[pwatson]

The stock market has been waiting for a reason to go down all year. We have been in a boom ever sense the end of the 9-11 slide. The housing market was just a reason to panic. This is entirely a panic and as such will happen because the markets always panic sooner or later. Everyone will put off buying a new house, condo sales are down 40%. Next, companies will become more cautious delaying or reducing expansion and hiring which in turn will cause factory orders to drop which will in turn cause consumers to delay spending and the layoffs will happen causing a recession. The same thing happened in 2001 after the 2000 NASDAQ boom. And the same thing happened in 1993 and in 1987. And so it goes. Hang on this will get worse before it gets better.

[Moonman62]

This is entirely a panic and as such will happen because the markets always panic sooner or later.

It's funny how the panics always occur after the Fed has jacked up interest rates, usually inverting the yield curve.