Wall Street: Big Casino

Autumn has wrapped the stock market in a persistent chill. Seven weeks ago, on Sept. 25, the Dow-Jones industrial index of 30 blue-chip stocks climbed to a 1967 high of 943.08, climaxing a 27% rebound from its October 1966 low of 744.32. Since then, a triple threat to the U.S. economy—uneven corporate profits, early signs of a new money squeeze, and the stalemate between the President and Congress over raising taxes—has knocked stock prices for a loop. Though the industrial average rallied 6.19 points last week, to close at 862.81, it has still...