The Federal Reserve has allowed equity drawdowns to stop at 50% in both 2000 and 2008 but never allowed them to exceed 50%, since mathematically larger drawdowns become exponentially harder to reflate; the next drawdown will likely be another 50% before Fed intervention.

factualpending

Speaker

Ed Dow

Evidence Quote

they stopped the uh in 2000 they stopped it at 50 and in uh 2008 they stopped it at 50 so my guess is we probably have at least maybe another 50% draw down

Source

Warren Buffett is Selling and Loading Up On Cash - Here’s WhyVRIC Media
Created: 8/11/2026, 6:41:08 AM

My Notes

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