NEW YORK – The stock market has had one of its most turbulent days ever. The Dow Jones industrials plunged nearly 1,000 points in half an hour amid concerns that Greece’s debt problems could halt the world financial recovery.
The only problem with this statement is that there never was a recovery, there was merely an artificial stimulus of money and credit from the Federal Reserve and government with the intention to keep unsustainable ventures from failing. A short-term high is all we’ve had over the past couple years, nothing else. The more that the government and Fed prevent the markets from correcting and allocating money to productive areas of the economy, the worse the inevitable bust will be on the U.S. and world. This is only the beginning.
The Dow has managed to recover two-thirds of its losses and close down 347 at 10,520. But all the major indexes lost 3 percent in a day that recalled the market turmoil of the 2008 financial crisis.
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