The shading denotes the decline of the Dow Jones round September twenty ninth, when the TARP laws went down the primary time. Right here’s the element:

Supply: ATT.

Because the WSJ famous:

The Dow, which had opened sharply decrease on fears of extra potential financial institution failures, completed the day down 7%, with a 777.68 level drop to 10365.45. Losses to shares on the broader Dow Jones Wilshire 5000 index amounted, on paper, to $1.2 trillion — eclipsing the scale of the proposed bailout package deal. The Nasdaq Inventory Market completed down 9.1%.

My guess is the impact of a default could be a lot bigger on impression, given it’s information concerning the protection of a worldwide benchmark.

Edelberg and Sheiner talk about the implications of a default, citing amongst different factors a 2013 Fed examine indicating a 30% inventory market decline. Final week, CEA launched an evaluation, analyzing a situation involving a inventory market decline of 45%. (For comparability, the October 2008 to March 2009 decline was 22%.)