Oh dear.

It’s Monday tomorrow.

When talking of stock markets, Mondays in the mid/end of October haven’t been good, historically speaking.

Monday October 28th, 1929, saw the second largest percentage drop in the Dow Jones Industrial Average. -12.82%

The largest ever percentage drop in the Dow, -22.61% was Monday October 19th, 1987. And our FTSE’s largest ever percentage followed. The FTSE dropped 12.2% in one day.

Okay so over the last week’s trading we had a 23% drop in the value of FTSE, closing the week down at 3932 points.

If tomorrow is going to be another Black Monday, and our biggest, we just need to drop say 13% in one trading day.

Opening at 3932 points, dropping a staggering 511 points, and finishing down at 3421.

Oh dear. That could so easily happen.

The money needed by the four big banks (Royal Bank of Scotland, HBOS, Lloyds TSB and Barclays) to ’shore up it’s defences’ is going up by the hour (what are we now 50 billion? 60?) and us taxpayers are paying for it. A statement before the markets open tomorrow will probably have no effect in restoring confidence.

Oh, and the LloydsTSB takeover of HBOS will collapse as LloydsTSB attempts to renegotiate (ie: negotiate it’s way out!)

We’re going down.

Black Monday then.

Oh dear.

PS: Of course, I’m rather hoping I’m wrong.

This entry was posted on Sunday, October 12th, 2008 at 10:13 pm and is filed under Misc Posts. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.