This market just feels like it is going to have a meltdown similiar to what we saw in '87. I don't know about anyone else, but I keep trying to catch falling knives.
fwiw, did anyone notice that as Geo Bush spoke about the economy and corporate "corruption" this morning, the Dow lost big points and continued to accelerate downward? In the time it took to write this, the Dow dropped about 45 pts. Jim
As soon as we get everyone convinced that we are going to Zero, then we will have "the Day of the Lundy" rally. We have to get everyone on the same side of the Titanic before we can rally much... Don
Has anyone ever watched the spoo's tick chart during a presidential speech. I could swear that there was a major correlation between the chart and what the prez was saying...and I'm not talking about a big lag time either...just a matter of under 30 secs or so.
I think 87 was like a 30% drop in the dow in one day, so that would be over 2,000 pts in one day! The problem with that is the fear it would cause in the general public, which would then kill the economy for a long time. We would all be talking about the Depre........I won't say it.
All this negative sentiment doesn't bode well at all for Bush. His approval rating is plumetting even faster than the Dow. I doubt the market or economy will turn in time to help his reelection. And if he doesnt make a move against Iraq before reelection, that will be seen as rhetoric too. And...not to mention Harken, Haliburton, and the fact they have done little to punish those already guilty IMO of corporate crimes, ie. Skilling, Ebbers, etc. So we crack down now, fine, it helps the future. But much of the damage has been done. So what of it? Those crooked CEOs are allowed to lie in front of the Senate and adjourn to their country clubs? Somethings amiss here...