John Pseudonym

Investors React to the Markets Like Deer in Headlights

"especially if the world's growth areas start looking away from Wall St.’s headlights and focus on their own better short term prospects and potential."

That's why everything is tanking! People are focusing on short term prospects/potential and they don't see any.

The collapse is mostly rational; anyone with a brain can look out and see the world economy grinding to a halt. How is that good for future profits?

The real headlight induced panic is yet to come. That will be the average Joe yanking his 401K money en mass. January will be interesting at that is when a lot of people are allowed to change their 401k allocations.

If the 401k heard heads for the door in January, that will sink the DOW like never before. Bond yields will tank as the money rushes in and people head for "safety".

At that point you will have a mega bubble in the bond/treasury market.

When that bubble breaks interest rates will explode and the US's ability to pay it's debt will come into question....

Currency/bond crisis dead ahead as the Democrats are steering us directly into the berg.