STOCK MARKET TURMOIL: Dow Takes Beating Due to Chinese Sell-Off

STOCK MARKET TURMOIL: Dow Takes Beating Due to Chinese Sell-Off

Usually I would come here and talk some shit about SJWs. But, like most people around the world, I’m focused on the carnage taking place on Wall Street this morning. The markets opened with a steep ass 1,000 point drop. I’d heard reports that trading had been halted, but it hasn’t happened. In fact, the Dow has rallied back to -350 as I write this. If they can somehow keep this below 500, I would have to say that could be probably considered a success. But what’s caused all this, you ask?

China.

Shares in Asia were hit overnight, with the Shanghai Composite in China closing down 8.5%, its worst close since 2007. Global investors worry about growth in the world’s second largest economy. China’s central bank devalued the country’s currency, the yuan, two weeks ago, raising fresh concerns that a slowdown in the country’s economy was worse than originally feared.

Currencies and commodities are also falling sharply, because those markets rely heavily on strong demand from China. The Shanghai Composite tumbled by 8.5%, its biggest fall since 2007. That plunge wiped out this year’s gains as investors refused to buy into the Chinese government’s repeated attempts to shore up confidence.

In other words, fuck you China. But, it seems like a rumored interest rate hike was also driving the negativity today. Obviously, I think it’s safe to say that isn’t going to happen now. There’s no way The Fed can get away with that shit after this morning. I’d expect rates to remain unchanged throughout the rest of the year.

Obviously the financial markets aren’t my thing. I’d much rather be arguing about the culture war or talking politics. Hell, wrestling would be preferable. But, this is the biggest story of the day, so I figured a write-up was appropriate. Before I go, let me show you guys some reaction from Twitter:

(Downton Abbey reference)

1

(Mediaite link)

And with that, I’m gonna bounce on over to the next post. However, I’ll likely come back and update this one as the day rolls along. We’ll see where things end up when the smoke clears (Dow is down 342 points as of 11:48AM EST).

Ethan Ralph

Founder, Owner, & Editor-in-Chief of TheRalphRetort.com. Political fiend, gamer, & anti-bullshit.

  • Trevor

    So China’s economy is going down the shitter while oil is predicted to stay at below $50 a barrel until 2018? Looks like I’ll be holding onto my current job instead of going back to school.

  • Mr Snow

    And yet 99% of the world keeps doing what they were already doing.

  • mbits

    This has been a fucking fantastic opportunity. Things have been stagnant for so long, I was almost starting to worry there might not be a serious down-turn this year to buy into. Time to bulk-up on everything while the morons run scared, because they didn’t do their homework.

    • ThatGuy

      Now here’s a man who knows a bit about playing the market.

  • Grryan

    Time to buy – everything is on sale. You only loose money if you sell.

    • Elilla Shadowheart

      Bottom hasn’t tapped out yet, it could get much worse from here or better. I’m leaning towards worse considering China has $27T USD in their own soverign debt and ~150T-287T in liabilities.

      • A Real Libertarian

        From what I’ve heard it’s $3.5 Trillion USD in national debt.

  • Lost Question

    china regularly devalues their currency because it makes them very attractive for a lot of companies (especially the american company’s) its just now they are attempting to go ‘green” (im guessing they are tired of having days where you can cut the smog with a knife) while devaluing its currency and this is difficult.

  • Zach Puckett

    Oh, how long until we’re blamed for this?

    • Philip Weigel

      Probably already were.

  • gixxerharry .

    I bet printing even more dollars a day would help

  • Wonderkarp
  • Jesus Zamora

    So, can we stop this talk about China taking over the global market? Their “economy,” such as it is, is built on cheap labor and cheaper currency, with the occasional ghost city for artificial construction. You’ll never see them overtake the US or northern Europe, because there’s no consumer class outside of Beijing, Shanghai and maybe a couple other places.

    • Charmieos

      Its been artificially boosted anyway by North American companies pushing for use of Chinese Factories using virtual slave labor to push out dirt cheap goods to sell back to the West, crippling our economy or even weakening it seriously hurts theirs

      • Jesus Zamora

        Pretty much. China NEEDS us. They have nothing to export other than slave labor. Seems everyone can see that EXCEPT for Wall Street prognosticators.

        • Charmieos

          The issue is Wall Street has a vested interest in the economy staying the way it is, but the world is changing

          • Jesus Zamora

            True. We’re moving into the age of 3D printers making stuff even cheaper than Chinese slave labor can, and of higher quality to boot. The multinationals would do better to invest in that tech, making it more reliable and efficient, and training teams of technicians to keep the equipment running. But change is a beast the old guard has always hated.