How the F can a guy with ZERO credibility speak before the market opens? He is as usual a day late and a dollar short since he is totally out of touch with anyone but himself and his cronies! But I heard he is going to say that there are weapons of mass destruction located in the markets!
This is a historic time, no doubt. I feel lucky and privileged to be able to trade these moves, even if sometimes I've been bruised like many others. In 20 years time, people will ask you about the Great Crash Of 2008, and you'll be able to tell them you lived through it, traded it, and (hopefully) survived it - maybe even made a big score. There is no doubt this is a once in a generation event. Sadly once this is over, I doubt we will see another move like it for decades. There could however be one of the greatest buying opportunities of our lifetimes, possibly as early as next week, maybe in a few months, who knows. Or it could become the 2nd Great Depression and go all the way down to S&P 160 (for an 89% fall like 1929-32). I doubt that but you can't dismiss the chance entirely. All I know is that when a market like this gets going, it doesn't stop until almost everybody who is long, every bear who recently turned bullish, every bottom fisher gets burned and feels enough pain to puke out. Only the die-hard buy & holders, and those in cash or short, will be able to withstand the move and then aggressively buy at or near the lows. I'm trying my best to be one of them, difficult though it is at times. Good luck and remember to buy a copy of the papers each day because in 20 years they will be worth quite a bit, not to mention the historical & sentimental value. Fortunes will be made and lost within the next few trading sessions.
If that happens, most of us will be farming, malnutritioned, no one will get any formal education for 2-3 genarations, we will wear loin clothes like in Adam's times, and most of all . . . . you (we) wont be trading any markets . . . and no one will obviously honor your short at S&P 900s . . .
People need to get some perspective here, even at the height of the Depression unemployment was about 25%. There are plenty of countries in the world that would have loved to see 25% unemployment, at the peak of the global boom. Most of those countries suck but even Pakistan, Nigeria, Russia etc. have stock markets that you can trade. I'm sure that we will all do fine.
Speaking from experience, you don't want to live in those countries. I'd consider Russia if I was single, but not Nigeria or Pakistan.
"After the crash, the Dow Jones Industrial Average (DJIA) recovered early in 1930, only to reverse again, reaching a low point of the great bear market in 1932. The Dow did not return to pre-1929 levels until late 1954" "Anyone who bought stocks in mid-1929 and held onto them saw most of his or her adult life pass by before getting back to even" http://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929
To be accurate, absolute "support" would be 0. However, in the chat room today, I wondered aloud if the market could go below 0, and, if it did, would all longs become shorts and all shorts become longs? In such a scenario would one large loss multiplied by another large loss become a huge gain? If the indices dropped below zero would that mean publicly traded companies were paying us to own shares of our minds? It's enough to make your brain itch :eek: