| 1. | the act or practice of letting blood by opening a vein; phlebotomy. |
| 2. | bloodshed or slaughter. |
| 3. | bloodbath. |
| 4. | Informal. severe cutbacks or reduction in personnel, appropriations, etc.: The company went through a period of bloodletting in the 1970s. |
Bloodletting
A period of severe investing losses.
Investopedia Commentary
The term comes from a medieval medical practice that involved bleeding out a patient. It was believed that afflictions resided in the blood and could be eliminated by draining away a large quantity. Thankfully, this practice has been abandoned.
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See also: Bear Market, Capitulation, Correction, Dead Cat Bounce, Falling Knife, Flight to Quality, Panic Selling, Recession, Torpedo Stock
bloodletting blood·let·ting (blŭd'lět'ĭng)
n.
The theropeutic removal of blood, usually from a vein.