I told you 27K Dow Jones was crazy...you said it wasn't...you were wrong!

Thanks to Mech 61 for the link!

via Business Insider.

Stock markets around the world are selling off sharply as fears about slowing economic growth and rising interest rates spook investors. Declines in US futures Thursday show the sell-off is not slowing down.


The Dow Jones saw its third-largest one-day point drop in history on Wednesday; the bloodbath then spread to Asia, with China's Shanghai Composite losing more than 5%.

Europe was suffering Thursday, with all major bourses down at least 1%, and the so-called "fear index" was spiking, up 5.4%.

Story here. 

The Dow sinking 800+ points in a day was predictable.  Why?  Because the market has been "juiced" since the first year of the Obama Administration. 

According to economic theory that I've read, once we were out of the recession we should have seen the Fed raising rates.

According to STANDARD economic theory the idea that corporations could make returns of over 10 percent year after year was nothing but voodoo economics.  It's just not REALISTICALLY possible.

Additionally we've seen all kinds of bubbles that have defied (or rather allowed to be) by the Federal Govt because they add more fuel to the economic fire.  If this is a real correction we could hit 14K...the funny thing? That would still leave a tremendous amount of fluff in the market...while knocking the DOW down 50+%.

Now?

Now it's time to pay stupid tax.

One last thing.  I support Trump's trade war with China.  I believe he had to include some of our allies just because of how China exports its goods into the US.  They use "cut outs" in the form of the European Union, Mexico, Brazil...basically anyone we have normal relations with to lower the trade deficit we have with them, while at the same time pumping up their exports.

But Trump should have made a speech explaining his rationale and the short term pain that we would have to endure to right the ship.

But back to the military.

A sound economy is the first form of military strength.  We either get our economic house in order or we will our of necessity become a "former" great power.