Posts Tagged ‘decline’

“The Dow at 6,000” (reposted)

Last September, when the Dow was at 9,200 I told several people that we’d be lucky if the Dow managed to stay above 7,000. Now, I predict we’re faced with a Dow at 6,000 or less, maybe even this month. Submitted as an Op-Ed to the Wall Street Journal, April 2, 2009.

**************************************

Originally posted – April 2, 2009

It’s been one bumpy ride for Wall Street since the beginning of 2008. It’s been volatile and unpredictable; a bit like Mr. Toad’s Wild Ride, the chaotic and exciting children’s ride at Disneyland. I would have used the E Ticket analogy, but many of the traders would not have understood the classic reference to the level of volatility.

Traders, brokerages, pundits, and analysts vacillate from grave concern to irrational exuberance in the same day, and sometimes in the span of a single hour. It becomes increasingly difficult to predict the direction of the market when the market itself is so capricious.

Some say the volatility is caused by a lack of clear direction from the government. They decry the intervention of the government in private enterprise, protesting that it is leading to socialization. But in the words of the now infamous former Senator, Phil Gramm, they’re a bunch of “Whiners.” Read the rest of this entry »

Tags: , , , ,
Posted in Economy, Markets, Op-Eds on the Economy, Predictions, Wall Street | Comments Off