The Dow Jones Industrial Average has taken a sharp downturn, losing 125 point (so far) on the day. After 200, it's just a "freefall" day. The puts are winning. Shortsellers are grinning. New housing starts show that new home construction has just hit a 14-year low, and the U.S. Social Security scam (I argue that it legally constitutes a pyramid scheme, forbidden under state law, while other informed students hold that it is a Ponzi scheme instead; I might be persuaded with a good argument to the Ponzi side) is set to yield a 2.3% increase as an adjustment to past payments to cover cost-of-living hikes.
This, of course, means that Social Security will bankrupt even faster. I consider this good news, but only slightly. It is scheduled to see serious trouble in about 12 years, and lose the entirety of its holdings by about 2040. Those paying into it between now and then will simply be ripped off. This generation of workers will get absolutely NOTHING back after 2041.
Everyone has been desperately talking up the need for a solution to the SS problem for years now. The only solution is to give the stolen money back. But they would rather forestall the inevitable collaspe of an evil system and keep up the charade of a possible future solution. Elect Hilary now; she can save us (Yes, and McDonald's is now giving away free french fries to all customers forever). Are those good or what?
The Nasdaq remains only slightly affected (down maybe just 7 points), unlike the Dow, on the Middle East news afflicting oil prices. Watch for the ME news to begin affected other more remote markets only if the situation there destablizes significantly (I mean more than it is already). If the Middle East were a person, he'd be as stable as Charles Manson.
The Turkey incursion may upgrade him to Columbine status. If so, expect the Nasdaq and S&P to fall in line with the DJIA. If not, they should remain more insulated and offer something of a stability haven for diversifying one's portfolio.
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