"parallels between today's market and those preceding the 1987 Crash are several -- and disturbing."

[RedEarth]

Is a market crash like 1987's in the offing?


By Mark Hulbert, MarketWatch
Last Update: 7:26 PM ET Jan 21, 2008

ANNANDALE, Va. (MarketWatch) -- The parallels between today's market and those preceding the 1987 Crash are several -- and disturbing.

Then, the dollar was in a free fall against foreign currencies. Today, as well. And then, as now, the U.S. government showed no signs of being particularly concerned.

Furthermore, over the October 1987 weekend prior to what would eventually become known as Black Monday, foreign stock markets plunged. The same is happening today too. (Read full story.)

It was obvious to almost everyone, prior to the market's opening on Oct. 19, 1987, that the Dow would have a terrible day. And sure enough, it did, losing 508 points.

U.S. stock markets likewise appear poised to have just as big a point loss this time around. As this is written, on Monday afternoon, the futures contract on the Dow Jones Industrial Average ($INDU: news) is off by some 520 points. (Read full story.)

Of course, the DJIA today is at a much higher level than in 1987. So this benchmark would have to drop more than 2,700 points on Tuesday to match the percentage loss from the 1987 Crash. This contrast may prove to be only small solace to beleaguered investors, though.

http://custom.marketwatch.com/custom/myway-com/news-story.asp?guid={C34E308D-1D8F-468C-98D4-C43B017EA6F9}

[rockymountaindem]

1. Small solace?

Losing 3% as opposed to 20% is small solace? That's pretty big solace if you ask me. It's not even in the same ballpark.

Some "analyst" got paid to write that? I gotta switch fields...

[natrat]

2. ya got your plunge protection team

but they moonlight as the plunge acceleration team
what a racket

[fascisthunter]

3. Every Time Republicans Get in Power They Screw the Economy

people voting Republican are seriously confused or dumb.

[Narkos]

4. Oh, I guess everything's just fine? Silly me!