[Night Hides Not]

Well, the market mavens have been pounding the drums for a blowoff event, to set the stage for the next rally. This may be the trigger that they were looking for.

Then the next question is: how low do we go before the rebound does start? My no-longer-educated guess is NASDAQ 800 and DOW 6300, i.e. another 40% downdraft on NASDAQ, and 30% on the DOW.

Here's to hoping the SEC and the Bush Justice Dept goes after the lawbreakers. Sending these corporate criminals to hard time is the medicine needed to cure this cancer.

This is a result when ethics no longer matters, and 'it's just about sex' in the Oval Office.

[DJ88]

I believe that the Justice Department has already begun an investigation into WorldCom. Let's hope that those like Bernie Ebbers, who resigned a couple of months ago, and the CFO that was fired yesterday, spend some time in jail.

[Frapster]

My no-longer-educated guess is NASDAQ 800 and DOW 6300, i.e. another 40% downdraft on NASDAQ, and 30% on the DOW.

I seriously cannot imagine that this would occur... not unless there really are "nine other Enrons/WorldComs" out there. But 6,300 won't be reached on Enron/WorldCom alone... will it? *fidgets nervously*

[cajungirl]

I hate to be a pollyanna with so much breast beating but I think the market will drop and start back up. I think the dishonesty is limited to a few high flyers and is not pervasive. The world political situation weighs more heavily in my mind. Soon as we invade Iraq or get Osama, the market will go right back into bull action. Or maybe I am just trying not to deal with the heavy losses we have taken.

[anniegetyourgun]

I think your estimates are probably pretty good, nhn. And DJ is right in his/her post - DOJ has already announced investigation.