Michael's Blog

Market Freefall

I originally posted about this back in October when this whole crisis started but as with all things econ there is a time lag between cause and effect. I have stated many times that I expect the DJIA to return to around the 5000 level and now many economists expect it to go even lower than that.

I'm not trying to spread gloom and no matter what happens I think we'll survive, humanity has made it through far worse times. One things for sure, the days of zero down, interest only loans are OVER.

Here's the latest graph I've made reflecting recent closing values.