Pull up a chart of 87 and the month leading up to the crash, note any similarities? Just putting it out there because I am getting a very bad feeling here. GS selling off.
It is possible, the pattern that we have seen the last few weeks is very similar to what occured prior to black Monday. Damn look at GS go! If the leh auction is anything to go by the forced selling may noit be over as I had expected/hoped. Things really are as bad as banks have been worried about and possibly worse. There will have to be some huge and radical solution (and another round of gloabl rate cuts isn't going to do anything at this point because it doesn't address the root problem).
Now, there is some useful information. Depending on your time horizon, I"d tell 401k people to sell any rally coming before Christmas. After the first, when half the country is thrust in darkness, miserable cold, when the unemployed get a chance to stew about their fate, and hate their 'leaders', you 'll get another shot at it. Watch divorce rates, suicides, obesity levels, dui arrests......... Amazing times.
Need a major flush, 10% more, need full on panic, do not need the government to "rescue" anything at this point. Once we get the "END OF THE WORLD" call....bottom will be in. Might be a few weeks.
That would be just about 50% down from the highs. And that would be the bear market low. Bad news would continue, but it would be discounted.