[Freedom_Is_Not_Free]

Pleases note where the DOW plunged to in 2002/2003. "Likely" is one of those words. Of course it doesn't seem "likely". But it is very possible and the precedent is very real. It just may be "likely" in light of the severe liquidity crisis during the current banking massacre. I would say, "not likely and not unlikely. Very possible."

[rb22982]

Big difference in 2001/02 and part of 03 though is that the Dow’s PE ratio started at around 100 to 1 and the S&P’s PE Ratio was 80 to 1 and was just returning to normal range of 15-20. The S&P’s PE ratio right now is like 14-15x 2008 earnings which is below the 40 year average. If the Dow drops to 8k and the S&P follows suit, even if earnings stay flat, the PE ratio of the S&P would be very, very low by historical norms with dividend yields above US treasuries. That is why it’s not likely to happen.