The market is telling officialdom, and specifically Bernanke, that like in the lead up to the 1929 stock market crash (which was 90%), the true health of the economy is not being interpreted correctly, and that official policy is not sufficiently accommodative. As alluded to during the course of the week, this misread and mishandling of the situation has a great deal to do with the stubborn resilience of
The stock market will not go all the way back to 9,00 but maybe it should. However I do purely as a common sensed observer of what Bush has been doing and the nonsensical activity of the stock market since Bush has been at the helm fully expect to see the stock market settle around Dow 10,000 in the not too distant future. Certainly shortly after a Democrat is elected if we even have an election as I fully expect Bush to cancel elections and declare martial order.
If that is the case the Dow will definitely go below 10,000 if not lower. Right now down 179 it is at 12692 give or take.