Black October

Historically we've had Black Thursday, Black Monday, Black Tuesday... How about Black October? This slow ripping off of the bandaid we've endured since the beginning of the month is definitely worthy of this moniker.

Depending on how things end up next Friday, this could be a 20%, 25%, 30% decline in a single month. If we have a final plunge on Friday, we'll have to call it Ghoulish October.

The current record for worst months on the Dow are:
Sep 1931 -30.70%
Apr 1932 -23.68%
Mar 1938 -23.67%
Oct 1987 -23.22%

As of right now this month is the fifth worst at -22.78%.

A noted economist, Nouriel Roubini who I may have mentioned in previous posts was one of the first ones to shout warnings about this disaster we're in. He started in 2006 and people thought he was a crackpot. Of course as it turned out he has been dead on right. He laid out exactly what would happen and in what order. Check out this article from February, it's pretty eerie in how accurate he was.

http://www.cnn.com/2008/US/02/28/beck.commentary/index.html

Well he of course has been making his rounds on the stock channels and was on Bloomberg yesterday I believe where he said we still have up to another 40% decline from here (that would be Dow 5000). He also thinks things could get bad enough to have to shut the markets down for a week or two to try to stop a true panic scare. Let's hope this doesn't happen because that would be disasterous. He maintains a website called the RGE Monitor. Some of the information is only available if you're a paid member. I don't pay for anything, I'm cheap, but I do read the free stuff on his site.

I also recommend a guy named Gary Kaltbaum, he has a pay service also, but he does post once or twice a week for free. http://www.garyk.com/

If you're into learning, I highly recommend http://www.minyanville.com/

And here is a very interesting article. It's lengthy but very worth reading.
http://www.minyanville.com/articles/WMT-TGT-bailout-RAD-recession-deflation/index/a/19691