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IPFS News Link • Economy - Economics USA

Black Monday...

• LewRockwell

The purpose of this update is to consider what is likely to happen over the next few days and especially tomorrow, Monday.

When a market tips into a crash on a Friday, what typically happens is that the thousands or even millions of investors who believed the mainstream media and didn't see it coming spend the weekend "stewing" over their investments – and many of them decide to bail out come Monday. Thus we may see a massive down day tomorrow, possibly the worst of the crash phase, and it would not be that surprising to see the Dow Jones Industrials drop by 800 – 1000 points in one day, perhaps even more. Remember that the Dow Jones Industrials "only" dropped 3% on Friday, which is no big deal by the standards of past crashes. What we need to see before this is over is a headline grabbing day where the market collapse is THE big story, and is not relegated to 2nd place by three fellows tackling a terrorist on a French train, as was the case with BBC World News on Friday – Saturday. It will take something like a 800 – 1000 points down day to achieve this which will probably be the worst crash day, and while we might see one or two more down days immediately afterwards, we would soon be at a high volume selling climax marking exhaustion of the panic phase.


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