That would be a big number for a year’s worth of losses, but it’s gigantic for one week. The market got its wish with the $700 billion dollar government rescue package but that was not even enough to stop the endless selling pressure.
The real kicker in this market is housing prices which continue to fall on a monthly basis. In addition to lower home prices the unemployment rates are rising along with credit card and mortgage delinquencies. I think both will continue to get worse and companies start laying off large numbers of employees to help reduce overhead cost.
The market will continue to stay weak and we still have not seen the ultimate lows in 2008. The good news is I expect we will put in the low for the year in the next 2-6 weeks and that will be followed by a powerful rally heading into 2009.
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