Another emphatic down day is in progress with the Dow just breaking 9000 in a most convincing fashion. We are very close to turning the first decade in this Century into a lost decade for stock prices. The Dow was at 7672 in April 1997. Many of the financial stocks that are still standing have already returned to mid-1990s prices. Morgan Stanley is falling 20% today to 13.5 as of 2 p.m., returning to January 1996 levels.
Ford is just above 2 and the prices of it bonds are at prices indicating a very good likelihood of a default. The same is true for GM.
3 month LIBOR is jumping today to 4.75% as of a few minutes ago.
Who is going to supply all of the funds the worlds' governments are injecting into the financial system?
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