DJIA ends the day at 8451.19 losing 1874.19 for the week, a drop of 18.15%, making this the worst weekly decline in history. This is no surprise to me since I believe, based on analysis of emperical data, that the stock market has been overpriced for the last 14 years. The Dow Jones still needs to fall another 1500 points to about 7000 before it is in equilibrium with market conditions.
Likewise the housing market has been overpriced for the last 10 years, and will need to drop another 20% to get back to their equilibrium level.
With the elections coming up, it doesn’t really matter who gets elected. We are going to see some very bad economic times ahead during the next four years, although it will certainly be worst with Barack Obama as president.
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