August 24, 2015 – 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 580 points, or nearly 3.5%, at about 16,150 in midday trading. It had skidded as much as 1,089 points moments after the opening bell and cut its loss dramatically to about 115 before falling again. LA Times
After almost seven years of relative calm and stability, a stock market crash is finally upon us.
This is a very predictable crash stemming from a very widely known cause. Hundreds of analysts including myself — following the trail illuminated by Michael Pettis — have for a long time been banging on about a Chinese slowdown gathering an uncontrollable momentum, sending China into a panic, and infecting global markets.
What’s less clear yet is whether this is a correction or a crisis. My view is toward the latter, simply because confidence is fragile. Once the animal spirits of the market turn negative, it takes a heck of a lot to soothe them. And the markets look increasingly spooked. The fear is rising. Last week I tweeted that I felt the risks of a new financial crisis are greater than ever.
The reasons why are simple: Western central banks have gone a…
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