How Low Will It Go?

Posted By on February 20, 2009

As I write this, the Dow is hovering around 7,300. The stock market hasn’t seen a number this low since October 2002. Those 201(k)’s we joked about are fast becoming 101(k)’s. Citibank—once arguably the world’s most powerful bank—is trading in the Two-Buck Chuck range. What gives? When will this nightmare be over? If the real estate market is any indication—and it is—not any time soon. The Wall Street Journal has a telling story today called “The Hamptons Half-Price Sale.” It’s a good time to be flush with cash, because bargains are plentiful. Even so, the rich, like everyone else, are staying on the sidelines, and if that continues, so will the recession. Until President Obama stimulates the wealthy to start spending again, this economy will never get satisfactorily stimulated.

About The Author

W. Randall Jones is the author of The Richest Man in Town. Visit the About W. Randall Jones and About The Richest Man in Town pages to learn more.

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