DOW PLUNGES ALMOST 1,000 POINTS INTRA-DAY

Fat Finger Bullcrap



Jim Sinclair: Dow Falls 1,000 Points Intra-Day




Stock Selloff May Have Been Triggered by a Trader Error

The Dow plunged nearly 1,000 points before paring those losses, apparently triggered by a trader error. Sources told CNBC a trader entered a "b" for billion instead of an "m" for million in a trade possibly involving Procter & Gamble.
Biggest Market Drops Ever


P&G Trades Won't Stand: NYSE CEO


EU, Euro Are Doomed: Dennis Gartman


Please take note of the NYT comment on gold:
Stock Markets Recover From 9% Drop, Finish Day Down About 3%
Wall Street reeled through a volatile day, with stocks closing sharply lower after recoiling from a brief plunge of nearly 9 percent. The Dow Jones Industrial Average closed down 347.80 points or 3.2 percent, and the S. & P. 500 index dropped 37.75 points or 3.24 percent, after fears over Europe’s debt crisis and computer-driven trading sparked a massive selloff. The euro slid to $1.2616 to the dollar, and investors fled to Treasuries, gold and other safe-haven investments.



Jim Sinclair’s Commentary
Reintroduce quantitative easing? It never stopped.
The banks have been the beards for the Fed buying US Treasury auctions.
Fed Faces Deflation With Few Weapons, Rosenberg Says: Tom Keene By Mary Childs and Tom Keene
May 5 (Bloomberg) — The Federal Reserve should be worried about deflation and has few weapons left in its arsenal to combat it, according to David Rosenberg, chief economist of Gluskin Sheff & Associates Inc. in Toronto.
Excess capacity in manufacturing, labor and housing is pushing prices down, Rosenberg said in a Bloomberg Radio interview today with Tom Keene, and interest rates at record lows leave the central bank with little means of countering deflation.
“What are the other options?” Rosenberg said. “Can they cut rates below zero? Well, unlikely. So what’s really going to be left? What is going to be the bullet left in the chamber to deal with the outright deflation?”
Fed Chairman Ben S. Bernanke and his colleagues aren’t in a hurry to withdraw stimulus with 15 million Americans unemployed, even as economic growth outpaces analysts’ forecasts. Slack labor markets have pushed inflation lower, allowing the Fed to keep its zero interest-rate policy in place to encourage businesses and households to borrow and spend.
The central bank will likely reintroduce quantitative easing measures because the other stops are already pulled, according to Rosenberg.
“The Fed will be expanding its balance sheet even further,” he said.
More…


Moody's Warns Greek Crisis Could Spread to UK


The Laughable Nature of GDP Growth (The Mogambo Guru)


Threats of Civil War


UK Bond Traders Poised for Election-Night Selloff


In a recent issue of his excellent (and free) Outside The Box e-newsletter, John Mauldin had these comments: "It now looks like almost 30% of the Greek financing will come from the IMF, rather than just a small portion. And since 40% of the IMF is funded by US taxpayers, and that debt will be junior to current bond holders (if the rumors are true) I can't tell you how outraged that makes me. What that means is that US (and Canadian and British, etc.) tax payers will be giving money to Greece who will use a lot of it to roll over old bonds, letting European banks and funds reduce their exposure to Greece while tax-payers all over the world who fund the IMF assume that risk."