Goldman Sachs warns US stocks could plunge another 16% before rapidly recovering.

That plunge is certainly possible. Likely, even. Still leaving some of my powder dry just for such an eventuality. I think the outside risk is another 40% fall, the minimum is another 10%. I’d say 16-20% sounds reasonable.

Unfortunately that will come with a lot of job losses, pain and misery to many millions, all inflicted on those who can least endure it while we frantically bail out the banks. Isn’t America a great country or what?