Why Global Financial Markets Are Going Crazy.
Last week, global financial markets were churning, but it really only mattered if you were an oil trader, Chinese bureaucrat or hedge fund manager.
Now it’s starting to get scary for everyone.
An 8.5 percent drop in the Shanghai Composite index in Monday’s trading session spread to financial markets across the world. In the United States, the broad Standard & Poor’s 500 index was down 2.5 percent in Monday morning trading, after steeper declines in Asian and European stock markets, falling prices for oil and other commodities, and a rush of money into the safety of United States Treasury bonds.
What’s fascinating is that there is no clear, simple story about what is different about the outlook for interest rates; United States and European corporate profits; or economic growth compared with one week ago, when the S.&P. 500 index was 8 percent higher.
Here’s how to make sense of what is a truly global story, stretching from the streets of Shanghai, where stock investing has become a middle-class sport in recent years, to the oil fields of both the Middle East and Middle America, to the hallways of power in the Federal Reserve in Washington.
This Started in China, but Is a Lot Bigger Than China
The immediate trigger to the outburst of global volatility was China, where the sharp drop in stocks Monday continued a rout that has been underway — with periodic pauses thanks to government interventions — all summer.
http://www.nytimes.com/2015/08/25/upshot/why-global-financial-markets-are-going-crazy.html?
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will it ever end?
Why can't they manage an economy so we don't have these ridiculous ups and downs?
I'm sick of this. Sick to death of this endless crap. We can do better.
Cher
we're in a worldwide economy now, exacerbating all the bad crap. There is no 'they' remotely able to manage it.
