The limbo game continues. Most argue that the ultimate bottom is about 7500 (the low during the last recession/bear market). If it goes below that, the bottom is 0. I'm old enough to remember 4000 but not anything below that.
We're starting to see some scary echoes of the 1930s. The Republicans are stealthy and not-so-stealthy blaming minorities (black and Hispanics) for this crisis. They are scapegoating them by saying that minority quotas on mortgage lending at Fannie and Freddie (backed by Democrats) led to the subprime crisis. I hope most people understand that this is only about 5% of the whole cause, but I could explain in much greater detail.
In any case, without widespread, definitive, and radical action this weekend by all of the world's major economies, we are looking at what may be the end of capitalism. Not to be dramatic or anything.
Although my dire predictions are usually one day off, tomorrow could very well be Black Friday. (At this point, though, it's going to be the Black Week of October regardless. It may be more accurate to call it the Blood Red Week; we're on pace for a 20% drop.) But I'm sure Bernanke and Paulson know this about tomorrow as well, so I'm sure they will do something drastic in the morning. Unfortunately, they have to compete with Bush. During his pronouncements, the Dow usually loses 100-200 points.
Remember that TED Spread (of which I previously spoke): It's at 4.23.
And, right now, the Nikkei is currently down 11%.
