NEW YORK (AP) — Stocks are falling sharply on Wall Street in early trading as fears spread that the coronavirus is causing a global recession.
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The Dow Jones industrials fell 1,100 points, or 5%, in the first few minutes of trading Wednesday. European markets are also down a similar amount and the price of crude oil dropped 10% to its lowest level in 17 years as traders anticipate a sharp pullback in demand for energy.
The sharp market swings came despite promises from President Donald Trump to prop up the U.S. economy with a package worth as much as $1 trillion.
What would happen if the DOW goes down to zero? What would that mean? What mechanism would kick in? How will it effect the non investor?
No worries! The 15 CoronaVirus victims are all recovering and are now selling stocks at big discounts. Bobble-head Pence continues to shake his head in robotic approval at every one of his Fuhrer’s bon mots. Toilet paper is on sale in Yuddie’s Mart on 13th Avenue. All is well.
It won’t go down to zero. That’s impossible. There is always inherent intrinsic value. At a certain point there is an equilibrium. Plus, the govt won’t allow companies too big to fail, to actually fail.
Not likely to go to 0. Going to 8-9000 or even 5 Thousand is much more likely. It was 7000 in the middle of the BushCrash it could get there in this MAGAcrash. We are down 10.000 points in 3 weeks . Another 10 000 in the Next few months is likely.
So basically, any way you look at it, the taxpayers will get screwed as usual. The arrogant elitist CEO’s will not suffer a single penny loss from their own pocket. “We the people” are always the loser.
Btw, while all this craziness is taking place, the Port Authority raised the rates on all tolls. We are truly a dumb guillibe nation.