Power Breakfast: Fear takes over markets, new Hawks owner, Atlanta schools, referendum, Delta, AirTran, oil prices

Will fear be conquered on Wall Street today or will we get more another dose of it?

The Dow Jones industrial average fell 634.76 points Monday, the first trading day since Standard & Poor’s downgraded American debt, Associated Press writes. It was the sixth-worst point decline for the Dow in the last 112 years and the worst drop since December 2008. Every stock in the S&P 500 index declined.

But the S&P downgrade wasn’t the only catalyst Monday, AP writes. Investors worried about the slowing U.S. economy, escalating debt problems threatening Europe and the prospect that fear in the markets would reinforce itself, as it did during the financial crisis in the fall of 2008.

“‘What’s rocking the market is a growth scare,” said Kathleen Gaffney, co-manager of the $20 billion Loomis Sayles bond fund. “The market is under a lot of stress that really has little to do with the downgrade.”

Instead, Gaffney said, investors are focused on worries about another recession and “how Europe and the U.S. are going to work their way out of a high debt burden” if economic growth remains slow, AP writes.

Also in the AJC:

In other words:

- Henry Unger, The Biz Beat

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12 comments Add your comment

Wondering

August 9th, 2011
6:32 am

How many Obama supporters are still excited about his “Hope and Change”?

James

August 9th, 2011
6:34 am

Obama has got to go. Blaming the Tea Party, Republicans and everyone expect himself ????

Soon, he will be proposing another giant stimulus to be paid for by “tax the rich” scheme.

Skip

August 9th, 2011
6:46 am

Who cares, it’s not like the high Dow translated into any jobs for Americans. The best thing for the economy is the falling gas prices.

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At Least Kiss Me First

August 9th, 2011
7:28 am

@Skip

You didn’t do that well in Business School huh?

strategery

August 9th, 2011
7:36 am

i’ll take hope and change over compassionate conservatism any day of the week…

Truthpaste

August 9th, 2011
7:43 am

“i’ll take hope and change over compassionate conservatism any day of the week”

Of course you will, the Obama worshippers are still get their entitlements. Kool-aid drinkers hate the taste of tea!

[...] American debt, Associated Press writes. It was the sixth-worst point decline for the Dow in the … – Bing News Tagged as: Chicago, debt, downgrades, Fannie, Freddie, SunTimes, U.S.backed Leave a comment [...]

dbm

August 9th, 2011
8:27 am

GOP is too greedy to raise taxes on their precious rich supporters… they’re screwing us all.

Unions Now

August 9th, 2011
11:02 am

this economic collapse is all due to the tea party. Workers must organize and former bigger, more powerful unions to fight the greedy republicans and tea party trying to get themselves richer at the expense of workers! I’m tired of this.

fight for us

August 9th, 2011
11:59 am

Agree with dbm and Unions Now! We liberals have absolutely no money, the rich conservatives have hidden it all and will not allow taxes to be raised to fund our needs. The tea party is a fringe racist group that wants all democrats to be poor. No one will give us a job and they want to take away our rights to money and help from the governemnt. Our party cannot survive until we get people with big money to back us. Pres. Obama needs to keep to his promise of having the rich pay their fair share. It’s not fair and I’m tired of this, too!

Shabootyquiqui

August 9th, 2011
12:57 pm

“The Dow Jones industrial average fell 634.76 points Monday,…”

That’s what is known as a buying opportunity. There are some once in a lifetime deals available right now in the equity and real estate markets for people who are willing to avoid whining and to take action.

Matters not whether you’re Dem or GOP, union or non-union, you can make serious money if you just try.