tag:blogger.com,1999:blog-5492310882851199969.post3872298774995736355..comments2024-01-09T15:03:54.986-05:00Comments on Wolf Howling: Financial PanicGWhttp://www.blogger.com/profile/05814327154035433443noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5492310882851199969.post-43300672770195656952008-10-06T19:21:00.000-04:002008-10-06T19:21:00.000-04:00You are of course correct. But that was not based...You are of course correct. But that was not based on the credit crunch we are seeing today, nor was 87 crash based on a truly fundamental disconnect in our financial system that we have with the mortgage situation. That one day loss was driven in large measure by simple computerized trading. Indeed, for all the problems we are having with mortgages, many more are on the way. Alt A mortgages are expected to be the next class to go into large scale default. <BR/><BR/>I was never fazed by the 87 crash, nor by the S&L crash. Now I am concerned. The size of the stock market loss does not bother me anywhere near as much as the credit freeze. I am hopeful that Treasury will start to get this unscrewed, but a small spot in the back of my admittedly small brain is saying this could spiral out of control a la 1929.GWhttps://www.blogger.com/profile/05814327154035433443noreply@blogger.comtag:blogger.com,1999:blog-5492310882851199969.post-13376361544185933382008-10-06T19:09:00.000-04:002008-10-06T19:09:00.000-04:00Jim Cramer predicts a 20% drop in value for stocks...<I> Jim Cramer predicts a 20% drop in value for stocks in the near term.</I><BR/><BR/>WOW! Didn't the Dow drop 22% or 23% IN ONE DAY in 1987?<BR/>Did we survive that? Are we still here?<BR/><BR/>Something that struck me about the headlines today.<BR/><BR/>At one point, the Dow had dropped almost 800 points<BR/><I>“See there, the bailout didn’t do any good!”</I><BR/>(in spite of Bush’s warning that this will take a while).<BR/><BR/>But, at the close, it was down about 370 points.<BR/><BR/>Forget percentages; my shaky math seems to show it recovered a bit over half the loss.<BR/><BR/>If this is the Apocalypse, why did it recover anything at all? Why didn’t it just keep going down?<BR/><BR/>Is it remotely possible that it is adjusting to a new equilibrium, will eventually stabilize there, and the world may still be here for a while yet?<BR/><BR/>Just wondering :-)Anonymousnoreply@blogger.com