Take a weekend of pent-up selling demand (courtesy of S&P’s U.S. debt downgrade Friday night), ugly overseas markets, and more weak economic data, and what do you get?
A steep, opening drop in U.S. stock prices.
The remaining questions: 1) how much are they going to gyrate before prices stabilize?; and 2) what step(s) will authorities (the Fed, ECB, etc.) take to intervene?; and 3) will they be any more effective than previous measures?
