“This is the greatest orgy of speculation we’ve ever had in our U.S. Stock market.”
–Vanguard Group founder John Bogle, from an interview with CNNMoney. On Tuesday, following Treasury Secretary Tim Geithner’s introduction of the Financial Stability Plan, the Dow dropped 382 points, or 4.6%, closing at its lowest level since Nov. 20. “We used to go for years with no 3% changes in the market,” Bogle noted. “We’ve had 25 3% ups and downs in the last year.”
Today was another down day for the markets. The Dow slid 82 points, or 1%. There are no simple answers to this mess, notes Bogle. “We earned our way into it and we’re going to have to earn our way out of it.” –Jessica Shambora