This is pure conjecture so please treat it as such:
Sept 11 2001 USFed pumped massive liquidity into markets to keep them running smoothly due to "terrorist attack" but this slump clearly did not start that day, indices were powering downhill from early June '01.
This didn't really stem the tide and we took the hit anyway, and DJI dropped to 5 year low in Sep 2002.
Followed quickly by an almost exponential rate of M3 money creation to the rediculous Sep 2007 highs.
Now like I said this is just conjecture and the result of my musings, no need to take it too seriously,
but what if Sep 2001 was the correction we were supposed to have? M3 was already reaching crazy levels then, with US politicians on both sides of the red/blue divide screaming for someone to stop the madness
US M3 chart:
If all that funny money was "supposed" to be wiped off the books way back then, can we safely use the last pre-2001 tested bottom as a possible bottom for this recession?
Am I making sense or just ranting like a crazy man.