Market Wrap Up: Dow closes down 200+…Big 3 loan stalled at WH…

As the closing bell rings the DOW is down 222 to 8603; NAS down 27 to 1552 and S&P down 19 to 885.

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The NAS was down all say on downgrade of chip makers and Intel in particular got hammered when their price target was downgraded below $12..

DOW turned down after Standard & Poor’s decided to re-affirm GEs AAA rating, but simultaneously downgraded their credit outlook from stable to negative…Ironically, S&P rang the closing bell on the Nasdaq today…

…Sprinzen’s report reaffirmed GE’s present rating, but pointed to earnings pressure and the need for funding at GE Capital that forced management to revise its earnings guidance. S&P generated its own projections, Sprinzen said, and “it’s clear that this is going to be a pretty severe credit cycle.”..

You know what Franck Eggelhoffer would say don;t you? ‘Party pooper Standard and Pooor’s’…where were these jokers since 2003??

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IMO biggest criminals in this credit and housing disaster are the ratings agencies that rated this crxp as good paper, great paper in fact..now there is a group of people that needs a hearing on Capitol Hill, keep ’em busy for a while, HA!!!

The downgrade of the GE outlook is based on information on the street for a while now and had no impetus for today..I consider this part of the no shxt Sherlock files…

Dubyah and Paulson playing good cop/bad cop, and IMO are trying to stall to force GM to take on Chrysler and kill two dodos with one stone…quid pro quo as it were..you take Chrysler off Cerebus’ hands, and we’ll give you the dirty money….the ROY is they plan to announce a deal Christmas Eve…a real ‘feel good’ moment I guess they are looking for..

I gotta tell ya’, Chrysler is shut in ALL 30 of its plants, GM announced a two week extension of its Holiday plant closures and Ford has added a week…Kokomo, Indiana has been hit hard by the plant closures. The only jobs in town are at Chrysler or….Delphi..yes there it is, the parts makers we spoke about for weeks and weeks…

…Mayors Greg Goodnight of Kokomo and Wayne Seybold of Marion hope to highlight the economic troubles their communities face with the forum planned for Monday at a hotel a couple blocks from the Statehouse in Indianapolis…

In Kokomo, some 5,000 people work at Chrysler plants and about 3,500 work for parts maker Delphi Corp.

-snip-

..Seybold estimated that Marion’s city government could lose millions of dollars a year in revenue if the GM plant there closed….(MiM here fyi,  Seybold is a Republican this is not a D/R issue it is a JOBS issue)..

Personally I think Paulson looks more like the Grinch daily, but then again I anthropomorphize everything (c’mon is Hank real or is he Memorex??) , so why shouldn’t Hank himself evolve as he continues to stingily refuse to deal with housing while shovelling money at the banks with both hands….ugh!

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As we expected at MiM and reported on November 18th, Hank came out this week and told Maria Bartiromo of CNBC he has no intention of asking for the second tranche of TARP but was quick to follow with meaningless natter about looking at all housing options (so far, his favorite seems to be the one in which he does nothing and PEBO deals with it).

Another interesting thing in currency markets today, apparently the nations of the world have decided to Race to the Bottom! and are all competing for the lowest currency. MiM called a dollar top weeks ago with Rick Santelli, a cool customer is he, I always listen to Rickster. But intervention is creating a small dollar pop. . The dollar was up against the Yen, and intervention chatter across the pond sent the Euro lower against the US Dollar today after our currency spent 5 days falling off a cliff, a cliff that got crazy steep when the FED entered what Jim Cramer calls the Malcolm X, ‘ By Any Means Necessary’ Policy mode…

Let’s look back on what Cramer said  in August, I lightened up on  many of my positions then, thanks Jim!!! We love ya!! Look at the DOW in this clip, yeah, 11,000 plus, yep Cramer nailed it again….

December 18, 2008. Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Big 3, Cabinet, Economy, Finance, Foreclosures, Housing, Politics, Popular Culture, TARP, Unemployment Statistics, Wall St.

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