Submitted by John Stauber on
Have you heard journalists and commentators using the term "market crash?" Neither have we, and we wonder why not given the facts. Reuters reports today that British "blue-chips slumped ... as
investors bailed out of financials and oils and fretted over the
outlook for firms like Canary Wharf and Reuters. Heavyweight banks,
insurers and pension funds -- formerly
prime supporters of equities -- sold each others' stocks to move
deeper into the safety of cash and bonds, while oil giant BP sagged after a
downgrade of oil companies. Traders struggled to find buyers willing to
snap up bargain-value stocks ... ." On February 24, USA Today noted that in the past three years
target="_blank">the S&P 500 is down more than 40%. The Nasdaq composite has
plunged more than 70%. Most people who bought stocks five years ago are
sitting on losses -- and waiting for a good rally to get out. That's a trend
that will continue for years to come, if history is a guide." But, both Reuters
and USA Today and other economic reporters carefully avoid using the "C" word preferring to cast the market crash as "a terrific time to buy."
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