Dow goes under 10,000.
Watching CNN live and seeing the Dow break through the 10000 barrier for the which it first broke in 1999.
What does this mean? As a non practicing economist, my take is as follows. In the same way as the declining property markets reduced the asset to debt ratios of the banks, causing them to run out of money ( liquidity crisis), the fall in the Dow has the same effect.
At the same time, the dollar is rising - and this means that the foreign owned stock held by US banks is dropping in value in dollar terms - more problems.
On a positive level - the strengthening dollar takes the pressure off the oil price, and this will lead to falls at the pump.
When will the circle stop?
Update = corrected for its fall below 10k in 20004
Update 2 - now below 9800