UP … DOWN … UP … DOWN …
By FITSNEWS || As a palpable fear grips the global economy – which remains stubbornly resistant to all government “stimulus” efforts – U.S. stocks took their biggest nosedive of the year this week.
The Dow Jones Industrial Average plunged by a whopping 335 points on Thursday – shedding nearly two percent of its total value.
Meanwhile the Nasdaq fell by more than 90 points and the S&P 500 fell by more than 40 points – with both indices losing more than two percent of their total value.
The selloff comes one day after stocks soared by 275 points – highlighting the volatility of the market in response to a host of global concerns. Chief among them? Slippage in Germany’s economy – which drives the broader European economy.
German exports slumped 5.8 percent in August, the largest drop in more than five years. Factory orders are also down, along with industrial production. What’s driving this decline? Uncertainty surrounding the Ukraine crisis, which of course was kicked off by an American-led coup of the country’s constitutionally elected government.
Ah, diplomacy …
Anyway, Germany appears poised for a recession that would likely bring down the rest of the Eurozone.
“”The end game is that Germany is very likely to be in recession — that will bring the rest of the eurozone into recession,” Steen Jakobsen, chief economist at Saxo Bank, told Business Insider. “I think that will be in the first quarter of next year.”
21 comments
I enjoy the way Fits highlights drops in the Dow as foretelling Economic gloom,then ignoring the inevitable rebound a few weeks later.
Then again,Unfair!Imbalanced!
You don’t follow the reports by the big investors, obviously. And if you say you do, you are lying.
That fact that you are Ludwig Von MIses means we can expect you to fully understand that money printing results in both booms & busts, not necessarily collapse.
Uh-oh, there goes those alternative investments by the State Retirement System…another two billion vaporizes
I suppose it does not matter that the Dow is up nicely for the year even with this drop.
USA Threw Money At Wrong Things …. World Wide Depression Cometh. Prepare Yourselves.
You don’t follow history and if you say you do you are lying.
Republicans have been “predicting” such a collapse for at least FIFTY years that I’m aware of.
See Barry Goldwater in 1964.
And when it doesn’t happen?
They start the whole cycle up again.
See you in 2016 !
It would be more accurate if you said “Conservatives” have been “predicting” rather than Republicans. Conservatives have been predicting this because it is the only result that makes sense. But the progressives keep finding new ways to keep things going. Unfortunately they are devaluing the dollar while they are doing that. Check out these links:
http://stockcharts.com/freecharts/historical/djia1900.html
http://www.zerohedge.com/sites/default/files/images/SeanMaloneRiseFallDollarLarge.jpg
It really doesn’t matter since these are the end times. Rapture to commence anon.
I’m taking Glenn Beck’s advice and buying commemorative gold clad nickles from Goldline!
Make sure you buy his special seed package as well. You will need it when the crash come. And they work better than those seed package at the farmers market that cost 1/3 the price.
are they radioactive proof?
Actually a better deal is the US g’ment minting of pure .999 Silver coinage, a vast improvement over the older walking Liberty .92 Silver oz.’s.
The new coins will buy a full tank of gas or a big bag of groceries when the US paper dollar won’t buy ketchup for your fries.
The economy can stay insane longer than you can remain solvent.
One of these days the govt. will run out of other peoples money. Till then we can all laugh and play. LOL
At this point the stock market is a shell game, it fluctuates wildly on speculation and rumors. Most people I know who are successful in their investing have pulled the majority of their money out of the stock market. Only the money you’d consider to invest in high risk should be in the market.
You have to understand market economics to write about this stuff. Clearly.
Really Fits. You think the Ukraine is driving the decline in Germany??? Do I need to write for you? The market drop was caused by 3 different things, one of which you got with Germany. You had speeches by the IMF and the ECB president bc the German government will not let them do a true QE. You also had someone buy, either on purpose or accident, an ass load of VIX contracts at 10 AM. The US economy, at least the econ numbers released today and for a couple of days, were pretty good. The main question is if the US can continue to growth with the rest of the world contracting.
As for the Ukraine, Russia is on the verge of collapse as they are having hyperinflation as the price of oil sinks like a rock, killing their main source of income. They are going to have to tap into a chinese loan soon to survive. Told you Russia needed Europe more than Europe needed them.
And on top of all the war stuff going on what do you think will happen to a number of economies when the world governments finally stop treating EBOLA like it’s a new strain of FLU. No wait a minute they made a bigger deal out of the BIRD FLU than they are EBOLA.
So when Obama finally gets out from under his desk or off the golf course or where ever he has been he will have no problem locking down transportation between other countries and the US.
But he does not need to do it yet because really how many people from Liberia travel to the US. Why isolate just the area that is having the epidemic. That would be cruel.
He has to wait until it’s a full on world wide epidemic and then he can lock things down. That will really hurt the tourism industry plus all the other businesses that rely on moving people around. More businesses going under, more people out of work, more people/businesses needing government assistance.
You don’t want to waste a good crisis.
I’m a democrat, but seriously, Obama had more to say and more quickly about private comments made by an NBA team owner than he does/did about an international public health crisis that appears to be slowly permeating our shores. Oh, wait Magic Johnson cant buy the team, no wonder we havent hear anything cogent from Obama yet. If this were a true national concern like a Harvard Professor getting disrespected by the po-po, then he’d be all over it!!!
“… Germany appears poised for a recession that would likely bring down the rest of the Eurozone. …”
Don’t buy into the mean scream media spew about how bad it might get in Germany. The recent dip in markets is all domestic and politically driven.
BTW: Germany has kicked out all illegal g’ment subsidized workers and relocated most EU manufacturing into the former Soviet block countries, where a flat income tax of ~13% is in place. German multi-national companies are abandoning the EU arena as a place to set up mfg. shops, heading east to save themselves and their workers huge sums. … Just as the US multi-nationals are doing.