Patterico's Pontifications


Dow Plunges 1175 Points

Filed under: General — Patterico @ 7:15 pm

It’s been worse percentage-wise, but it’s the biggest point drop in history.

And the futures are not looking bright:

Of course, the Dow is a phony bellwether, but this is real trouble. Of course, some of us had been warning for a while that we were in a bubble. Does that mean I sold everything before today’s crash? Nope. Bubbles are easy to see but hard to time.

And we could recover tomorrow. I doubt it, but you never know.

I think Trump will stop boasting about the stock market for a little while, at least.

[Cross-posted at The Jury Talks Back.]

16 Responses to “Dow Plunges 1175 Points”

  1. People getting out while the gittin’s good?

    nk (dbc370)

  2. So what happened on August 11, 2011?

    narciso (d1f714)

  3. Many reasons:

    * There’s a lot of profits in the market, and a lot of folks wanted to wait until the new tax laws took effect to take them. Also, January is a long way from April 15, 2019

    * Money went into the markets in the Obama era because there was no other good place to put it. Once real interest rates climb to 4 or 5%, there will be alternatives. But not this year, or next.

    * People with stocks on margin during this run-up are getting calls, and even if they aren’t they’re getting nervous and their margin interest rate is going up.

    My prediction: some stocks will fall like rocks, but companies with good income and prospects will do just fine. Boeing can only fall so far.

    Kevin M (752a26)

  4. Where as general electric makes Thomas Edison cry.

    narciso (d1f714)

  5. Having seen a REAL crash — 509 points when the Dow was at 2200 (equivalent to a 6000 point one-day drop now), this doesn’t bother me much. Then again, I’m out of the market….

    Kevin M (752a26)

  6. Why would energy stocks be particularly down?

    narciso (d1f714)

  7. Anywhere else in the economy when prices are marked down we call it a sale.

    crazy (d99a88)

  8. 6

    Why would energy stocks be particularly down?

    They weren’t. VOO (Vanguard’s S&P 500 ETF) was off 4.10%, VDE (Vanguard’s energy ETF) was off 4.10%.

    James B. Shearer (c4f4d7)

  9. Reaganomics.

    DCSCA (797bc0)

  10. sickly and anemic pension funds like the ones in Illinois and California are what gets hardest hit by this sort of downturn

    and Jesus said to the gathered crowd who among you will sloppeth the pension piggies if there’s no slop in the buckit

    if there’s no slop in all the land?


    poor piggies

    happyfeet (28a91b)

  11. Why would energy stocks be particularly down?

    a lot of times that’s currency-related

    happyfeet (28a91b)

  12. did we know that Bangalore’s officially called Bengaluru now?

    nobody tells me anything i just click and bam there’s new information to process and absorb and I tell you what it’s getting a little tiresome

    happyfeet (28a91b)

  13. The current recovery has been tepid in many respects, but it is already one of the longest. If it lasts until June 2019, it will tie the all-time record of exactly ten years (1991 – 2001).

    The point being: recoveries don’t last forever.

    Dave (445e97)

  14. This thread is Burnin down the House..

    Ben burn (b3d5ab)

  15. The Friday drop on the Dow was 666 points.

    manufactured, false, Soros

    papertiger (c8116c)

  16. The donor class {Biddel} doesn’t want President Trump {Jackson} messing with their private police force {FBI}.

    Remember the Martha Stewart case? The ImClone stock trading case. What was she sentenced for? Not insider trading, because in the case of the cancer drug Erbitux, the real criminals were the FDA, delaying the approval of the German based drug company’s product until an American could develop a substitute.
    Naw what she was convicted of was, misremembering something said to a scribbled n a notebook FBI agent.

    THe point being the FBI is the gestapo of securities trading. Democrats have been milking securities for years. Look at Senator DIFI {or her husband’s bank account more precisely}.

    The Democrats don’t want that being messed with, because if the FBI started operating under the color of law…

    Well. Katie bar the door.

    papertiger (c8116c)

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