Anyone know exactly what is going on? I don't do investing, but this looks bad. Far worse than Bitcoin on bad days.
The Dow Jones industrial average tumbled more than 470 points, and other indexes followed suit.http://latimesblogs.latimes.com/money_co/2011/08/global-stock-markets-sink-again.html
At 7:45 a.m. PDT, the Dow was down about 474 points, or 4.2%, to 10,932. The broader Standard & Poor’s 500 was off 4.4%.
Investors scrambled into Treasury bonds, with the yield on the 10-year Treasury note threatening to fall below the formerly unimaginable level of 2%. The yield dropped to 2.02% from 2.16% on Monday.
In no particular order.
1) We are in a Global Economic Depression and what looks like the beginning (middle?) of the end of the Dollar as a world reserve currency.
2) High Frequency Trading and Algorithmic trading have destroyed price discovery in the markets
3) The hyper-liquidity of the market + the tremendous amount of speculation capital = high volatility
4) The average US household is soaked with debt
5) 70% of our economy is consumer consumption, a sign of a very, very weak economy in general
6) Globalization is a failure yet our bankrupt elites refuse to see it (too much money and power at stake)
7) The idea of the "Post Industrial" society is a failure (same with "Service Based Economy")
'Zero growthers' (as if all economic growth is expansionary) are another bankrupt school of quasi-economics that imped progress
9) Our political process is basically bought and paid for with few exceptions
10) 95% of debt-money issued is from private banks, not Government spending, a huge portion of this money exists as derivatives and insane leverage ratios on Wall St.. This 'money' represents fictitious capital as it is mostly in derivatives that are unmoored from the real productive economy of wages, labor, productivity, products and development.
That's some of the problems we face in reality. But if you ask the wrong person around here that bases their entire knowledge of the world on 1 Von Mises book then you'll get different answers.