Stocks sharply lower as global crisis persists (Dow under 10,000 1st time in nearly 4 years)

MarketWatch ^ | Oct. 6, 2008 | Nick Godt

[El Laton Caliente]

I bought a Dillion XL650 with 5,000 bullets and 3,000 cases over the weekend...

BLOAT!

[21twelve]

I’m not sure what they mean when they say some banks are leveraged at 40 to 1. I’m guessing it means that for every dollar they have they borrowed another 40 to use?

And the $2 trillion in money at homes at risk was part of that original dollar. So now the banks are at risk for a total of 40 x 2 trillion? Although I seem to recall the value of credit derivitives is around 50 trillion. So - perhaps its not as bad as I think! /s

[Freedom_Is_Not_Free]

Then we are all in the same ballpark.

The worst case I’ve seen so far, unless I misunderstood his post, was from Lee Adler on www.capitalstool.com who said that 620 was possible. I’m going to have to keep tuned in to that horrendous possibility. Call that an “unsubstantiated rumor” as there is a chance I got that wrong.

I think 770 is a given, which is where the S&P bottomed in 2002. I do not expect the S&P to hold support at 960. Of course, I am a dumb engineer with no financial training or experience, so what do I know? I just read and study the writings of the people who have been on the right side of the economic predictions over the past 2-4 years.

Wow! It suddenly seems like ages ago that people here were arguing whether the bull market was over and whether we were in a bear market. I remember sadly reading all the posts from people screaming to us to buy the dips when the market was off only 10%, so convinced they were that the “correction” had to be complete. Now we are back in market crash territory, like 2000 to 2002.