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Let there be no doubt

© Matt Davies

The Dow dropped over 500 points today, its worst day in three years.



  1. I really doubt that that drop was mainly because of what was happening in the US. I look to the problems that Spain and Italy are having, let alone Ireland, Portugal, and, of course, Greece.

    The turbulence, for now, seems to me more about the problems in Europe. It’s exasperated by the manufactured debt-ceiling crisis because one of the standard moves in turbulent times–run to US Treasuries and US Dollars–isn’t looking as safe right now. But the turbulence itself is probably because the markets are unsure about whether they have already successfully “priced in” the results of the ongoing Euro-zone problems.

    Friday, August 5, 2011 at 2:25 am | Permalink
  2. Dan wrote:

    The drop was in honor of President Obama’s birthday. Are those people with pension plans jumping out the window? Brokers will no doubt get another big bonus at the end of the year.

    Friday, August 5, 2011 at 1:07 pm | Permalink