Black Monday (1987) Oct. 19, Dow down 22%

[ben_meyers]

Learn a little history here people!

http://en.wikipedia.org/wiki/Black_Monday_(1987)

[scheming daemons]

1. This week will see a bigger tumble..... 6% per day for 5 days is not going to feel better

[HereSince1628]

11. But it will leave the markets open, and jumping ship will be possible

Lordy. Today is a panic. How can you make a correct move in the midst of chaos?

[endthewar]

14. That crazy financial guy on CNBC claimed that the system is rigged

Talked about how it's a shame that some of these stocks can be traded right now. Somebody knows something, and trust me, they're talking to somebody else. There's some serious insider trading going on right now.

[MadrasT]

2. Hell, we're only down 6% now...

thanks for a little perspective.

[bunnies]

3. Well I gues that makes it all ok then.

Move along, people. Move along.

[mohc]

4. Please let me know at what percentage I am allowed to start being concerned

Thanks.

[Kurt_and_Hunter]

5. This is much more serious than 1987

That was a drop from an artificial peak, and was driven by program trading which people knew a lot less about back then.

Today is about a move into a dire economic circumstance, not just a runaway short term correction.

[AllieB]

12. Exactly. The other sectors of the economy aren't as robust as 1987.

So who knows where the bottom will be.

[yurbud]

6. I freaked out that day. Fortunately, America's apathy and ignorance protected us that day

You can't panic if you don't know it happened.

[AllieB]

7. They close trading if the Dow drops more than 1200 points.

So there's no way it can drop 22% since it starts off at over 11000.

[kerry-is-my-prez]

8. But the market doesn't have the ability to bounce back up like it did during the Clinton years.

The economy was a lot healthier then.

[Barack_America]

9. The only reason we're not there yet is people are so damned stunned and confused.

They expected the bill to pass, it didn't and they don't know what that means now.

Once it starts to sink in that this has completely broken down, stocks will plummet more than 22%.

[demnan]

10. I always knew Monday was a bitch

I just didn't know it was that much of a bitch!

[wishlist]

13. Jim Cramer on CNBC said he thinks it will drop another 2500 points soon

Now that some of the big investment banks are no longer in a position to manipulate the markets up, larger drops could occur until a bailout goes through.

I had fears a few weeks before the '87 drop and pulled all my money out of stocks before that big drop and never got back in. Every time I have seriously considered getting back in, thinking the market was low and may be a good opportunity, something dramatic happens making me glad I did not get back in, instead settling for guaranteed safe investments.