DOW Plummets 358; Oil Passes $140
Why the Stock Market Had a Terrible Day
The big surprise is why anyone should be surprised the stock market dropped 3 percent today. The immediate trigger was the price of oil moving above $140 a barrel for the first time. A secondary trigger was yesterday’s decision by the Fed not to reduce interest rates. (Some conservatives maintain it was the Fed’s failure to RAISE them that caused today’s ruckus on Wall Street, because global investors took it as a sign they could do better by investing elsewhere than the U.S., which caused the dollar to drop. They’re wrong. The recession is the biggest worry for everyone, including global investors.) Another was the implosion of the US autos sector, and additional writedowns by major Wall Street banks.
But behind all of this is the one fundamental fact that economic analysts would rather not dwell on: American consumers are at the end of their ropes…
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