This is being posted at 5:30 AM ET (10:30 AM GMT) Tuesday Morning, 1/22/08. How have the world financial markets reacted to the United States’ proposed economic stimulus plan? Depending on who you listen to, it’s either “too little, too late”, or a case of “no good deed goes unpunished”.
The supercomputers here at RoutingByRumor (RBR) have been humming all night, crunching the numbers and running the simulations. Our analysts have been burning the midnight oil. We have even dusted off our Ouija boards and polished our slide rules.
Overnight, world markets have been dropping between 5% and 8%, suffering their largest one-day losses in 10 to 20 years. Dow Jones and S&P futures are down over 5%. The silver lining here is that oil is down to below $88.00 a barrel. Here’s what our RBR pundits are telling us…
We believe that the U.S. stock markets will suffer historic losses when they open later today. We predict that the Dow Jones average will drop between 500 and 1,000 points (or between 4% and 8%) by the close of trading. We expect a 200 point drop in the first hour of trading. If you want to pin us down to a number, we predict a loss of 710 points, or nearly 6% on the Dow today.
Hang on !
UPDATE: How did our predictions fare? Check out our post for Wednesday, 1/23/2008.