The U.S. stock market had a wild Monday morning in response to another sell-off in China and other major countries, with the Dow Jones industrial average first plunging more than 1,000 points before surging back to trim its losses.
The blue-chip industrials were off about 115 points, or 0.7%, at 16,350 after skidding as much as 1,089 points moments after the opening bell.
Nonetheless, the average has dropped nearly 7% in the last week and nearly 11% from its record high of 18,312.39 set on May 19.
Other key U.S. indexes also tumbled Monday into so-called correction territory — a decline of 10% or more — over the three days.
The benchmark Standard & Poor’s 500 index was down about 19 points, or 1%, in midday to about 1,950.
The Nasdaq composite index also was off about 19 points, or 0.4%, in midday to about 4,680.
Chris Hardt, a financial advisor at Edward Jones, has been telling clients that Monday morning’s pullback is not unusual.
“The market will pull back 10% about once a year on average,” he said. “This is a normal thing.”
But wait! It Gets Even Better!
Today's stock market drops worldwide afford further evidence that the past decade has been China's 'Roaring '20s' -- and that the chickens are now coming home to roost," said Cornell Law School professor Robert Hockett, an expert in financial and monetary law.Snip
"China's emerging middle class has taken on huge quantities of private debt in recent years to buy everything from real estate to stocks," he said. "The result has been a sequence of classic credit-fueled asset price bubbles much like those experienced by the U.S. in the 1920s and early 2000s.
"Now that asset prices have leveled off and reversed, millions of Chinese are faced with the prospect of owing more on their debts than their assets are worth -- just like U.S. investors and homeowners before them."
The sell-off occurred despite an announcement by China’s Cabinet on Sunday that authorities would allow pension funds managed by local governments to invest in the market, potentially providing a boost worth hundreds of billions of dollars.
NOW the Chinese people are fucked liked the rest of us.
This is exactly the kind of shit that got the entire world in trouble.
The Spin Meisters are all telling us to remain calm,yet they know damn good and well the whole thing is blowing up in their faces.
Who ya gonna believe, professional gamblers or your own lying eyes?