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originally posted by: Cauliflower
The Dow jones industrial average high this year was 18,351 and the low was 15,370 before the bounce.
Works out to about a 16% percent drop.
Compared with the flash crash of 22.61% in 1987 this is a mild correction so far.
originally posted by: MrSpad
originally posted by: gabe71886
I believe Ron Paul predicted this would happen.
Everybody knows these things are going to happen. Market corrections are a natural part of the market cycle. If they hit at the wrong time they can be troublesome but, when they hit at times like now when economy is in good shape they mean little.
originally posted by: burdman30ott6
a reply to: khnum
LMAO! Remember the Iraqi Propaganda Minister Mohammed Saeed? He'd make a wonderful Wall Street apologist. The news could interview him standing in front of the trading floor with traders physically lynching themselves and setting fire to their portfolios and manage to stay calm and level voiced while saying "The economy's fundamentals are strong! This is just a correction and the strength of the American economy will shine through!"
Bank of Japan Faces Pressure as Markets Sink
Growing expectations of additional monetary easing as markets frustrate efforts to generate inflation
TOKYO—Global markets are frustrating the Bank of Japan ’s efforts to generate higher inflation, heightening expectations that the central bank will undertake additional monetary easing.
Concerns about a worse-than-expected slowdown in China have sunk stock and commodity markets, leading the yen to strengthen as investors seek safety and raising doubts about whether the U.S. Federal Reserve will begin raising interest rates next month. Oil prices are at six-year lows, having already caused the BOJ to push back its target date for achieving its 2% inflation goal.
It all adds pressure on a central bank that faces a flagging domestic recovery and inflation that is stuck near zero. Japan’s benchmark stock index—which Tokyo sees as a barometer of policy success—has lost 14% of its value over the past week. The BOJ’s favored measure of inflation, due to be released Friday, is widely expected to have turned negative last month.
A debt crisis has taken the western world by storm, but few seem to be sounding the alarm. The U.S dollar, the go-to currency for global economic stability and growth, is imploding at an unprecedented rate.
Profit Confidential editors have been critics of the U.S.’s inability to reign-in government spending. Based on the White House’s own figures, the national debt will reach $20.0 trillion by the end of this decade—about 140% of our current gross domestic product (GDP).
Historically, countries that have incurred considerable debt and consistent national debt-to-GDP multiples of 120% or more have experienced currency devaluation. The U.S. dollar has been in a free-fall against other major world currencies since 2009.
You have to print money to make money. No one knows this better than the Federal Reserve. Since November 2008, the Federal Reserve has initiated three rounds of quantitative easing (QE) in an effort to create more economic activity and increase home prices.
What have three rounds of QE accomplished? It was supposed to increase lending, create more jobs, and lower the unemployment rate. Instead, banks are sitting on a pile of cash and remain tight-fisted, fewer jobs have been created, and the real unemployment rate remains high.
originally posted by: MOMof3
a reply to: marg6043
If that is american taxpayer dollars, why do we allow it to sit in banks? We all have senators and representatives that we vote for. I contact mine, Cathy McMorris Rodgers all the time. Surely, this issue is one that we could all be united on.