For general discussion and debate. Possible talking point: Is this mini-market crash concerning you?
The Dow was down over 500 points yesterday, and just opened down almost another 200. The value of bank stocks is deteriorating before our eyes, and hours after Lehman Brothers declared bankrupcy, one of the nation's largest insurers, AIG, looks close to following suit.
How concerned are you about this? Is this all a "market event" inasmuch as what's happening in stocks is not directly reflective of what's going on in the economy? Or, is the market accurately forecasting trouble down the road that has been masked by recent economic data?
Finally, in all the anguish, it seems to have gone unnoticed that energy prices have plummeted. Oil is now approaching $90/barrel, with wholesale gasoline under $2.50/gallon, heating oil at $2.70, and natural gas at $7.40. This not only means that prices at the pump as well as your electricity and heating bills will be MUCH LOWER this winter than forecast just two months ago, but also that the Fed has MUCH MORE leeway to cut interest rates due to declining inflationary pressures.
