During a congressional hearing a few days ago, Treasury Secretary Janet Yellen was asked an interesting question by Senator Catherine Cortez Masto.

I don't know what to do with this headline. It's so bizarre that it makes 1999 dotcom stock look reasonable. I am at a loss for words.

Wall Street blames the coronavirus for the current crash for the same reason the Democratic Party blames Russia for losing in 2016: to avoid responsibility.
A month ago I said: "the stock market is massively overvalued. Right now the stock market is a bubble in search of a pin."

On Tuesday, the U.S. Senate voted to begin floor debate on a bill (S. 2155) that would weaken regulations of banks, large and small, and grease the skids for the next bank crash. After the severe bank crash of 2008, in order to guard against future such crashes, Congress passed the Dodd-Frank law, which enacted the regulations the bill would now weaken. The Congressional Budget Office (CBO) scored the bill for budget costs, and figured $671 million over ten years. But the CBO said its estimate was "subject to considerable uncertainty" due to a "slightly greater" "probability in any year that a systemically important financial institution (SIFI) will fail or that there will be a financial crisis." However, in 2008, we saw what some of the real cost to the country could be: $821 billion to the federal government, plus $3.4 trillion in real estate wealth and 5.5 million jobs lost.

It's not as big as Monday's crash, but it more than wipes out Tuesday's dead-cat bounce.
The losses are starting to add up.

Before today the single worst day in Wall Street history was September 29, 2008, when the Dow fell 777 points. (note: percentage-wise the worst day was the 500 point 1987 crash)
Now look at today's headlines.


This comes after the 666 point drop on Friday.