Stock Market

Stock Market Tanking, Dow Slips Below 17,000 for First Time in 10 months

"Panic sets in, not over yet," claims CNBC as major indices tumble worldwide.

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Not a good Friday for Wall Street:

Fears of a China slowdown ripped through global markets and sent U.S. stocks to their lowest level of the year on Thursday.

All the major indexes were in the red. The Dow fell 358 points to close below 17,000, for the first time since last October. The index fell 2.06%—the the worst loss since February 2014.

The S&P 500 fell 2%, turning negative for the year. The Nasdaq dropped 2.8%.

It's a major warning sign given that global stock markets, such as the U.K.'s benchmark index, have already entered a correction—a 10% drop from its peak in just four months.

The Dow was down over 7% from its recent high in May.

CNN Money says the drop is due to fears of a global economic slowdown (especially in China); nervousness about whether the Fed will increase interest rates for the first time in forever; slumping prices for oil and commodities (not such a bad thing actually); and a ton of bad news related to media stocks (Time Warner could slough off AOL but it's still tanking).

More here.

At CNBC, one headline reads "Panic sets in, not over yet."

Over at Bloomberg Business, here's a look at how hard China's slump is affecting the world (BTW, gold just had its best week in 2015, not coincidentally).

During FreedomFest in July, Matt Welch interviewed Peter Schiff about "the Fed, Rand Paul, and the Next Financial Crisis." Take a look:

Related: Doug Casey on "Why the U.S. is the Next Greece."

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  1. Oh, Reason. Do you want Buttplug? Because that’s how you get Buttplug!

    1. HIS BELOVE ESS AND PEEEEEEEEEE!

  2. Buttplug? You around, buddy? Need to talk with someone?

  3. Shriek will be along any sec w/ counterpoints…

  4. Nobody say his name again. If it’s said one more time he’ll appear.

    1. Puttblug!

      1. Blutguppy.

    2. I would say it’s a hilarious coincidence, but he’s. just. that. predictable.

    3. Too late. It only takes 3 times.

      1. Can’t blame these guys. I’ve been calling him out for several days now. Man has his ass been quiet.

        1. Well if he had any money in oil or emerging markets, he’s fucked.

          1. I had (operative word, had) a good chunk in oil.

            Luckily, I have another chunk in gold…

        2. We’ll come to find out that he saw this coming, and he was shorting equities. He’s made millions! Because Obama is awesome.

    4. Hope he took my advice and sold all his stock last week.

  5. Summer of Recovery!

  6. I just came here to make fun of PB.

  7. Wow, this is new ground for Reason. Actually talking about econ shit… nice break from the College Campus Twitter feed.

    Over/under on shrike surviving his ride to the ER?

    1. They had a pair of really cool economic articles yesterday. Praise them when they do, positive reinforcement works, too. Or so my orphans report.

    2. Comedy gold:

      “what ails the world economy right now is that governments aren’t deep enough in debt.”

      -Krugman

  8. Given that there is 200 trillion dollars worth of debt worldwide, I’d say we’re a long way from bottom.

    1. If you include unfunded government liabilities this number is really really low.

      The most recent numbers I saw were from 2012 and has total debt (government at all levels, corporate, and private) including unfunded liabilities for the US alone north of $180 trillion

      http://grandfather-economic-re…..-table.htm

      You have to figure that since then at a minimum the US has to have climbed to north of $220 Trillion

  9. The good news is all the Fed has to do is lower rates to get this jumpstarted again!

    1. BWAHAHAHAHAHAHAHAhahahhahhahahahahhaaaaaaa

      heh…

    2. Obama will fund a fourth rail line down the California coast. That should do it.

  10. This crossed my inbox today. I wonder if the gods are telling me that it’s time to retreat into the bunker and give the kids their spiked applesauce with cyanide pill chaser.

    Queer Melodramatics: The Feeling Body and the American Democratic Imagination

    Queer Melodramatics: The Feeling Body and the American Democratic Imagination seeks to locate and analyze the ways in which the rational, enfranchised democratic citizen-subject is produced through the generation and management of “feeling” bodies, which play a crucial role in the ongoing validation and maintenance of American democratic hegemony. This problematic is investigated through a focus on the visual representation of queerness as an experience of affect. Under American democracy, the queer body has been historically displayed as a body wracked by feeling: this study is an attempt to examine the ways in which this display is intimately involved in the production, and restriction, of American democratic life. Throughout American history, the experience of democracy has been translated into popular and consumable forms through a specifically American melodramatics. Queer Melodramatics thus seeks to provide instructive readings of America’s struggle to rectify the problem of queerness through the analysis of melodramatic televisual and filmic texts …

      1. Yeah, pimpwagon. We’re FINALLY talking about markets and econ and you gotta bring facebook back into it?

        I’m watching you…

      2. Yeah I don’t think it would have made any more sense in any other thread either

    1. What in the fuck? Is this like Coates’ “black bodies” retarded cousin?

      1. Seems produced by the same random word generator.

    2. What the fuck? Is that even English?

  11. Hey Nick, where’d you get the picture of Shrike for the blogpost? Does he have an FB page?

  12. If there is a major recession at the end of Obama’s term, I wonder if the Progressives will be intellectually consistent and blame this on Obama like they blamed the 2008-2009 Recession on Bush and the Republicans.

    1. Oh, the pain from laughing…..

    2. Sure, why not? It’s not as if the Dems were hollering to do away with asset forfeiture seizures of people’s homes and bank accounts, or the outward tsunami of looter prohibitionism and the wreckage in its wake. Both the Inner and Outer parties are firmly committed to the communist income tax, prohibition (though it’s ticker price is down a coupla points), asset forfeiture “sharing”, and forcing other countries to pass laws jailing and shooting anyone who doesn’t eat Subs, drink Bud and smoke Marlburrels. This is a two-party system, f’ Bob’s sake, with both hands in the same till, and one learns not to expect honesty from thieves.

  13. Bull markets climb walls of worry.

    Did someone use my name in vain?

    1. Now we know you live 6 minutes from ER.

    2. Did you sell like I advised you Shrike?

      1. More importantly did you find your lost password to the Shrike account?

  14. The average American who might have some money in the market (either individual stocks or more likely mutual funds in their IRA or 401(k)) will watch the news tonight and shit their pants, stress all week-end and then sell come Monday morning, thus ensuring that they do lose money. The average American who might have some money in the market (either individual stocks or more likely mutual funds in their IRA or 401(k)) will watch the news tonight and shit their pants, stress all week-end and then sell come Monday morning, thus ensuring that they do lose money. I do not know what the market as a whole (as measured by any one of the indexes) is going to do next week, but some great companies are approaching sale prices. Yet, the blood is not yet running in the streets. Sure, trading volume was high today, but then it was also options expiration day which accounted for some of that volume. There does not yet appear to be capitulation. Those who have the cash reserves and are not overcome by emotion will be soon be able to pick up some good bargains in the market.

    1. Stock hustlers will say anything to keep people from liquidating. The one thing they never say is: mass-confiscation of bank accounts and asset-forfeiture looting have nothing whatsoever to do with people taking their money out. Herbert Hoover refused to believe any such thing, and his banker buddies likewise… yet they never came out in so many words to allay that particular fear. It is, after all, kind of intuitive that prohibition, crashes and depressions have something in common besides coincidence.

      1. No, the hustler’s job is to get you to buy high and sell low (or to sell you shares in a worthless company to begin with). Remember, for every share bought, someone has to sell. The hustlers want you to panic and sell in situations like we are beginning to see in the market. How else then can the hustlers buy up shares in profitable companies at bargain prices?

  15. Flash crashes are caused by tax collection “laundering” grabs and asset forfeiture looting under the cloak of prohibition. The correlations are absolutely perfect. It is hard to come up with a simpler case of ordinary induction. The generalization is airtight.

  16. SO the voluntary exchange of assets of value is impaired. Why might that be?
    Imagine a group of ornithologists debating about what spooked a flock of geese or lapwings they’d been observing in a marsh. Some might claim a hawk had swooped overhead, unseen through the bird-watchers’ binoculars. Others could easily wonder it the birds might not have noticed the ornithologists themselves and mistaken them for hunters. But a child could question whether perhaps a snake might have slithered in–unnoticed in the grass–and caused the frightened birds to take wing. Let the Income Tax Amendment of 1909- 1913 and the Prohibition Amendment of 1917-1919 be two heads of the same two-headed snake and this sort of interpretation begins to make sense. When was the last time you read, actually read, a single page of “anti money laundering” (pro tax collection) rules the USA exports in bulk?

  17. Look at the photo at the top of the page. The poor starving bastard is wearing a barrel, the thing used to transport beer when America was free. America was free before Christian prohibitionists passed the 18th Amendment. Barrels were worth money before and after Prohibition, but during, the job barrels were built for was illegal. America became poor under prohibition and the communist income tax for exactly the same reasons communist Russia became poor under the income tax and prohibition.* It was what Ragnar explained to Hank Rearden: “Do you know the conditions of existence in those People’s States? Since production and trade, not violence, were decreed to be crimes, the best men of Europe had no choice but to become criminals.” That is the situation in nationalsocialist America and communist China.

    * The soviet commies had the presence of mind to repeal Czarist alcohol prohibition in 1926.

  18. Excuse me… the soviet commies relegalized beer in 1925, eight years before neofascist Amerika awoke to economic reality. That the depression continued in both countries is testament to the destructive power of income tax enslavement.

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