Monday, August 24, 2015

Economic Journal - Monday, 8/24/2015

(as of 7:00 AM PST)
 
Stocks all falling heavily around the globe this morning.  China's Shanghai Index led Asia markets downward, logging an 8% drop overnight.  European markets are falling heavily as well, down 6-7%.  The Dow Jones opened down 1,000 points, or 6%, with the Nasdaq down even more.  Selling is broad based with little interest in buying.  It is hard to point to a single factor in this market rout, but the dramatic slowing of the Chinese global growth engine has a to be a main point.  The proposed Federal Reserve Bank interest hike seems all but a footnote, being overwhelmed as an economic argument by much greater market forces.  Gold is holding up as a safe haven investment while oil has fallen to nearly $38 p/barrel, a price not seen in many years. 

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