Dow drops over 380

Wild, wild day on Wall Street. To really understand what it all means, read BondDad's blog. He explains the day in depth (with charts) concluding:

This market is not in good shape. There is a ton of concern about the subprime market. In addition, this concern is leading to a ton of jitters that lead to quick selling pressure in the markets.

It is noteworthy that during the pre-vacation press conference, Bush tried to soothe the markets today:

Since we began cutting taxes in 2001, our economy has expanded by more than $1.9 trillion. Since the tax cuts took full effect in 2003, our economy has added more than 8.3 million new jobs, and almost four years of uninterrupted growth. Inflation is low, unemployment is low, real after-tax income has grown by an average of more than $3,400 per person since I took office. The American economy is the envy of the world, and we need to keep it that way.

Our economy is growing in large part because America has the most ambitious, educated and innovative people in the world -- men and women who take risks, try out new ideas, and have the skills and courage to turn their dreams into new technologies and new businesses. To stay competitive in the global economy, we must continue to lead the world in human talent and creativity.

And the markets responded: