GVTucker, Re: "all of those numbers reflect a valuation that is well within historical parameters."
Show me where in history that the Nasdaq has taken an 80% drop, the Dow a 40% drop, and the S&P a 50% drop from their record numbers over a two year period. Valuations be damned, look at how frightened the market was last year when those stock indexes fell 70%, 30%, and 35%, and that was due to terrorists blowing up buildings on U.S. soil (not to mention destroying part of the "inpenitrable" Pentagon). Now you're trying to tell me that things could get worse, just because of historical valuations in the 70's and 80's, like those valuations could return out of the blue? And you think that the economy could survive that kind of a fall, should it occur? Well, no offense, since I really respect your posts, but I don't think there is any way at all that things could get that bad (barring some major catastrophe, natural disaster, or terrorist act).
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