Remember when the DOW dropped 500 points last Thursday? Remember when “people” were saying “Hey, there, kid! It’s a tremendous buying opportunity! Oversold!! Buy the dip!!”
Well, I really hope you didn’t listen. Because falling knives are really sharp. Since the United States got downgraded Friday by S&P from AAA to AA+, things have taken a turn for the worse. The DOW closed down 634 points today, a 5.5% decline. If you think that’s bad, the Nasdaq suffered a 6.9% drop and the S&P 500 was down 6.66%. That’s three sixes, which obviously means Satan is involved.
Or maybe it’s not Satan but that damn S&P that just has it in for us, or maybe it’s our political system, as Obama told us early this afternoon. The president said “No matter what some agency may say, we’ve always been and always will be a AAA country.”
And after that short speech, the markets dropped further.
As Zero Hedge stated, this was the 6th largest drop in Dow Jones history. That’s awesome that records are being made!
And we hope you really stayed away from Bank of America, which dropped 20% today. But maybe Cramer still likes it. Buy the dip!
Some more funny items I saw today:
- The Onion: Drunken Ben Bernanke tells everyone at bar how screwed economy really is…
- Michael Moore wants Obama to arrest the CEO of Standard & Poors!
- The president quoted Warren Buffett as saying the United States is a “AAAA” country. The S&P, of course, marked the outlook for Berkshire Hathaway from stable to “negative.”
- Tim Geithner says that the S&P has “shown a stunning lack of knowledge about basic US fiscal budget math.” LOL.
- BofA says they don’t need to raise capital. (Right.) On a related note, I have heard rumors that people are raiding ATMs to get their money out of BofA as fast as possible. Can anybody confirm?
- Final LOL: Cramer still has a job.