Today is turning into a real blood bath, bolstering the case that the rally is done, at least for now.
What’s causing stocks to tank? Well, who knows, really. It’s always tough to point to bad news, since obviously we had plenty of bad news the whole time during the runup. But the trio of foreclosure, consumer spending and inventory data didn’t help.
On the other hand, Larry Kudlow thinks the problem is that the FDA is going to get more aggressive about regulating Cheerios, which probably doesn’t pose systemic risk to the economy, though in his mind this is jackbooted, police-state action. That’s why stocks are selling off. Ok.
At the moment, the Dow is off nearly 200 points and both the NASDAQ and S&P 500 are off over 2%.