Agreed, economy is totaly different from '87. That meltdown was 20% in one day I believe. This is 10% haircut in a month after a 20% run-up in less than a year. Dont get me wrong I have lost my ass, but I understand to some extent what is going on.
The not-so-bright mortgage lenders put the banking system in a crappy position. Countrywide going under would not be a good thing, that may basically erase the lenders off the map I suppose. 1987 Savings and Loan anyone?
Volatility is off the charts right now, you know when Goldman says they dont know how bad it is, its bad.
As far as the Fed, I really dont think the Fed will do anything, nor should they, until this trickles into the economy. When people start losing their jobs is when they need to come in and cut rates to stimulate growth. I would love a rate cut for my portfolio (whats left of it), but I dont think its the Fed's job to be the market protector.
There can be more downside, I think another shoe will drop, but there are so many good names that are now taking a beating that shouldn't be. If I had more to invest I would be looking at many of the bigger companies that have a big global exposure, GE, MSFT, CSCO, DE, HAL, X, etc. These companies are trading at very low P/E's, I am not so sure that this correction will have too much effect on the global growth, so these companies may be getting unfairly punished.
But who knows, I am not ready to call a bottom just yet.
News 
Market Data 
Discover 
