Stocks Market Down Many Days in a Row Now...

We were at 9000 Dow not too long ago.... Now at around 7,200 today... When will the domino's stop falling?

Stocks Tanking Again - Market Down Many Days in a Row

While eyes have been locked on the steep descent of Citigroup and Bank of America, financial stocks are no longer the main culprits in pulling the stock market toward 11-year lows.

Instead, manufacturers and even makers of basic consumer goods are now the biggest drags, a shift that has some investors worried.

Although the current bear market began as a housing and banking crisis, the damage has spread.
A more diverse group is leading the declines today. A look at the Dow Jones Industrial Average this year shows declines in stocks like 3M and Procter & Gamble have had more of an impact than the drop in Citigroup or American Express.

"What started as a subprime mortgage crisis became a U.S. credit crisis, then a U.S. recession, and now we are in a full-fledged, globally synchronous recession of historic proportions," says Leo Grohowski, chief investment officer BNY Mellon Wealth Management in New York. "There are very few areas that have been insulated from the decline in earnings and in stock-price performance."

During the bear market's first 13 months, beginning in October 2007, financial companies led the declines in both the Dow Jones Industrial Average and the Standard & Poor's 500-stock index. Of the six largest contributors to the drop in the Dow, three were financial stocks, even though there were just five financials among the 30 Dow companies.

The three offenders were American International Group (since removed from the Dow), AmEx and Citigroup. The other three leading losers were two industrial companies, Boeing and Caterpillar, plus International Business Machines.
Normally, makers of consumer basics such as cleaning products and diapers are resistant to bear markets because their sales are relatively stable. This time, their shares are falling regardless. In many ways, this bear market is worse than the one led by technology stocks from 2000 through 2002, which itself was unusually severe.

The pervasiveness of the current bear market has analysts worried. During the 2000-2002 bear market, the undying willingness of American consumers to keep spending was one of the few bright spots, ultimately helping turn stocks around. This time, the U.S.'s financial troubles have engulfed consumers as well, and that bodes ill.

Article on "Is it Fair to Call This a Great Depression"?

Article on "Is it Fair to Call This a Great Depression"?

Sure - it isn't as bad as 1929 yet. But people weren't as well off in general then - even when times were good.

But relative to what people are "used to" -
the foreclosure crisis - the banking crisis - stock market declines -- more and more unemployed - I'd wager to say that this can be called a Great Depression - and if you don't think so yet -- you may change your mind this year.

By the way - this domain is for sale to the highest bidder - with a reserve price of $100,000 :-)