Wall Street

[Cail]

So after dropping like 500 points last week, the DOW is down over 1000 points today alone

[Spicyryan]

My poor poor 401k.


Market will bounce back though in time. A market this down is great at making people panic and others with more sense get excited and buy.

[Dantrag]

It's only down 407 now. Lucky I still have another 30 years then I'll worry about what the market(if it exists in 30 years) looks like.

[6souls]

Npr.org has an incredible reaction pic on their front page atm.

[Cail]

It's only down 407 now. Lucky I still have another 30 years then I'll worry about what the market(if it exists in 30 years) looks like.

Ended down 600 for the day

[thetruepandagod]

The Shemitah has foretold this suckas.

[Ragnus]

And I was driving into work thinking I was going to swap my 401k into a more aggressive savings plan. So much for that.

[thetruepandagod]

I'm really curious to see how bad this gets considering how many economist have been calling hardcore stock crash/recession for august/sept 2015 for a few years now. Time to open my etrade account back up

[Kyreth]

At this point, you wonder if the recovery was a paper tiger. Goodness knows this is likely the finishing kick in the balls for parts of the energy industry, especially smaller oil producer companies as the price seems destined to stay below $40 for an extended period of time.

[Spicyryan]

I'm really curious to see how bad this gets considering how many economist have been calling hardcore stock crash/recession for august/sept 2015 for a few years now. Time to open my etrade account back up

It is not a crash it is just a correction at the moment. The stocks have been way overvalued, and analysts have been talking about a correction hitting for a long time at this point.

The only recession that played a part in recent events is China's.
Can a crash kick start a recession? Sure, but this is firmly in margins that don't merit it.

What happened today was a good and needed event.

[tyven]

Dow up 296 off the break. GET THAT MONEY

[Andalusian girls]

It is not a crash it is just a correction at the moment. The stocks have been way overvalued, and analysts have been talking about a correction hitting for a long time at this point.

The only recession that played a part in recent events is China's.
Can a crash kick start a recession? Sure, but this is firmly in margins that don't merit it.

What happened today was a good and needed event.

it was, but also an entirely insufficient one. current market valuation is far more out of line with underlying economic activity than the 3.8% decline we saw yesterday. market cap to GDP is 118% (aggregate stock market capitalization / gross domestic product x100, historical mean of 85%), and the Schiller P/E ratio is at 26.6 (inflation adjusted price/earnings average over the past 10 years, historical mean of 16.6).

the administration's continuation of minimal interest rates along with quantitative easing to forestall deflation and pump up the market has resulted in the formation of a clear asset bubble by suppressing the value of bonds and the like to a historically low levels, particularly abnormal in a period of sustained GDP growth. further corrections are likely, and for the health of the economy ought, to occur, especially if The Fed goes ahead with its interest rate hikes this autumn. my fear is not a 'crash' but that the administration will be cowed by media and investor panic and delay the much needed rate raises.

which is the original sin of Keynesian fiscal policy, deficit spending during recession is one of the the most popular things a politician can do, but it is and will forever be politically unviable for elected officials to intentionally retard rates of growth during times of prosperity in an effort to forestall as yet unrecognized bubble formations and as yet unfelt inflation. indeed as we presently see it is often politically unviable to do so even with universally recognized bubbles present

[Spicyryan]

If only there was a rate up button.

[BerenTebogo]

Can someone translate that to english? I don't like it when math and science are mixed with wizardry, and thus am not a fan of economics.

[Ragnus]

The stock market is artificially inflated through book cooking and specialized recovery incentives from government bodies.

[Rooney]

The market is currently perceived to be worth more than it actually is at the moment, but at some point people realize this and the market goes through a correction (more than the couple % of daily trading fluctuation).

As for the government involvement, it's good for the government to spend during a recession to stimulate the economy. However, the government should ideally pull back on the economy during good times to prevent situations like the housing bubble bursting. This is not good for politicians to suggest, because who wants to hear, "No, you shouldn't be making that much money right now"?

It's kind of like driving a car. Go too slow and you won't get where you want to be when you want to be there. Go too fast and you might get there early, but you're also much more likely to crash. Moderate speed gets you there on time with minimal risk of crashing.

Someone feel free to do a better explanation/correct me if needed.

[BerenTebogo]

That was pretty good, thanks.

[thetruepandagod]

Can someone translate that to english? I don't like it when math and science are mixed with wizardry, and thus am not a fan of economics.

No one wants to be the guy to raise interest rates.

Unless Volcker comes back.

[Meresgi]

Can someone translate that to english? I don't like it when math and science are mixed with wizardry, and thus am not a fan of economics.

http://www.quickmeme.com/img/0a/0ae2...d8d7d1c004.jpg

Seriously, economics are just one of those things i'll just stare off into space at.

[Tarage]

The only economics I ever understood was that you should never buy a wolf apples, unless you have a load of furs.