We’ve had a few uptick days on Wall Street lately, but the less-than-rosy reports about consumer confidence, a jobless rate at a 14-year high and a dim corporate earnings outlook sent prices spiraling again - - plunging a combined total of nearly 1000 points over a two-day period and closing today still under 9,000.

The cause appears to be a combination of a legitimate emotional reaction, tightening credit and mounting credit card debt. (See our report on mounting credit card debthere)

Panic selling has hit Wall Street, credit card revenues have sunk to their lowest level in five years, and as credit across the board tightens, loans continue to slow. How bad will it get? John Markman, columnist at MSM Money thinks we could be looking at a stock market scaled back to1995 levels with the DOW hovering at around 4,000.  Why?  In Markman’s view, it’s a credit crater too big to fill, and it’s not just limited to the U.S.

We’re already seeing a slow down in the volume of cross-border international loans. It appears that governments are realizing that no amount of money is going to fix their systems.  Instead, they are just trying to manage the declines.

For a look at the numbers Markman used for his analysis, seeA Credit Crater Too Big to Fill?