These aren't happy times, but they're historic ones. The Dow Jones industrial average suffered its worst June since the Great Depression. In July it crossed the threshold into a bear market, dropping 22% from its October 2007 high.rnThe liquidity crisis continues to unfold, proving far worse than even the most pessimistic Wall Streeters expected. Several months ago most market savants thought the biggest banks had worked through the worst of their hits from bad mortgages and collateralized debt obligations, raising enough capital to make up the losses they were taking. Now a second wave of big writeoffs is occurring, along with markdowns by midsize banks with large burdens of construction and real estate loans.
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