Saturday, October 11, 2008

The Economy

Finally couldn't resist making a comment about the plunging economy. Yesterday the Wall Street Journal published graphs showing the stock market during the Great Depression, the recessionary 1970's and the most recent period of 2000 to present. In the first two, unemployment was a major factor that brought the market down. That hasn't been the case in the present period but don't give up hope.

Unemployment is sure to rise drastically and when the stats are announced will likely trigger another Wall Street sell off by frenetic investors. I doubt the sell off will be huge as the market will have pretty much bottomed out by then (I suspect around 7000 on the Dow). Another buying opportunity for the daring or reckless.

As to the Dow low point, I should start a pool. Who wants 8000?

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