Lots of red ink has been flowing two days in a row now. According to Jason Zweig in his book Your Money and Your Brain, “after two repetitions of a stimulus ... the human brain automatically, unconsciously, and uncontrollably expects a third repetition.”
If Zweig is right, then we must all be anticipating the end of the world. Stocks will keep dropping every day until there is nothing left. Things really are different this time. The sky is falling.
All kidding aside, I do find myself looking for someone authoritative to explain that the world’s financial problems are now under control. I’m not sure who qualifies as sufficiently authoritative. President Bush does not. Warren Buffett might be good enough, but he’s too busy buying up businesses at fire-sale prices.
For now, the financial system is still in surgery, and we’re in the waiting room hoping to hear from the surgeon soon.