In term of points, the drop of 777.68 points on Monday September 29, 2008 is the largest In term of points, the drop of 777.68 points on Monday September 29, 2008 is the largest drop in the Dow Jones Industrial Average. The DJIA closed at 10,365.45. This was a drop of 6.98 percent. The previous record point drop was the 684.81 loss on Sept. 17, 2001 - the first day of trading after the September 11 terrorist attacks. The drop of 6.98 percent only ranks as the 17th largest percentage drop. The record in percentage terms was the 508 point drop from 2247 to 1739 on October 19, 1987 - aka Black Monday - which was equal to 22.6 percent.

This latest distortion by The Fed has just destroyed the last bit of earnings power the banks had. It's gone. All to preserve the ponzi scheme in the Federal Government - the same Federal Government that just sent a bleat to Bernanke about tampering with the economy.

What did Bernanke's act tell us?

He burned the furniture for warmth today. He and the rest of the Fed cabal are done; this was the card that was known to do much more damage than it could ever help anyone - or anything. He burned the furniture to allow the Federal Government Ponzi to continue for one more year while utterly screwing the private lending industry of all sorts from banks on down.

There is no shortage of lendable money. There hasn't been since this entire mess began. The problem was that money was too easy, not too tight, and people ran into the wall on their ability to pay.

You cannot drink yourself sober.

The game is over folks. Europe is now the lynchpin between here and the SPX at 500, and that's a short-term stop between here and an entirely-possible outcome of where it began in 1980.

That's S&P 100, not 500, and Dow 800.