As I commented earlier, do you think this may have anything to do with the progress of the illegal immigration bill through the Senate? It has an eerie feeling of Hawley-Smoot and 1929, where a very, very bad bill seemed to have its own momentum and no one could stop it.
No I don't. I do however think that sometimes we get a little myopic on this site.
Maybe. I'd say the drop is more likely due to the location of Wall Street: at the intersection of Fear Street, Greed Avenue, and Hope Boulevard.
In 1930, the Republican-controlled House of Representatives, in an effort to alleviate the effects of the... Anyone? Anyone?... the Great Depression, passed the... Anyone? Anyone? The tariff bill? The Hawley-Smoot Tariff Act? Which, anyone? Raised or lowered?... raised tariffs, in an effort to collect more revenue for the federal government. Did it work? Anyone? Anyone know the effects? It did not work, and the United States sank deeper into the Great Depression.
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Smoot Hawley had nothing to do with the market crash or the depression.
Nah. If anything, the prospect of millions of dirt poor third worlders willing to live like dogs on our doorsteps & work for peanuts should have investors doing backflips.
On the other hand, the explosion of the welfare state which will surely result could have them a bit skittish.
No. Consumer prices are up more than expected for April, and the market is unhappy that the Fed may raise interest rates again to control inflation.
Higher energy costs, Fed raising rates from fear of inflation, correction from a really strong and steady climb over past few months. Some folks with lots of money taking the opportunity to maximize their profits then reinvest. Nothing to panic about.
No, this is because the Federal Reserve is as clueless as ever and will keep raising rates until there is some serious economic damage.
I also agree with others that a stock market correction is long overdue. (But that's no excuse for the Fed.)