Yes, I know, a total crash, 1930s style surely does. Companies can ultimately go bankrupt as its balance sheet is turned inside-out and company valuation is reduced to nothing.
But a small one-day downturn ("black monday", "black friday"), really, isn´t that just a sudden adjustment?.
Plus, I believe it affects americans more than people in other nations. Americans´ savings and retirement money are tied in some cases (most cases?) to the stock markets. Thank the heavens that is no longer the case down here, after we ended the private pensions system. Also, very few of the local companies are listed in the local stock markets.
Me? I´d abolish the stock markets. Even in a pure capitalist system, the private, family-owned business beats the stocks market craziness and short-term quarter-to-quarter outlook and related histeria.
Just my $0.02
FC (Buenos Aires, Argentina)