Stock Market Jitters

Here's Dan with his paintings on display at the 2007 Pines Biennial Art Show.

From Wikipedia:

A market correction is sometimes defined as a drop of at least 10%, but not
more than 20% (25% on intraday trading) over a short period of time. The
major difference between a bear market and a correction is magnitude and
duration. Bear markets last much longer, and the magnitude of loss is
greater.

So, are we in a correction? We're down about eight or nine hundred points. Somewhere around fourteen hundred points would be ten percent off the high point of the recent market, so we probably have some additional downward movement to go before we get into official correction mode territory. How low will the market go? The housing market slump and the credit crunch seem to require some action on the part of the Federal Reserve, but some analysts seem to feel that the Fed's hands are tied thanks to the Bush Administration's reckless policies, most notably, the huge tax cuts for the rich. Could part of Dubbya's legacy be a stock market crash?

Jim