It’s just never happened before, it’s completely unprecedented. No doubt if the FED had made the same move on October 19, of 1987, or on October 24, 1929we would have avoided those one day meltdowns as well. There is little doubt that yesterday was going to match those days as one of the worst in history. I’m not talking like 9/11, oh we just got attacked and our buildings got smoked market crashes. No, I’m talking more like our markets are wicked overvalued and prices need to be adjusted now!
Well, like I said yesterday, all bets are off the table now. No clue where things go from here. My gut tells me that we’ll open down a good hundred points or so today, but thats where the line is drawn. Since the Fed has never attempted to stop the market bleeding when it needs to bleed before, you just don’t know how people are going to react. However, today will be a VERY closely watched day. Any excess weakness shown and forget it, the bottom will fall out. Conversely, I could see this sparking a nice month or so long rally as analysts forecast in new nominal profits from cheap borrowing.
Either way, we are now are ZERO REAL INTEREST RATES. The government is telling us that we should be indifferent between spending a dollar today and spending one tommorrow. Forget the whole time value of money thing. Inflation is here and will come to reckon.
January 23rd, 2008 at 9:30 am
Opens 150 down and closes 300 up
January 23rd, 2008 at 9:43 am
Agreed. With help of baby jesus we will be fine and the world will not come to an end.
OK time to buy
January 23rd, 2008 at 10:14 am
The world is only going to come to an end when the Ice Age hits in about 100 years… No big deal. We will still survive.
January 23rd, 2008 at 1:19 pm
I keep posting, you keep denying, but every day for this entire year has proven me right. The DOW has lost almost 25% now since the peak late last year. We’re in the middle of a national economic crisis and everyone seems to be pretty cool with it?
January 23rd, 2008 at 1:45 pm
yah it’s peachy. I see the bottom.
January 23rd, 2008 at 2:34 pm
How do you fix an economic crisis? Cash out your 401ks? Or just keep moving forward?
January 23rd, 2008 at 4:26 pm
as always sergey and i were correct and believe it or not baby JC was not involved.
January 23rd, 2008 at 4:50 pm
off by 2 cents. I’m sorry i will try to be perfect next time
March 3rd, 2011 at 11:44 am
Hm, Now i’m comfortable with this but still not wholly sure, so i’m going to research a bit more.