U.S. stock index futures screamed lower, with Dow futures tumbling as much as 350 points, as fears surrounding the health of China's economy multiplied.I have friends who are in full freakout mode right now, convinced that "The Collapse"is nigh and that we're inevitably headed for some sort of Hobbesian State of Nature -- you know, the ol' "solitary, poor, nasty, brutish and short" thing. I'd like to have a little more faith than that in our ability to recover from our mistakes. Is that faith misplaced?
These concerns saw the benchmark Shanghai Composite index notch up its biggest one-day percentage loss since 2007 on Monday, closing down 8.5 percent.
Let's talk about it. But first, a poll?
4 comments:
Absolute collapses are pretty rare. That said, there's been an awful lot of can-kicking and funny business. It *seems* like there ought to be an equal and opposite reaction. Isn't that some scientific theorem? Does it work for national and world economies? We'll see. In the meantime, Jordy Nelson is hurt and the Packers will still win the Super Bowl. Good times.
I don't know that we'll see a total meltdown; even in Argentina in '08 life continued with some degree of "normalcy" though with a certain Hobbesian "you have it, I'm going to take it" reality. Of course, there was the rest of the supposedly sane and civil world to act as a counterbalance. One concern of mine now is that if wealth is no longer measured by intangibles such as derivatives, propped up markets, and virtuoso plate-spinning, then real goods and assets become a premium for individuals - and for countries. Land, gold, grain, natural resources are no longer just totes on a board but essential for survival, and getting your people through the winter. If things are looking dicey at home, and the neighboring country has what you need, well....
To be honest, I'm concerned about this--I don't believe it's going to be a worldwide Weimar, but the global financial system seems to be ever more smoke and mirrors and less fundamentals. Hence when the emperor steps out and the little boy talks, the consequences are more drastic.
to show my faith in the currency, i bought 4 loaves of bread today. figuring i'll sell one for profit tomoro.
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