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I've just had a quick look at 87 and now and compared on two levels - very simplistic

1) speed of drop
2) quantum of drop

They are almost equal in quantum. So the severity of the drop is equivalent. What differs is the timeframe, with the 50% drop in Oct 87 happening awfully quickly and this drop taking over a year play out.

This difference would suggest to me, the most mug punter of all, that todays GFC is a far more insideous systemic crisis when compared to 87.

The pain was over with in 87, the wrongs were corrected and everyone got on with as quickly as the event itself. The recovery back then took a year and a bit. Is this possible for this situation??? I don't get that sense.

Depression? Multiple back to back recessions? Who knows ....

One thing is for sure, if teh car manurfactures in the US fall, then this period of recovery will be protracted and the US will not regain its stature as the global financial powerhouse

GC