Stocks plummet

Macroblog has a good summary and many links about yesterday's sharp fall in stock prices around the world. There was some speculation that the expectation of a significant downward revision in 4th quarter gdp growth played a role. Turns out that the speculation on a large gdp growth revision was spot on. 4th quarter real gdp growth was revised from 3.5% to 2.2%, about a 45% error.