This debate will be a small story tomorrow. (Remembering the crash of 1987)

[Kurt_and_Hunter]

Before the Monday crash of 1987, the Dow closed down big on Friday. Then a wave of selling started moving around the globe early Monday morning.

When the UK market opened, Fidelity started dumping US shares that are co-traded in London to raise enough cash for mutual fund redemptions.

By the time the US markets opened, the pent-up selling pressure accumulated over the weekend was like a levee breaking.


I am not saying tomorrow will be like 1987, or anything like it. But it will probably be bad enough that the stock market, not the campaign, will lead the news.

[Beausoir]

1. I certainly hope not. I am jittery, none the less.

[The_Casual_Observer]

2. It'll either be the biggest one day loss in history

or it won't.

[Kurt_and_Hunter]

3. Spoken like an economist!

[The_Casual_Observer]

4. Profound, huh?

[Dudley_DUright]

5. Don't forget that little known third option,

a tie for the record.

:hide:

[Renew Deal]

6. Dow futures down almost 500 pts. tonight

http://www.bloomberg.com/markets/stocks/futures.html

[Unsane]

7. You hope.

[CyberPieHole]

8. More than likely. The U.S. economy is headed for a "correction"...

the artificial real estate "boom" fed by Bush's tampering with interest rates has come home to roost. WaMu, Citi Bank and Countrywide have lost billions...over-priced properties are going unsold and people are losing their houses...some of them due to their greed and their desire to buy up SUVs and giant LCD teevees...tomorrow is a day to watch on the ticker...we shall see how much it drops.

Whoever wins the nomination will have a serious task to bring the country back on track.

[Tellurian]

11. What was scary..

was the Japanese markets aren't going to wait around for Bush to put another patch on the tire. They sound like they're bailing. London is fuming at Bush and Bernache's stupidity. Looks like a train wreck coming to me.

I'm sure Bush has unloaded all his USDs for Euros/Gold over the years, so he'll be fine.

[ben_meyers]

9. You can bet the cable channels will be on this

from the opening bell in the AM. All day coverage with "expert" commentary.

Market stops will be in if it gets bad enough, and in '87 the dow closed early.

To be worse than '87 the market will have to drop 2700 pts.

[bluestateguy]

10. I bet the Dow loses less than 200 points tomorrow

The market "correction" will be spread out over many days and weeks, not just one day.

[BenDavid]

12. It will lead the early morning shows but when the dow opens at

8:30 central that will be the story. If it tanks over 200 within the first 2 hours it will be the story the entire day.....

[Alcibiades]

13. They've gotten better at controlling things since then

If things get really bad, there will be an attempt to shore up the market by the big money guys, just like the good old days. and if that does not work, they will shut it down (so much for the free market).

People can be without jobs for years on end, we can export all our jobs, wages can be stagnant for high school grads for 30 years, and the MSM does not take notice. When equities decline, however, they suddenly care.

I don't think anything truly precipitous will happen. If people start calling their brokers/benefits people/whoever to get their money out of equities, then all bets are off. I don't think most people will do this in a day, however, and so the selling will be by active traders. All those people with money parked in 401(k)'s and whatnot are a bigger buffer than they used to be. That being said, stocks are probably overvalued today, given the underlying state of the economy, which Bush has run into the ground. Folks will withdraw their money sooner or later, so the value of stocks will go down, but I think it will takes months to fully pan out. How much "value" will be lost? 5% Certainly. 10%, 20%, 30%? Who knows. Where will the billionaires put their money? Gold's been mentioned, but it's risky, because it's so high. I think oil, because there will be an instability premium for the foreseeable future, given that it looks like we won't get out of Iraq for a long, long, long time.

[ursi]

14. you might be right about that