That, aside. two recent events have occurred domestically:
1. Former FedChair Greenspan's assertion on Monday that "
a recession in the U.S. - a huge export market for Asian companies - was "possible" later this year, ...
2. coupled with a Snafu at Wallstreet's computers, all contributed to the hugest drop in the Dow since 2001.
Of more importance, are several other matters:
1. The ascendency of anti-business, American Democrats and the luddite wing of the economists and activists - the isolationists, the anti-free traders.
Seeking Cover to Cut-and-Run
If Biden wants a true comparison to Vietnam, it would not be terrorists overrunning the Green Zone but an Iranian tank brigade, after American troops have been withdrawn and Congress has placed a ban on air support for Baghdad's defenders. That seems to be where the left-wing of the Democratic Party is heading, embracing defeat on a grand scale in the Middle east as an earlier generation of Democrats had done in Southeast Asia.
Anyone recall what happened to the American economy during the angst-driven "withdrawal" from Vietnam? Yes, we do remember long gas lines.
2. Hugo Chavez' (Venezuela) orchestrated threats to bring down the American economy.
3. Yesterday, Prime Minister of China made this assertion:
China promises socialism for 100 years
China's prime minister promised to maintain "socialism for 100 years" yesterday as the Communist Party tried to play down media discussion of political reform.
"We must keep a firm grasp on the basic principles of the Party in the initial stage of socialism, without wavering, for 100 years," Wen Jiabao, said in an article reproduced in the People's Daily newspaper and other centrally-controlled state media.
Dampening hopes both of Chinese dissidents and of governments abroad that have called for faster political change, he said that while democracy was necessary it could only come about on the party's terms and when the socialist system was "mature".
Asian, European Markets Drop for Second Day
TOKYO -- Chinese stocks bounced back Wednesday after their biggest decline in a decade, but stock markets elsewhere in Asia and Europe fell for a second day amid investor jitters about possible slowdowns in the Chinese and U.S. economies
Looks like a dark, dark day, no? It isn't. There are many other markets around the world appreciating the devaluing of the American dollar which makes U.S. Exports far more affordable. :)
Stocks Poised to Open Higher After GDP Data; China Rebounds
Adding to a positive mood was a recovery by stocks in China where a sell-off had prompted a global rout in equity markets on Tuesday. The Shanghai Composite Index rose 4% on Wednesday, erasing nearly half of the previous day's losses.
"I think you have the first round of bottom fishing going on, and people will view this as an opportunity to buy some value stocks here," said Bill Schultz, who oversees $725 million in assets at McQueen Ball and Associates in Bethlehem, Pennsylvania.
"We've come from a period where there was a little complacency and not much volatility, then all of a sudden you had this news coming from China....It was a shock to the system and now we have to decide how to go forward."
Federal Reserve Board Chairman Ben Bernanke is testifying before Congress today. Bernanke, whose comments will come after his predecessor, Alan Greenspan, warned of the possibility of a recession in 2007, will be watched closely for any indication that the Fed may change its stance on interest rates. Bernanke is due to speak at 10 am New York time.
Some days, it just doesn't get better than this. :)
Economics can be persuaded and effected by emotionalism, but ultimately, reality sears through the clammy fog.