World markets fell again today, increasing the likelihood that adverse consequences could result if the drop in equity values continues.Nervous investors are worried about Greek debt, the Euro, and other things that change regularly, keeping the U.S. economic recovery in jeopardy but increasing news turnover and ratings significantly.
If credit markets continue to tighten, it could result in conditions that may negatively affect the U.S. market, leading to a double-dip recession. Despite this, moderate economic growth is predicted unless something else occurs.
In a statement released today, T.V. personality and part-time economist “Dr. Sinister” said that the S&P 500 could fall to as low as 700 to 500, or could go “even lower.” He did not elaborate on how these numbers were chosen, but his expression appeared very serious so it must be true.
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“…if there were to be a significant tightening of financial conditions and credit availability gets tighter in a big way, there is risk the economy could fall back into recession...”
CNBC, 24 May 2010, http://www.cnbc.com/id/37324540
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"Nearly everyone interested in common stocks wants to be told by someone else what he thinks the market is going to do. The demand being there, it must be supplied."
Benjamin Graham, The Intelligent Investor
