Stucks Plunge

Wow, Greenspan predicts a Recession on Monday, and on Tuesday the Dow obediently drops over 400 points. Talk about a well-trained pet!

U.S. stocks plunged to their worst one-day performance since 2001 on Tuesday, with the Dow Jones Industrial Average losing 200 points in one minute around 3 p.m. before recovering some ground by the close, after a sell-off in China fueled concerns about growth. Concerns that tighter credit conditions in China and Japan might dampen global growth first sent Shanghai sliding 9% overnight before the sell-off spread to other markets. The Dow Jones Industrial Average fell 415 points, or 3.3%, to close at 12,216, its worst one-day drop since September 2001.

More proof that the economy is more about psychology than reality. Nothing has actually happened yet. The economy fell on fears over what may happen. Sigh. Why do economists claim it is a science?