Comment

Sunset Palm

242
lawhawk2/05/2010 6:54:10 am PST

re: #219 Decatur Deb

It’s hovering at 10k. 10k is a psychological number and has no specific meaning. That we’ve lost a couple of percent off the market in the past week isn’t good news, but could be part of a regular market correction after a pretty significant runup.

The big problem could be that the underlying fundamentals in the markets aren’t as strong as we think they are - and instability with foreign governments worrying about defaults (particularly in several European countries). If they default, they can’t pay their bills - and that might lead to further downgrades on bond ratings here and abroad. If the ratings are degraded in the US, the cost goes up significantly in interest - making the debt a whole lot more expensive.