Stock Market Crash Unfolding Now

The stock market fell 323 Dow Jones points today. It was reacting to a terrible May unemployment report. The tally of private sector jobs was a mere 41,000. It was expected to be in the 125-250 thousand range. There is no way thye U.S. can grow out of this recession with those kind of employment gains. Consequently we will crash. Maybe revisit the market lows of last year. That would be an additional 3000 points lower from this level.

Obama, Pelosi, Reid et al who passed a costly health care reform but can't pass a necessary financial markets reform will be long remembered as two important reasons for the crash. Simply Americans have lost faith in their central government. And who can blame them.

SEC Flash Crash Report Misses

The long awaited report by the S.E.C , NYSE et al about the May 6 "flash crash"was published today. It didn't answer the burning question,"What started the selling"? Instead they gave a broad description of everything else that happened. Not what caused the sequence of events. Why do we pay these people?

They didn't even mention the erroneous price trade of Dow component Proctor & Gamble. I believe that the 30 point price error in P&G stock started the panic. It's like yelling fire in a crowded theater. A 30 point decline in P&G equals app. minus 200 Dow points. So when the Dow signaled an instant drop of 200 points most of the day trading herd headed for the exits.

I have one question. How and who put that bum priced P&G trade into the system? Was it China? Was it a hedge fund who was short?

Wall Street Debacle: A Madame Defarge Moment

Madame Defarge smugly knitted while the guillotine decapitated the French aristocracy in Dicken's " A Tale of Two Cities". Likewise some of us indulge in schadenfreude as the " masters of the universe" on Wall Street are dying from a thousand financial cuts from the falling Dow Jones Averages. The peers of Wall Street like the nobility of France are and were the bigger losers.

Frivolous Monkeys With Guns, Money & Language

Yesterday the BBC reported 1 adult,male and 3 juvenile gorrilas were shot and killed in the Congo's Varengo Mountain Gorrila Reserve. Where is the AIDS virus for these near-monkeys with AK-47s ?

Yesterday the Dow plunged 387 points on nonprime loans fallout. Nonprime loans include banks lending to bad credit history applicants, high debt to income borrowers and no-documents on income home buyers. In other words banks lent their depositors money to would be defaulting borrowers who could walk away from the loans if the home didn't appreciate in value.

Yesterday the democrats gave Bush/Gonzales increased power for warrantless eavesdropping. This is despite the promise from the dems that they were different than the republicans and " if elected " would clean up Washington. Language is cheap. Only deeds count.

We are called homo sapiens. This means we are wise. But we act more like frivolous monkeys with technology.