen