Worse Than '87 Crash: Current Crisis Hitting Main Street Hard
posted on
Oct 07, 2008 01:35PM
The current turmoil in the financial markets is "far worse" than the 1987 crash, the 1998 Long-Term Capital Management crisis, or the bursting of the tech bubble, says Jeff Matthews of Ram Partners.
Those past episodes, while painful, were mainly Wall Street events, says the veteran hedge fund manager, blogger, and author. But the current cycle is very much a Main Street phenomenon that is hitting "real economy" companies and employees alike, as Matthews recounts with a variety of anecdotes:
While Matthews sees opportunities in selected stocks (he declined to name names), he fears third-quarter earning are going to be "awful." The resulting lowering of still-too-rosy profit forecasts for the fourth-quarter and 2009 is going to provide a ready excuse for another round of selling.
See the video comentary at: http://finance.yahoo.com/tech-ticker...
John