Is Today Black Tuesday for the US Markets?If you have been watching the global markets Monday and Tuesday, you know that there is a genuine crash happening.
It follows about three weeks of decline starting with the beginning of the year.
As you can see in a number of news sources some key Asian stocks dropped as much as 15%. It has been reported that large numbers of bank customers in US, UK and Japan have already started withdrawing money from their accounts.
I take this part of the crash as essentially a run on the banks for hefty withdrawals. Now instead of being bank accounts, we are talking brokerage accounts. The same kind of thing that caused the 1929 crash to be more severe. This may have less of an impact on the U.S. markets, as we have a far more sound banking system. Obviously our mortgage system needs a redo, and that is more obviously going to be front and center in Washington now that we see the world-wide results.
I think today is likely to bottom out quickly, and I believe it will not be nearly as severe in the U.S. as many doomsday people are trying to say.
Look at this:
http://en.wikipedia.org/wiki/Panic_of_2008
The moron users of Wikipedia are already trying to make this into a great event to document in their live history book.
WE WERE LUCKY:
The election news, followed by the MLK holiday have essentially suppressed this news from just about everyone. Nobody is really panicked yet in the United States. Their eyes has been off the ball. This means most of the 401K mutual fund holders are not yet putting in the sell orders.
PREDICTION:
We will end the day down less than 300 more points. This will be fun to watch today. I am fortunately mostly on the sidelines personally in my holdings.
VALUE?
Of course if you pick the bottom, you can make a killing. I am going to be watching some of my favorites today. Good luck!
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