For those who closely follow financial markets, the first two weeks of 2016 have been the most fun since the financial crisis triggered by the collapse of the housing bubble. The market has lost more than 10 percent of its value since its late December peak, destroying more than $2 trillion of stock wealth.
Markets elsewhere in the world have experienced comparable declines. Slowing economic growth has sent oil prices plummeting to less than $30 a barrel, pushing many oil companies to the edge of bankruptcy and devastating the economies of countries that are heavily dependent on oil exports. All this may sound very grim, but unless you were borrowing to buy large amounts of stock or oil futures, there is no reason to look for a ledge from which to jump.
As Herbert Hoover famously said, “The fundamentals of the economy are strong.” Okay, that’s not serious.
– Truth Out