Stock Market

Really bad day in the stock market today.  Sixth worst day in DJIA history.  Bank of America was down over 20%.  Krugman links to a post that suggests today’s drop may be the result of one or a few large hedge funds getting margin calls.  Fun!  But who knows.

The Dow is down from 12,700 on July 21 to 10,800 where it closed today.  That’s -15% in 18 days (including 5.6% today)!  And we did what we had to do on the debt ceiling thing (sort of).

Not really sure why today was the day.  The S&P downgrade perhaps, but that didn’t really signal any new information.  Europe perhaps, although the ECB intervened on behalf of Italy and Spain on Sunday.  Perhaps the latter is a signal that things are worse than expected.

Good thing I have most of my wealth tied up in security deposits and magic beans.

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About brianbergfeld
I am an economics PhD student at Washington University in St. Louis.

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