Dow Continues To Drop!

Looks like it is only getting worse and now Brazil is starting a trade war with China by slapping 30% tariff on imports from them. Greece is ready to default.
The House Dems & TEA Party people are both threatening to shut down the goverment.

Is the Great Depression II on the way? Will someday people look with fondness on the early years of Obama's presidency when unemployment was only 9%?

Somebody tell Helicopter Ben Bernake to turn on the printing presses!

I am worried things are going to get worse soon. And I need a job too.

I look with fondness at $2 a gallon gas.

Honestly- I have no idea how the DOW got as high as it was. this economy was never worth 11,000 dow - more like 8500 is the reality here.

The market appears to be moving on the news of the day, instead of reality. The stock market is a propped up house of cards supported by the FEDS printing press.

Reality is still a long way off.

The market was filled with way too much hope that we would recover eventually...we may never.

There is some truth in that CB.....I think we are looking at a new normal, and a more realistic view of our economy within the world economy. I do, however, think much of the volatility in the market has little to do with the value (or lack of) value in the companies and the bond market and more to do with emotional responses to the news of the day.

It appears to be broad based panic selling, even gold is down, everything. I agree Dow 11000 was too high for along time, it has been the FED policy to make money so cheap to force people into stocks. The Fed has too much power and does too much tinkering.

Others are saying valuations are higher than they look in todays PE ratios because earnings forecasts will be coming down 30%

Just looked at the closing number....

Ouch!

I know that this sounds simplistic but really the issue is that interest rates are so low there is no where to go. It was Greenspan's safety net for so long that if we raise it stocks go down and when Greenspan would get into trouble he would lower interest rates and that would raise stock prices. Interest is way too low and they cannot lower it to make things easier and they cannot raise them because it will make things worse. They took away their safety net just like when people don't save.

I wonder if interest rates started to rise if more people would buy homes etc? Right now if you are looking to buy a house, you can afford to wait and hope housing prices continue to fall as more foreclosures are closed. But if you knew interest rates would be 7% next year, you might buy now.