back from vacation calling in the budget and finance ministers it get a hold on things before the bottom falls out, and, also, silvio berlusconi, the italian prime minister, also working today, and he says the prime minister office is not closing in august, and, finally, when the eurozone experiment starts it sounded like a big happy family. it is still a big family but not very happy. more like a family with a lot of debt. neil: thank you, buddy. you don t like the sell off? what if i said we have at least, at least, at least another 700 points on the dow to go? i don t have to my next guest is. he has been prescient about the fall off and what is at stake. what is worrying you? guest: well, the sell off will continue. there is no doubt. you can lock at everything from the domestic picture and the eurozone. and when you look at those
trade, a lot of price manipulation during that period and when the larger traders that can move markets are actually solidified you have vacation period, you have, again, at the love traders taking time off in august and when they return in september, you see that rally come back for the most part. but it is typically one of the worst months but keep in mind most of that is because of the fact that it is very thin trade. neil: good morning curious, i remember august 1987, was actually, we were reaching the new highs and the air was coming out into the fall, of course, and then the famous october 19, 1987 experience in a day we lost 25 percent of the dow value, and today it was 4.6 percent of the dow, if august goes well, does that mean the fall goes bad? or if august goes badly as it
reprieve with the fed s statement we will have an extended period to 2013 but that does not help growth in the economy. we have to see growth in the economy, housing and jobs improve to this country to see, really, the stock rally in a meaningful way. nasdaq closing down, and s&p closing down 51 and dow was down 520 points and bank of america issued today and there are concerns that bank of america itself may need capital and they my have to buy back a lot of the mortgages they have been dealing with since they acquired countrywide two years ago. so, a lot of that, again, is multiple factors and we have seen this each day, multiple factors, and the head wind is too strong. neil: and now hopping across the pend to europe.
what do you have? guest: that is what is happening, another volatile day for the stock market. we have seen volatility skyrocket each day whether the numbers go up or down. right now they are going down, the dow down 520 points. and as you mention, there are concerns of the french bank. france s triple a credit rating and capital requirements. can france, can u.k. banks, german banks, take the hit of a country like italy if they need a bailout? many say if they cannot handle that because italy is the third biggest economy in the eurozone. look at the dow, this is why help vestors investors are tired, five days of 400-point swings. and gold for the first time in history, today, going above $1,800 an ounce closing up $34. and a couple more things we got
circle for the entire word and can push us even further into the threat of having a double dip recession in this country and impact everything from earnings to employment, to, really, global security. so, there is a lot at stake right now. neil: thank you very much. and now, i want to bring people up to state on what happened with the markets. to let you know, guys, with the dow jones industrial average drop off, many say are we in a correction or bear market? a correction is anything between 10 percent and 19 percent off the high. with the fall off today the dow is off 16 percent from the high so that would warrant what we call a severe correction. the s&p, 500 stocks, is off 18 percent. the nasdaq, rich in technology, is down 17 percent from the high. remember, 20 percent is a bear