The Dow is not the economy.
You’re right. The Dow is not the economy. But screwing with it makes a dandy weapon to use to harm the economy.
“The Dow is not the economy.”
No, but the Fed’s overreach yesterday and the AWFUL press conference piled it on, makes a recession quite possible next year, as well as a further continuation of asset deflation.
If the Fed wants to tighten then pick EITHER a rate hike OR the continued $50 billion of asset sales. Doing both in the face of a global shutdown is SCARILY STUPID and quite possibly will be the greatest government stupidity since the Clinton desire to goose home ownership to those not able to financially handle it.
No it isn’t but it is a perception. The most damage will be on over leveraged mortgage holders, which is many Americans.
>>The Dow is not the economy.
The Dow is an index of 30 stocks. Broader indexes have also fallen. The way companies are run these days, stock prices mean EVERYTHING. Small changes will lead to changes in the ways companies do business. So in a way, yeah, financial markets ARE the economy.
What idiot told you that?
The money will return to the market, stay the course, steady as she goes.