Whoa! $1.2-Trillion in Wealth Goes Poof!

Yeah, you read that headline correctly:

Sept. 29 (Bloomberg) -- U.S. stocks plunged and the Standard & Poor's 500 Index tumbled the most since the 1987 crash after the House of Representatives rejected a $700 billion plan to rescue the financial system.

The Dow Jones Industrial Average slid 778 points for its biggest point drop ever as $1.2 trillion in market value was erased from American equities. The MSCI World Index of 23 developed markets slid 6.9 percent, the most in 21 years.

I repeat: Whoa!

I would imagine a serious buyers market tomorrow and expect to see the Dow gain some back but that is one serious hit. This is new territory folks, even the Depression wasn't this intense. Back in 1929, the world was not remotely as co-dependent financially as we are now and that's clearly shown by the news you read above.

The markets will stabilize and, as I noted earlier, will adjust. Citibank, Bank of America and others will become the big players and a correction was in order but it ain't gona be pretty while that correction happens.