A roller coaster ride would be a very clear analogy for this weeks trading. Investors are panicked and they are jumping out of the market like lemmings. The problem is they are not being rational. The irrational exuberance that Greenspan once warned of is now expressing itself in an opposite direction.
The Dow dropping below 8000 for a few minutes today may have given people a sobering vision. The problem with the market is that it seems to be governed more by fear and emotion than sound decision. Yes, GM doesn't look real good right now, but that could change, or perhaps there will be no more major car makers in America. Both scenarios could happen and it would be based on fear not logic. A bigger crash is possible but only as a self-fullfilling prophecy. It's time someone quelled the panick and started talking some sense into the freightened traders before it is too late.
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