One year ago, in just eight days, the Dow Jones Industrial Average fell 22%. A year later, it is up 51% from its 12-year low of 6,547 points – the point when investors became convinced the financial sky really was falling. But, the actual fall of the Dow began a year earlier, from its record then of 14,164. From October 2007 through the collapse of Bear Stearns in mid-March 2008, the Dow fell 2,000 points as investors first thought they were looking at one of those old-fashioned cyclical recessions. Between mid-March 2008 until the US holiday, Labour Day, the DJIA seesawed, until Fannie Mae, Freddie Mac, Lehman Brothers and AIG all failed in a week and a half, credit markets froze, and amid the panic the Dow fell 5,000 points through 9 March 2009. The subsequent rally has not yet wiped away these losses, although it is back to about 10,000. However, unemployment in the US is close to 10%, a major watershed for Americans. Analysts and investors sense that, while the worst is over, it may now be years before the economy booms again.
"Joyfully to the breeze royal Odysseus spread his sail and with his rudder skillfully he steered." ~ Homer