IMF Warns Of Meltdown

The International Monetary Fund warned today that the global market is on the brink of a financial meltdown. This comes on the day that President Bush and the G7 financial ministers met to discuss the crisis in Washington. The IMF head warns that the global market could crash another 20% before we see a positive turn. Here is a brief description of the function of the IMF:

The IMF manages the world's financial systems, primarily by implementing the policies of its 185 member-countries, in particular exchange rates between countries and how payments flow between countries.

What would another 20% drop mean for the Dow? Considering that last week the stock market had it worst week ever, it could get nasty. The Dow closed at 8,451.19 points on Friday. A 20% drop from this figure would mean that the Dow would have to lose another 1,690.26 points leaving the Dow at 6,760.92 !! If the Dow would to close at that figure, hypothetically speaking, the Dow would be at it's lowest point since April 1997.

Also, we have not had a positive gain of the Dow in the month of October (8 days). During the month, the Dow has lost 2,728.33 points (25.14%) !! That is an average drop per day of 341 points. That is incredible. At this pace, we will dip below 3,700 points by the end of the month. We have gone from 10,831.07 points to 8,451.19 points this month.

I hope these figures are way over blown and do not come true. Considering how the market has behaved in the last week, anything is possible.