Stocks Plummet in Flight From Risk

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  1. mortgage-backed security
    a security created when a group of mortgages are gathered together and bonds are sold to other institutions or the public; investors receive a portion of the interest payments on the mortgages as well as the principal payments; usually guaranteed by the government
    Mr. Arnold specifically mentioned American International Group’s lawsuit against Bank of America over hundreds of mortgage-backed securities in what could be the largest such action by a single investor.
  2. blue chip
    a blue poker chip with the highest value
    The Euro Stoxx 50 index, a barometer of euro zone blue chips, fell 3.72 percent, while the FTSE 100 index in London fell 3.39 percent.
  3. repurchase
    buy what had previously been sold, lost, or given away
    But there were also underlying economic problems weighing on the sector, including those related to mortgage repurchase issues.
  4. plummet
    drop sharply
    Wall Street stocks plummeted on Monday as skittish investors, already concerned about the economy, struggled to work out the implications of an unprecedented downgrade of the United States government’s credit rating and sought safer places to put their money.
  5. multimedia
    the use of many types of communication simultaneously
    Multimedia
    Assessing a Downgrade
    Graphic
    S.& P.’s Debt Ratings Around the Globe
    Related

    FiveThirtyEight: Why S.&P.’s Ratings Are Substandard and Porous (August 8, 2011)
    Global Finance Leaders Pledge Bold Action to Calm Markets (August 8, 2011)

    Enlarge This Image
    Doug Mills/The New York Times

    President Obama defended the country's credit worthiness on Monday.
  6. investor
    someone who commits capital to gain financial returns
    Wall Street stocks plummeted on Monday as skittish investors, already concerned about the economy, struggled to work out the implications of an unprecedented downgrade of the United States government’s credit rating and sought safer places to put their money.
  7. New York Stock Exchange
    a stock exchange in New York
    Doreen Mogavero, a trader at the New York Stock Exchange, said traders had canceled vacations, and the exchange operator brought in extra staff to make sure the systems were working properly, as it anticipated a surge in volumes.
  8. bond
    a connection that fastens things together
    Guy LeBas, chief fixed-income strategist for Janney Montgomery Scott, said higher prices for bonds were “a testament to the fact that global investors view U.S. bonds as the safe-haven asset choice.”
  9. strategist
    an expert in systematic plans of action
    “The rapidity of the decline and its force now rivals almost anything we’ve seen in the post-war era,” said Dan Greenhaus, the chief global strategist for BTIG, a financial services firm.
  10. interest rate
    the percentage of a sum of money charged for its use
    Kevin H. Giddis, the executive managing director and president for fixed-income capital markets at Morgan Keegan & Company, said the Federal Open Markets Committee was not likely to take action on interest rates, but would most likely discuss what policies would give support to the market.
  11. restructure
    construct or form anew or provide with a new structure
    It did not specify which bonds it would buy, but hinted it would be Spain and Italy by welcoming their efforts to restructure their economies and cut spending.
  12. porous
    full of holes
    Multimedia
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    S.& P.’s Debt Ratings Around the Globe
    Related

    FiveThirtyEight: Why S.&P.’s Ratings Are Substandard and Porous (August 8, 2011)
    Global Finance Leaders Pledge Bold Action to Calm Markets (August 8, 2011)

    Enlarge This Image
    Doug Mills/The New York Times

    President Obama defended the country's credit worthiness on Monday.
  13. underlie
    be underneath
    But there were also underlying economic problems weighing on the sector, including those related to mortgage repurchase issues.
  14. Freddie Mac
    a corporation authorized by Congress to provide a secondary market for residential mortgages
    Following a dismal opening in the wake of lower European and Asian markets, stocks took a sharper turn downward as Standard & Poor’s announced additional downgrades, including cuts to the debt ratings of the housing giants Fannie Mae and Freddie Mac.
  15. skittish
    unpredictably excitable, especially of horses
    Wall Street stocks plummeted on Monday as skittish investors, already concerned about the economy, struggled to work out the implications of an unprecedented downgrade of the United States government’s credit rating and sought safer places to put their money.
  16. assess
    estimate the nature, quality, ability or significance of
    Multimedia
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    Related

    FiveThirtyEight: Why S.&P.’s Ratings Are Substandard and Porous (August 8, 2011)
    Global Finance Leaders Pledge Bold Action to Calm Markets (August 8, 2011)

    Enlarge This Image
    Doug Mills/The New York Times

    President Obama defended the country's credit worthiness on Monday.
  17. Fannie Mae
    a federally chartered corporation that purchases mortgages
    Following a dismal opening in the wake of lower European and Asian markets, stocks took a sharper turn downward as Standard & Poor’s announced additional downgrades, including cuts to the debt ratings of the housing giants Fannie Mae and Freddie Mac.
  18. benchmark
    a surveyor's mark on an object of predetermined position
    The Treasury’s benchmark 10-year note yield was down to 2.37 percent from 2.56 percent on Friday.
  19. credit rating
    an estimate, based on previous dealings, of a person's or an organization's ability to fulfill their financial commitments
    Wall Street stocks plummeted on Monday as skittish investors, already concerned about the economy, struggled to work out the implications of an unprecedented downgrade of the United States government’s credit rating and sought safer places to put their money.
  20. central bank
    a government monetary authority that issues currency and regulates the supply of credit and holds the reserves of other banks and sells new issues of securities for the government
    The interest rates on Spanish and Italian bonds plummeted after the European Central Bank expanded its purchases of government debt to support those countries for the first time.
  21. implication
    something that is inferred
    Wall Street stocks plummeted on Monday as skittish investors, already concerned about the economy, struggled to work out the implications of an unprecedented downgrade of the United States government’s credit rating and sought safer places to put their money.
  22. stock market
    an exchange where security trading is conducted by professional stockbrokers
    “That’s the main driver” of the stock market declines, he said.
  23. stock exchange
    an exchange where security trading is conducted by professional stockbrokers
    Doreen Mogavero, a trader at the New York Stock Exchange, said traders had canceled vacations, and the exchange operator brought in extra staff to make sure the systems were working properly, as it anticipated a surge in volumes.
  24. index
    alphabetical listing of names and topics with page numbers
    Just before the close of the trading session, the broader market as measured by the Standard & Poor’s 500-stock index was down 65.05 points, or 5.42 percent.
  25. analyst
    someone who is skilled at interpreting data
    So analysts were asking why the market behaved as it did.
  26. liquidity
    the state in which a substance exhibits a readiness to flow
    “This country has an economic problem, which can only be fixed with jobs, not governmental liquidity, and that is the one that worries me the most.”
  27. global
    involving the entire earth
    Multimedia
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    Related

    FiveThirtyEight: Why S.&P.’s Ratings Are Substandard and Porous (August 8, 2011)
    Global Finance Leaders Pledge Bold Action to Calm Markets (August 8, 2011)

    Enlarge This Image
    Doug Mills/The New York Times

    President Obama defended the country's credit worthiness on Monday.
  28. testament
    strong evidence for something
    Guy LeBas, chief fixed-income strategist for Janney Montgomery Scott, said higher prices for bonds were “a testament to the fact that global investors view U.S. bonds as the safe-haven asset choice.”
  29. ratify
    approve and express assent, responsibility, or obligation
    European leaders agreed last month to revamp their bailout fund to allow it to purchase bonds on the secondary market, but those powers still have to be drafted and ratified by national parliaments, which will take weeks, at best.
  30. slowdown
    the act of slowing down or falling behind
    Fears of a slowdown in the economy also hit energy stocks.
  31. stocks
    a frame that supports a boat while it is under construction
    Wall Street stocks plummeted on Monday as skittish investors, already concerned about the economy, struggled to work out the implications of an unprecedented downgrade of the United States government’s credit rating and sought safer places to put their money.
  32. percent
    a proportion in relation to a whole
    Just before the close of the trading session, the broader market as measured by the Standard & Poor’s 500-stock index was down 65.05 points, or 5.42 percent.
  33. United States government
    the executive and legislative and judicial branches of the federal government of the United States
    Wall Street stocks plummeted on Monday as skittish investors, already concerned about the economy, struggled to work out the implications of an unprecedented downgrade of the United States government’s credit rating and sought safer places to put their money.
  34. fitch
    dark brown mustelid of woodlands of Eurasia that gives off an unpleasant odor when threatened
    But other agencies, including Moody’s and Fitch, have stuck with their ratings.
  35. stock
    a supply of something available for future use
    Wall Street stocks plummeted on Monday as skittish investors, already concerned about the economy, struggled to work out the implications of an unprecedented downgrade of the United States government’s credit rating and sought safer places to put their money.
  36. specify
    be particular about
    It did not specify which bonds it would buy, but hinted it would be Spain and Italy by welcoming their efforts to restructure their economies and cut spending.
  37. graphic
    written or drawn or engraved
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    FiveThirtyEight: Why S.&P.’s Ratings Are Substandard and Porous (August 8, 2011)
    Global Finance Leaders Pledge Bold Action to Calm Markets (August 8, 2011)

    Enlarge This Image
    Doug Mills/The New York Times

    President Obama defended the country's credit worthiness on Monday.
  38. comment
    a statement that expresses a personal opinion
    Readers’ Comments

    Share your thoughts.
  39. equity
    the quality of being fair, reasonable, or impartial
    Post a Comment »
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    The declines, coming in the first opportunity for investors to sell since Standard & Poor’s cut its rating on the nation’s long-term debt late Friday, followed losses in global markets and set United States equities on track to extend losses that were beginning to recall the days of the 2008 financial crisis.
  40. pedestrian
    a person who travels by foot
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    FiveThirtyEight: Why S.&P.’s Ratings Are Substandard and Porous (August 8, 2011)
    Global Finance Leaders Pledge Bold Action to Calm Markets (August 8, 2011)

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    Jin Lee/Associated Press

    A pedestrian outside the New York Stock Exchange on Monday.
  41. mortgage
    a conveyance of property as security for repaying a loan
    But there were also underlying economic problems weighing on the sector, including those related to mortgage repurchase issues.
  42. rate
    a quantity considered as a proportion of another quantity
    Wall Street stocks plummeted on Monday as skittish investors, already concerned about the economy, struggled to work out the implications of an unprecedented downgrade of the United States government’s credit rating and sought safer places to put their money.
  43. rampant
    occurring or increasing in an unrestrained way
    “Fear is rampant in the market right now, the fear that we will have a double dip recession,” said Brian M. Youngberg, the energy analyst for Edward Jones.
  44. news agency
    an agency to collects news reports for newspapers and distributes it electronically
    News agencies cited traders saying the central bank was intervening in the secondary market to buy the securities.
  45. decline
    grow worse
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    The declines, coming in the first opportunity for investors to sell since Standard & Poor’s cut its rating on the nation’s long-term debt late Friday, followed losses in global markets and set United States equities on track to extend losses that were beginning to recall the days of the 2008 financial crisis.
  46. barometer
    an instrument that measures atmospheric pressure
    The Euro Stoxx 50 index, a barometer of euro zone blue chips, fell 3.72 percent, while the FTSE 100 index in London fell 3.39 percent.
  47. economy
    the system of production and distribution and consumption
    Wall Street stocks plummeted on Monday as skittish investors, already concerned about the economy, struggled to work out the implications of an unprecedented downgrade of the United States government’s credit rating and sought safer places to put their money.
  48. react
    show a response to something
    Those stocks were reacting to the European debt problems as well as the downgrade news, said Jason Arnold, an analyst with RBC Capital Markets.
  49. intervene
    be placed or located between other things
    News agencies cited traders saying the central bank was intervening in the secondary market to buy the securities.
  50. cite
    make reference to
    News agencies cited traders saying the central bank was intervening in the secondary market to buy the securities.
  51. implement
    a piece of equipment or a tool used for a specific purpose
    But in a statement issued late Sunday after an emergency conference call, the bank said it would “actively implement” its bond-buying program to address “dysfunctional market segments.”
  52. weigh
    have a certain heft
    But there were also underlying economic problems weighing on the sector, including those related to mortgage repurchase issues.
  53. segment
    one of several parts that fit with others to make a whole
    But in a statement issued late Sunday after an emergency conference call, the bank said it would “actively implement” its bond-buying program to address “dysfunctional market segments.”
  54. European
    of or relating to or characteristic of Europe
    Following a dismal opening in the wake of lower European and Asian markets, stocks took a sharper turn downward as Standard & Poor’s announced additional downgrades, including cuts to the debt ratings of the housing giants Fannie Mae and Freddie Mac.
  55. composite
    consisting of separate interconnected parts
    In Hong Kong, the Hang Seng index fell 2.2 percent, and in Shanghai the composite index closed 3.8 percent lower.
  56. palpable
    capable of being perceived
    The tension in the markets was palpable on Monday.
  57. recession
    the act of returning control
    “Fear is rampant in the market right now, the fear that we will have a double dip recession,” said Brian M. Youngberg, the energy analyst for Edward Jones.
  58. finance
    the commercial activity of providing funds and capital
    Multimedia
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    S.& P.’s Debt Ratings Around the Globe
    Related

    FiveThirtyEight: Why S.&P.’s Ratings Are Substandard and Porous (August 8, 2011)
    Global Finance Leaders Pledge Bold Action to Calm Markets (August 8, 2011)

    Enlarge This Image
    Doug Mills/The New York Times

    President Obama defended the country's credit worthiness on Monday.
  59. rout
    an overwhelming defeat
    The rout in equities brought global stock markets, as measured by the MSCI all-country index, back to their levels of last September.
  60. adjust
    alter or regulate so as to conform to a standard
    Adjusted for inflation, however, gold remains well below its record of more than $2,400 an ounce, according to Capital Economics.
  61. stimulate
    cause to act in a specified manner
    Some investors are turning their attention to a meeting of the Federal Reserve this week and whether there will be any new measures to stimulate the economy.
  62. pledge
    a binding commitment to do or give or refrain from something
    Multimedia
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    FiveThirtyEight: Why S.&P.’s Ratings Are Substandard and Porous (August 8, 2011)
    Global Finance Leaders Pledge Bold Action to Calm Markets (August 8, 2011)

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    Doug Mills/The New York Times

    President Obama defended the country's credit worthiness on Monday.
  63. Dow Jones
    an indicator of stock market prices
    The Dow Jones industrial average was down 513.29 points, or 4.48 percent, and the Nasdaq was down 135.11 points, or 5.34 percent.
  64. coupled
    joined together especially in a pair or pairs
    They suggested that a rash of bad economic news, coupled with the debt ceiling talks over the past weeks and then the nation’s first-ever downgrade, ganged up and bullied the markets.
  65. intervening
    occurring between events, spaces, or points in time
    News agencies cited traders saying the central bank was intervening in the secondary market to buy the securities.
  66. soothe
    cause to feel better
    European equities opened higher, but the rally fizzled, dashing hopes that the E.C.B.’s actions would be enough to soothe broader market jitters.
  67. standard
    a basis for comparison
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    The declines, coming in the first opportunity for investors to sell since Standard & Poor’s cut its rating on the nation’s long-term debt late Friday, followed losses in global markets and set United States equities on track to extend losses that were beginning to recall the days of the 2008 financial crisis.
  68. Federal Reserve
    the central bank of the United States
    Some investors are turning their attention to a meeting of the Federal Reserve this week and whether there will be any new measures to stimulate the economy.
  69. lawsuit
    any proceeding in a court whereby an individual seeks a legal remedy
    Mr. Arnold specifically mentioned American International Group’s lawsuit against Bank of America over hundreds of mortgage-backed securities in what could be the largest such action by a single investor.
  70. yield
    give or supply
    The Treasury’s benchmark 10-year note yield was down to 2.37 percent from 2.56 percent on Friday.
  71. asset
    a useful or valuable quality
    Guy LeBas, chief fixed-income strategist for Janney Montgomery Scott, said higher prices for bonds were “a testament to the fact that global investors view U.S. bonds as the safe-haven asset choice.”
  72. financing
    the act of funding
    On Monday, Moody’s released a report discussing the decision, saying the United States has “unmatched access to financing, meaning that the U.S. government can support higher debt levels than other governments.”
  73. anticipate
    regard something as probable or likely
    Doreen Mogavero, a trader at the New York Stock Exchange, said traders had canceled vacations, and the exchange operator brought in extra staff to make sure the systems were working properly, as it anticipated a surge in volumes.
  74. underlying
    in the nature of something though not readily apparent
    But there were also underlying economic problems weighing on the sector, including those related to mortgage repurchase issues.
  75. liability
    the state of being legally obliged and responsible
    “For those that have sizeable mortgage repurchase liability exposure, the market is concerned about that as well,” said Mr. Arnold.
  76. unprecedented
    novel; having no earlier occurrence
    Wall Street stocks plummeted on Monday as skittish investors, already concerned about the economy, struggled to work out the implications of an unprecedented downgrade of the United States government’s credit rating and sought safer places to put their money.
  77. globe
    an object with a spherical shape
    Multimedia
    Assessing a Downgrade
    Graphic
    S.& P.’s Debt Ratings Around the Globe
    Related

    FiveThirtyEight: Why S.&P.’s Ratings Are Substandard and Porous (August 8, 2011)
    Global Finance Leaders Pledge Bold Action to Calm Markets (August 8, 2011)

    Enlarge This Image
    Doug Mills/The New York Times

    President Obama defended the country's credit worthiness on Monday.
  78. include
    have as a part; be made up out of
    Following a dismal opening in the wake of lower European and Asian markets, stocks took a sharper turn downward as Standard & Poor’s announced additional downgrades, including cuts to the debt ratings of the housing giants Fannie Mae and Freddie Mac.
  79. specifically
    in distinction from others
    Mr. Arnold specifically mentioned American International Group’s lawsuit against Bank of America over hundreds of mortgage-backed securities in what could be the largest such action by a single investor.
  80. financial
    involving fiscal matters
    Post a Comment »
    Read All Comments (336) »

    The declines, coming in the first opportunity for investors to sell since Standard & Poor’s cut its rating on the nation’s long-term debt late Friday, followed losses in global markets and set United States equities on track to extend losses that were beginning to recall the days of the 2008 financial crisis.
  81. triple
    having three units or components or elements
    President Obama said on Monday that the country needs a long-term approach to deficit reduction, but that the markets “continue to believe our credit status is triple-A.”

    “That doesn’t mean we don’t have a problem,” he added in a televised speech.
  82. credit
    an estimate of ability to fulfill financial commitments
    Wall Street stocks plummeted on Monday as skittish investors, already concerned about the economy, struggled to work out the implications of an unprecedented downgrade of the United States government’s credit rating and sought safer places to put their money.
  83. adjusted
    altered to accommodate to certain requirements
    Adjusted for inflation, however, gold remains well below its record of more than $2,400 an ounce, according to Capital Economics.
  84. image
    a visual representation produced on a surface
    Multimedia
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    Related

    FiveThirtyEight: Why S.&P.’s Ratings Are Substandard and Porous (August 8, 2011)
    Global Finance Leaders Pledge Bold Action to Calm Markets (August 8, 2011)

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    Doug Mills/The New York Times

    President Obama defended the country's credit worthiness on Monday.
  85. limit
    as far as something can go
    S.& P. had warned investors earlier this year that it would act if Congress did not agree to increase the government’s debt ceiling, basically a borrowing limit, and adopt a long-term plan for reducing its debts by at least $4 trillion over the next decade.
  86. operator
    an agent that operates some apparatus or machine
    Doreen Mogavero, a trader at the New York Stock Exchange, said traders had canceled vacations, and the exchange operator brought in extra staff to make sure the systems were working properly, as it anticipated a surge in volumes.
  87. measure
    determine the dimensions of something or somebody
    Just before the close of the trading session, the broader market as measured by the Standard & Poor’s 500-stock index was down 65.05 points, or 5.42 percent.
  88. economics
    science dealing with the circulation of goods and services
    Adjusted for inflation, however, gold remains well below its record of more than $2,400 an ounce, according to Capital Economics.
  89. rash
    imprudently incurring risk
    They suggested that a rash of bad economic news, coupled with the debt ceiling talks over the past weeks and then the nation’s first-ever downgrade, ganged up and bullied the markets.
  90. expand
    extend in one or more directions
    The interest rates on Spanish and Italian bonds plummeted after the European Central Bank expanded its purchases of government debt to support those countries for the first time.
  91. tension
    the action of stretching something tight
    The tension in the markets was palpable on Monday.
  92. haven
    a sheltered port where ships can take on or discharge cargo
    Guy LeBas, chief fixed-income strategist for Janney Montgomery Scott, said higher prices for bonds were “a testament to the fact that global investors view U.S. bonds as the safe-haven asset choice.”
  93. purchase
    acquire by means of a financial transaction
    The interest rates on Spanish and Italian bonds plummeted after the European Central Bank expanded its purchases of government debt to support those countries for the first time.
  94. expanded
    increased in extent or size or bulk or scope
    The interest rates on Spanish and Italian bonds plummeted after the European Central Bank expanded its purchases of government debt to support those countries for the first time.
  95. rally
    gather or bring together
    European equities opened higher, but the rally fizzled, dashing hopes that the E.C.B.’s actions would be enough to soothe broader market jitters.
  96. dismal
    causing dejection
    Following a dismal opening in the wake of lower European and Asian markets, stocks took a sharper turn downward as Standard & Poor’s announced additional downgrades, including cuts to the debt ratings of the housing giants Fannie Mae and Freddie Mac.
  97. contribute
    give, provide, or supply something
    Fears that the bloc’s sovereign debt crisis would spread to the much bigger economies of Italy and Spain had contributed greatly to recent market losses.
  98. era
    a period marked by distinctive character
    “The rapidity of the decline and its force now rivals almost anything we’ve seen in the post-war era,” said Dan Greenhaus, the chief global strategist for BTIG, a financial services firm.
  99. announce
    make known
    Following a dismal opening in the wake of lower European and Asian markets, stocks took a sharper turn downward as Standard & Poor’s announced additional downgrades, including cuts to the debt ratings of the housing giants Fannie Mae and Freddie Mac.
  100. concern
    something that interests you because it is important
    Wall Street stocks plummeted on Monday as skittish investors, already concerned about the economy, struggled to work out the implications of an unprecedented downgrade of the United States government’s credit rating and sought safer places to put their money.
  101. exposure
    the state of being exposed to harm
    “For those that have sizeable mortgage repurchase liability exposure, the market is concerned about that as well,” said Mr. Arnold.
  102. action
    something done (usually as opposed to something said)
    Multimedia
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    S.& P.’s Debt Ratings Around the Globe
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    FiveThirtyEight: Why S.&P.’s Ratings Are Substandard and Porous (August 8, 2011)
    Global Finance Leaders Pledge Bold Action to Calm Markets (August 8, 2011)

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    Doug Mills/The New York Times

    President Obama defended the country's credit worthiness on Monday.
  103. income
    the amount of money one makes over a period of time
    Guy LeBas, chief fixed-income strategist for Janney Montgomery Scott, said higher prices for bonds were “a testament to the fact that global investors view U.S. bonds as the safe-haven asset choice.”
  104. trade
    the commercial exchange of goods and services
    Just before the close of the trading session, the broader market as measured by the Standard & Poor’s 500-stock index was down 65.05 points, or 5.42 percent.
  105. level
    a relative position or degree of value in a graded group
    On Monday, Moody’s released a report discussing the decision, saying the United States has “unmatched access to financing, meaning that the U.S. government can support higher debt levels than other governments.”
  106. Treasury
    the federal department that collects revenue and administers federal finances; the Treasury Department was created in 1789
    The Treasury’s benchmark 10-year note yield was down to 2.37 percent from 2.56 percent on Friday.
  107. crude
    belonging to an early stage of technical development
    United States crude oil futures for September delivery fell 4.2 percent to $83.21 a barrel.
  108. bold
    fearless and daring
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    FiveThirtyEight: Why S.&P.’s Ratings Are Substandard and Porous (August 8, 2011)
    Global Finance Leaders Pledge Bold Action to Calm Markets (August 8, 2011)

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    Doug Mills/The New York Times

    President Obama defended the country's credit worthiness on Monday.
  109. fell
    cause to go down by or as if by delivering a blow
    The yield on 10-year Spanish bonds dropped by 88 basis points, while comparable Italian yields fell 80 basis points.
  110. associate
    bring or come into action
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    FiveThirtyEight: Why S.&P.’s Ratings Are Substandard and Porous (August 8, 2011)
    Global Finance Leaders Pledge Bold Action to Calm Markets (August 8, 2011)

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    Jin Lee/Associated Press

    A pedestrian outside the New York Stock Exchange on Monday.
  111. economic
    of or relating to production and management of wealth
    They suggested that a rash of bad economic news, coupled with the debt ceiling talks over the past weeks and then the nation’s first-ever downgrade, ganged up and bullied the markets.
  112. warn
    notify of danger, potential harm, or risk
    S.& P. had warned investors earlier this year that it would act if Congress did not agree to increase the government’s debt ceiling, basically a borrowing limit, and adopt a long-term plan for reducing its debts by at least $4 trillion over the next decade.
  113. accord
    concurrence of opinion
    Adjusted for inflation, however, gold remains well below its record of more than $2,400 an ounce, according to Capital Economics.
  114. deficit
    an amount that is less than expected or required
    President Obama said on Monday that the country needs a long-term approach to deficit reduction, but that the markets “continue to believe our credit status is triple-A.”

    “That doesn’t mean we don’t have a problem,” he added in a televised speech.
  115. anticipated
    expected hopefully
    Doreen Mogavero, a trader at the New York Stock Exchange, said traders had canceled vacations, and the exchange operator brought in extra staff to make sure the systems were working properly, as it anticipated a surge in volumes.
  116. adopt
    take into one's family
    S.& P. had warned investors earlier this year that it would act if Congress did not agree to increase the government’s debt ceiling, basically a borrowing limit, and adopt a long-term plan for reducing its debts by at least $4 trillion over the next decade.
  117. energy
    forceful exertion
    “Fear is rampant in the market right now, the fear that we will have a double dip recession,” said Brian M. Youngberg, the energy analyst for Edward Jones.
  118. draft
    a current of air
    European leaders agreed last month to revamp their bailout fund to allow it to purchase bonds on the secondary market, but those powers still have to be drafted and ratified by national parliaments, which will take weeks, at best.
  119. reflect
    throw or bend back from a surface
    They also reflected anxiety over the United States economy and Europe’s debt woes.
  120. sector
    a particular aspect of life or activity
    But there were also underlying economic problems weighing on the sector, including those related to mortgage repurchase issues.
  121. inflation
    the act of filling something with air
    Adjusted for inflation, however, gold remains well below its record of more than $2,400 an ounce, according to Capital Economics.
  122. status
    the condition or someone or something at a particular time
    President Obama said on Monday that the country needs a long-term approach to deficit reduction, but that the markets “continue to believe our credit status is triple-A.”

    “That doesn’t mean we don’t have a problem,” he added in a televised speech.
  123. woe
    misery resulting from affliction
    They also reflected anxiety over the United States economy and Europe’s debt woes.
  124. decade
    a period of 10 years
    S.& P. had warned investors earlier this year that it would act if Congress did not agree to increase the government’s debt ceiling, basically a borrowing limit, and adopt a long-term plan for reducing its debts by at least $4 trillion over the next decade.
  125. extend
    stretch out over a distance, space, time, or scope
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    The declines, coming in the first opportunity for investors to sell since Standard & Poor’s cut its rating on the nation’s long-term debt late Friday, followed losses in global markets and set United States equities on track to extend losses that were beginning to recall the days of the 2008 financial crisis.
  126. currency
    the metal or paper medium of exchange that is presently used
    Gold topped $1,700 an ounce for the first time, and the dollar continued to weaken against most major currencies.
  127. wake
    stop sleeping
    Following a dismal opening in the wake of lower European and Asian markets, stocks took a sharper turn downward as Standard & Poor’s announced additional downgrades, including cuts to the debt ratings of the housing giants Fannie Mae and Freddie Mac.
  128. average
    an intermediate scale value regarded as normal or usual
    The Dow Jones industrial average was down 513.29 points, or 4.48 percent, and the Nasdaq was down 135.11 points, or 5.34 percent.
  129. hint
    an indirect suggestion
    It did not specify which bonds it would buy, but hinted it would be Spain and Italy by welcoming their efforts to restructure their economies and cut spending.
  130. support
    the act of bearing the weight of or strengthening
    On Monday, Moody’s released a report discussing the decision, saying the United States has “unmatched access to financing, meaning that the U.S. government can support higher debt levels than other governments.”
  131. nation
    a politically organized body of people under a government
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    The declines, coming in the first opportunity for investors to sell since Standard & Poor’s cut its rating on the nation’s long-term debt late Friday, followed losses in global markets and set United States equities on track to extend losses that were beginning to recall the days of the 2008 financial crisis.
  132. reduce
    make smaller
    S.& P. had warned investors earlier this year that it would act if Congress did not agree to increase the government’s debt ceiling, basically a borrowing limit, and adopt a long-term plan for reducing its debts by at least $4 trillion over the next decade.
  133. Spanish
    of or relating to or characteristic of Spain or the people of Spain
    The interest rates on Spanish and Italian bonds plummeted after the European Central Bank expanded its purchases of government debt to support those countries for the first time.
  134. issue
    some situation or event that is thought about
    But there were also underlying economic problems weighing on the sector, including those related to mortgage repurchase issues.
  135. security
    the state of being free from danger or injury
    Mr. Arnold specifically mentioned American International Group’s lawsuit against Bank of America over hundreds of mortgage-backed securities in what could be the largest such action by a single investor.
  136. recent
    of the immediate past or just previous to the present time
    Another analyst noted that the market performance in recent weeks was bringing back echoes of the last financial crisis.
  137. broad
    having great extent from one side to the other
    Just before the close of the trading session, the broader market as measured by the Standard & Poor’s 500-stock index was down 65.05 points, or 5.42 percent.
  138. access
    the right to enter
    On Monday, Moody’s released a report discussing the decision, saying the United States has “unmatched access to financing, meaning that the U.S. government can support higher debt levels than other governments.”
  139. International
    any of several international socialist organizations
    Mr. Arnold specifically mentioned American International Group’s lawsuit against Bank of America over hundreds of mortgage-backed securities in what could be the largest such action by a single investor.
  140. recall
    bring to mind
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    The declines, coming in the first opportunity for investors to sell since Standard & Poor’s cut its rating on the nation’s long-term debt late Friday, followed losses in global markets and set United States equities on track to extend losses that were beginning to recall the days of the 2008 financial crisis.
  141. defend
    protect against a challenge or attack
    Multimedia
    Assessing a Downgrade
    Graphic
    S.& P.’s Debt Ratings Around the Globe
    Related

    FiveThirtyEight: Why S.&P.’s Ratings Are Substandard and Porous (August 8, 2011)
    Global Finance Leaders Pledge Bold Action to Calm Markets (August 8, 2011)

    Enlarge This Image
    Doug Mills/The New York Times

    President Obama defended the country's credit worthiness on Monday.
  142. suggest
    make a proposal; declare a plan for something
    They suggested that a rash of bad economic news, coupled with the debt ceiling talks over the past weeks and then the nation’s first-ever downgrade, ganged up and bullied the markets.
  143. reserve
    hold back or set aside, especially for future use
    Some investors are turning their attention to a meeting of the Federal Reserve this week and whether there will be any new measures to stimulate the economy.
  144. fund
    a reserve of money set aside for some purpose
    European leaders agreed last month to revamp their bailout fund to allow it to purchase bonds on the secondary market, but those powers still have to be drafted and ratified by national parliaments, which will take weeks, at best.
  145. government
    the system or form by which a community is ruled
    Wall Street stocks plummeted on Monday as skittish investors, already concerned about the economy, struggled to work out the implications of an unprecedented downgrade of the United States government’s credit rating and sought safer places to put their money.
  146. release
    grant freedom to; free from confinement
    On Monday, Moody’s released a report discussing the decision, saying the United States has “unmatched access to financing, meaning that the U.S. government can support higher debt levels than other governments.”
  147. sovereign
    a nation's ruler usually by hereditary right
    Fears that the bloc’s sovereign debt crisis would spread to the much bigger economies of Italy and Spain had contributed greatly to recent market losses.
  148. industrial
    of or relating to commercial enterprise
    The Dow Jones industrial average was down 513.29 points, or 4.48 percent, and the Nasdaq was down 135.11 points, or 5.34 percent.
  149. share
    assets belonging to an individual person or group
    Readers’ Comments

    Share your thoughts.
  150. additional
    further or extra
    Following a dismal opening in the wake of lower European and Asian markets, stocks took a sharper turn downward as Standard & Poor’s announced additional downgrades, including cuts to the debt ratings of the housing giants Fannie Mae and Freddie Mac.
  151. research
    a seeking for knowledge
    “The rest of the conversations should happen in Washington,” Mr. Giddis said in a research note.
  152. track
    a line or route along which something travels or moves
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    The declines, coming in the first opportunity for investors to sell since Standard & Poor’s cut its rating on the nation’s long-term debt late Friday, followed losses in global markets and set United States equities on track to extend losses that were beginning to recall the days of the 2008 financial crisis.
  153. performance
    the act of doing something successfully
    Another analyst noted that the market performance in recent weeks was bringing back echoes of the last financial crisis.
  154. president
    the leader of a republic or democracy
    Kevin H. Giddis, the executive managing director and president for fixed-income capital markets at Morgan Keegan & Company, said the Federal Open Markets Committee was not likely to take action on interest rates, but would most likely discuss what policies would give support to the market.
  155. job
    a specific piece of work required to be done as a duty
    “This country has an economic problem, which can only be fixed with jobs, not governmental liquidity, and that is the one that worries me the most.”
  156. conference
    a prearranged meeting for consultation or discussion
    But in a statement issued late Sunday after an emergency conference call, the bank said it would “actively implement” its bond-buying program to address “dysfunctional market segments.”
  157. future
    the time yet to come
    United States crude oil futures for September delivery fell 4.2 percent to $83.21 a barrel.
  158. mention
    make reference to
    Mr. Arnold specifically mentioned American International Group’s lawsuit against Bank of America over hundreds of mortgage-backed securities in what could be the largest such action by a single investor.
  159. major
    greater in scope or effect
    Gold topped $1,700 an ounce for the first time, and the dollar continued to weaken against most major currencies.
  160. Congress
    the legislature of the United States government
    S.& P. had warned investors earlier this year that it would act if Congress did not agree to increase the government’s debt ceiling, basically a borrowing limit, and adopt a long-term plan for reducing its debts by at least $4 trillion over the next decade.
  161. volume
    the property of something that is great in magnitude
    Doreen Mogavero, a trader at the New York Stock Exchange, said traders had canceled vacations, and the exchange operator brought in extra staff to make sure the systems were working properly, as it anticipated a surge in volumes.
  162. executive
    a person responsible for the administration of a business
    Kevin H. Giddis, the executive managing director and president for fixed-income capital markets at Morgan Keegan & Company, said the Federal Open Markets Committee was not likely to take action on interest rates, but would most likely discuss what policies would give support to the market.
  163. capital
    a large alphabetic character used in writing or printing
    Kevin H. Giddis, the executive managing director and president for fixed-income capital markets at Morgan Keegan & Company, said the Federal Open Markets Committee was not likely to take action on interest rates, but would most likely discuss what policies would give support to the market.
  164. approach
    move towards
    President Obama said on Monday that the country needs a long-term approach to deficit reduction, but that the markets “continue to believe our credit status is triple-A.”

    “That doesn’t mean we don’t have a problem,” he added in a televised speech.
  165. director
    someone who manages an organization
    Kevin H. Giddis, the executive managing director and president for fixed-income capital markets at Morgan Keegan & Company, said the Federal Open Markets Committee was not likely to take action on interest rates, but would most likely discuss what policies would give support to the market.
  166. parliament
    a legislative assembly in certain countries
    European leaders agreed last month to revamp their bailout fund to allow it to purchase bonds on the secondary market, but those powers still have to be drafted and ratified by national parliaments, which will take weeks, at best.
  167. struggle
    strenuous effort
    Wall Street stocks plummeted on Monday as skittish investors, already concerned about the economy, struggled to work out the implications of an unprecedented downgrade of the United States government’s credit rating and sought safer places to put their money.
  168. couple
    two items of the same kind
    They suggested that a rash of bad economic news, coupled with the debt ceiling talks over the past weeks and then the nation’s first-ever downgrade, ganged up and bullied the markets.
  169. sought
    that is looked for
    Wall Street stocks plummeted on Monday as skittish investors, already concerned about the economy, struggled to work out the implications of an unprecedented downgrade of the United States government’s credit rating and sought safer places to put their money.
  170. increase
    a process of becoming larger or longer or more numerous
    S.& P. had warned investors earlier this year that it would act if Congress did not agree to increase the government’s debt ceiling, basically a borrowing limit, and adopt a long-term plan for reducing its debts by at least $4 trillion over the next decade.
  171. address
    the place where a person or organization can be found
    But in a statement issued late Sunday after an emergency conference call, the bank said it would “actively implement” its bond-buying program to address “dysfunctional market segments.”
  172. record
    anything providing permanent evidence about past events
    Adjusted for inflation, however, gold remains well below its record of more than $2,400 an ounce, according to Capital Economics.
  173. receive
    get something; come into possession of
    Previously the bond buying had been limited to bonds from Greece, Portugal and Ireland — the three euro-zone countries that have already received international bailouts.
  174. opportunity
    a possibility from a favorable combination of circumstances
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    The declines, coming in the first opportunity for investors to sell since Standard & Poor’s cut its rating on the nation’s long-term debt late Friday, followed losses in global markets and set United States equities on track to extend losses that were beginning to recall the days of the 2008 financial crisis.
  175. policy
    a plan of action adopted by an individual or social group
    Kevin H. Giddis, the executive managing director and president for fixed-income capital markets at Morgan Keegan & Company, said the Federal Open Markets Committee was not likely to take action on interest rates, but would most likely discuss what policies would give support to the market.
  176. remain
    continue in a place, position, or situation
    Adjusted for inflation, however, gold remains well below its record of more than $2,400 an ounce, according to Capital Economics.
  177. Europe
    the 2nd smallest continent
    They also reflected anxiety over the United States economy and Europe’s debt woes.
  178. period
    an amount of time
    The S.& P. 500 was down about 14 percent over the last 11 sessions, and last week was the worst five-day trading period since November 2008.
  179. Washington
    1st President of the United States
    “The rest of the conversations should happen in Washington,” Mr. Giddis said in a research note.
  180. attention
    the act of concentrating on something
    Some investors are turning their attention to a meeting of the Federal Reserve this week and whether there will be any new measures to stimulate the economy.
Created on Mon Aug 08 16:05:03 EDT 2011

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