The S&P 500 is the broader measure of health, and it has also been declining. However, with the Dow losing as much as it has so quickly, it’s showing volatility. China is dragging everyone else down because their fast-and-loose monetary policy, as well as their (yes, I’m gonna say it) lax regulation on their stock market. They don’t have a mature investing industry, and thus they are much more volatile than our system.On top of that, the government has been using an iron fist to control IPO’s, and they have been using government pension money to inject funds into the market (extremely bad call), and it’s costing people their retirements. China as a governmental body doesn’t have the nuance to handle fluctuations in their markets.On our side, so much of our market base has been built in with profits and riskier investments. That’s why we’re seeing the market correction we are. Just wait until the feds decide to actually raise interest… we’ll see another massive correction come down. Right now, with all the federal money that’s been injected into the Dow & S&P, we are riding on an over-valued market. The problem is with interest rates already as low as they are, we can’t go any lower and we have limited options for future issues. For instance, if we have another housing bust, what are they going to be able to do? That’s why I think she is being criticized, because they are effectively out of options. All they can do is sit on their hands and hold out on raising interest rate, or inject more money at the cost of the taxpayers. All-in-all, I am left with the “painted into a corner,” feeling.
The S&P 500 is the broader measure of health, and it has also been declining. However, with the Dow losing as much as it has so quickly, it’s showing volatility. China is dragging everyone else down because their fast-and-loose monetary policy, as well as their (yes, I’m gonna say it) lax regulation on their stock market. They don’t have a mature investing industry, and thus they are much more volatile than our system.On top of that, the government has been using an iron fist to control IPO’s, and they have been using government pension money to inject funds into the market (extremely bad call), and it’s costing people their retirements. China as a governmental body doesn’t have the nuance to handle fluctuations in their markets.On our side, so much of our market base has been built in with profits and riskier investments. That’s why we’re seeing the market correction we are. Just wait until the feds decide to actually raise interest… we’ll see another massive correction come down. Right now, with all the federal money that’s been injected into the Dow & S&P, we are riding on an over-valued market. The problem is with interest rates already as low as they are, we can’t go any lower and we have limited options for future issues. For instance, if we have another housing bust, what are they going to be able to do? That’s why I think she is being criticized, because they are effectively out of options. All they can do is sit on their hands and hold out on raising interest rate, or inject more money at the cost of the taxpayers. All-in-all, I am left with the “painted into a corner,” feeling.