As we posted on Sunday, we figured that Monday would be interesting to see how investors would react to the fall of Lehman Bros. The market ended down over 500 points, which is the largest point drop since the market re-opened after 9/11. And today's drop happened in spite of oil falling below $95 per barrel....which is really good news for the economy. Who knows, it could have been far worse had oil not been dropping. Tomorrow (Tuesday) will be another day to watch. If investors are still scared, there could be more of a sell off. On the flip side, there could be a lot of buyers if they percieve that we have reached the bottom, and if that happens the market could bounce to the postive. I have my personal doubts since all eyes are now being focused on AIG. AIG is a huge insurance company and if people start to question the solvency of huge insurers...it's possible that Wall Street's pain (and everyone with 401(k)s, IRA's, stocks and mutual funds) could just keep getting worse.
Here is an article from the Miami Herald that describes today's events; http://www.miamiherald.com/news/politics/AP/story/687847.html
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