Black Thursday

(8 am. – promoted by ek hornbeck)

The stock market has just dropped 7.3%.  So far this month, the Dow has fallen nearly 25%.  In October 1929, it dropped 20%.  The market has already exceeded the crash of 1929.

Don’t like relying upon the Dow?  In the crash of 1987, the Standard and Poor’s 500-stock index dropped 20.5%.  So far, in the last eight days, the S&P 500 is down 22%.

I have no words.  The TED spread is an unbelievable 4.23 – over double the average of the last year, meaning that the premium to borrow money is so high that it is nearly impossible for any entity to do so.  Nearly 1 in 6 homeowners – almost 20%! – owe more on their mortgage that their homes are worth.

This isn’t even supposed to be possible.  Safeguards instituted after the crash of 1987 are supposed to stop trading entirely before these kinds of drops happen.  It beggars belief.

Like I said, I have no words.  But you need to pay attention to this.  One day you’ll tell your grandkids about how you were there during the crash of 2008.

22 comments

Skip to comment form

    • Jay Elias on October 9, 2008 at 11:29 pm
      Author

    …because I won’t go to temple for Yom Kippur, I’ll give in.

    That being said, I know it isn’t.

    • Robyn on October 9, 2008 at 11:36 pm

    …is not to sell low.

  1. Since States can’t sell bonds, the era of prison building is over.

    Pennsylvania’s already responded by dramatically revising the sentencing structure, Texas is next.

Comments have been disabled.