THE COALESCENCE

How Powerful Evolutionary Forces are Transfroming Seven Billion Individual Humans Into a Single Harmonious Social Organism

DANCING IN THE DARK

From yesterday’s New York Times:

“The mood in the markets has taken a sharp turn for the worse. Headwinds are becoming stronger by the day.” — Mervyn A. King, governor of the Bank of England.

“What we have been dealing with in recent weeks is a crisis of confidence among investors globally in the economic leadership in both the European Union and the United States. “– Douglas Porter, economist.

“The Fed came out and said we are staring recession in the face.” — David Rosenberg, economist.

“Clearly, the problems in Europe and the growing risk of recession makes banks less valuable. The extreme nature of the reaction reflects panic.” — Douglas J. Elliott, Brookings Institution fellow.

“There is a level of fear out there that is similar [to 2008]. It’s not just the fundamentals. It’s the fear of the unknown.” — Michael Hansen, senior economist at Bank of America.

“The market psychology is such that investors no longer seem to know who or what to root for.” — Kevin H. Giddis, investment manager.

If you need more proof that the international financial community has no idea what is happening in the global economy or why, consider the evidence of the past week. Last Thursday, the Dow Jones Industrial Average fell 512 points, or 4.3%. On Friday

it rose 60 points or .5%. But then on Monday it resumed its downward plunge by another 634 points, or 5.6%. However, the next day it rebounded by 429 points or 3.9%. On Wednesday it fell again by 519 points, or 4.6%. And yesterday, it was up again by 423 points or 3.9%. It’s almost amusing to watch. Except that there is something more than unsettling about a complicated financial system that takes serious note of a change in the interest rate on a 10-year US treasury bond of as little as a few basis points (that’s hundredths of a percent) while the nation’s entire stock portfolio can rise or fall four or five percentage points in a single day. Who came up with this stuff? How did the global economy become so entangled with financial forces that are now beyond the understanding of those seeking to control them? I suspect there are quite a number of world leaders who are not sleeping well.

Creedence Clearwater Revival wars that there’s a “Bad Moon Rising.

 

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Updated: February 13, 2019 — 1:00 PM

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