Monday, September 15, 2008

500 Points

I think the Dow will lose 500 points today. It is going to be a high volume fire-sale.

But then I think we're about at the bottom. Bear Stearns and Lehman Bros gone, Merrill Lynch now to be owned by Bank America.

It looks like the market is taking care of overcapacity in the investment banking sector. It is ugly, it is painful, and it is both exacerbated by and a prime cause of the housing crisis.
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6 comments:

  1. Doc MilnamoSeptember 15, 2008

    How much will the various exchanges let the market drop (or go up for the right reason)before they let the "circuit breakers" kick in?

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  2. The Conservative WahooSeptember 15, 2008

    I think the Dow will intervene at 5%

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  3. Doc MilnamoSeptember 15, 2008

    OK, how did you make that happen? ;-)

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  4. SamShapiroSeptember 15, 2008

    Seriously, it was hovering around -280 every time I looked.

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  5. MudgeSeptember 15, 2008

    Prescient. Any good tips for tomorrow?

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  6. The Conservative WahooSeptember 16, 2008

    Sorry gang...no real sense of how things might go today; though I do think all 504 points lost yesterday will be back in the market by 1 November.

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