<p>We are all screwed.</p>
<p>Don’t know about you but my portfolio was up 25% today, due to AAPL calls :)</p>
<p>Eh, but what effect does this have on most people? I understand that it means the rich are likely making less money, but, frankly, I’m cool with that.</p>
<p>People’s investments lose value because the market drops, so everyone overall has less money.</p>
<p>Interest rates may rise too, as the US needs to attract more investors due to their demotion in debt rating (AAA->AA+).</p>
<p>^ and, in turn, the cost of our debt will increase, which will lead to - atleast I think - higher taxes.</p>
<p>
Everyone who owns stock in the market?</p>
<p>
Yeah, but taxes are unreasonably low for the rich anyway, so this could be a good thing.</p>
<p>Screwed…</p>
<p>DolorousEdd, lots not-“rich” of people own 401k retirement plans which look to furthur decrease in value. Also, when so many stocks are sold, companies have to make up the void created by this by drawing on their reserves. This is money that would have gone to R&D, job creation, employee benefits. This is a lose-lose for everyone, not just the rich.</p>
<p>Also, I don’t know how bad it is for the super-rich (aka millionaires/billionaires), but upper class income makers (above $250,000) apparently have a hard time because of steep income taxes. There was an article on MSN Financial a while ago, which is what I’m referencing.</p>
<p>JB</p>
<p>Eh, the more unstable the system becomes, the more likely it is to collapse or be changed, which stands as a negative mainly just for the rich, since they’re the ones on top of the system that is threatened.</p>
<p>IMO, that’s an incorrect assumption. Remember what happened in the Great Depression? When the rich lose money, people are laid off. Lose-lose for all.</p>
<p>JB</p>
<p>
</p>
<p>Er…anyone who lives in or depend on the USA has a stake in this. I’ll take some rich, corporate a-hole over the possibly horrific alternatives.</p>
<p>
Yeah, and had a series of events (New Deal, World War II) not occurred to alleviate the situation, the system would have collapsed.</p>
<p>
Like what?</p>
<p>^and that would have been soooo much better.</p>
<p>
Might have been. Might not have been. Who knows.</p>
<p>
</p>
<p>Like any among a plethora of possible futures where things are overall worse for me than they are now.</p>
<p>As much as I hate Donald Trump, I agree with him that we gotta start pressuring China in the same way that they’ve been screwing us over.</p>
<p>I highly doubt this trend will continue. Did the S&P Downgrade really make companies like apple worth 6% less? No. Oil is declining, which should rally stocks, and corporate earnings are fine. Right now I’d buy blue chips and high yielding stocks.</p>
<p>DolorousEdd, what was your whole point about the New Deal/WWII? Still doesn’t change the fact it’s a lose-lose.</p>
<p>Anyways, it looks like this market slide is just some buyer’s uncertainty coming into play… so I’m not too worried.</p>
<p>JB</p>
<p>DolorousEdd are you BillyMc?</p>
<p>The S&P had little to do with the drop, it does create concern with the American investors, but the drop was consistent globally.</p>
<p>Many countries’ indexes dropped around 3-4%. Most of it due to Asian unrest in the markets and European national debts.</p>
<p>Yes, it may not seem much and you may think it is just because buyer caution, but it is pretty serious. It all keeps adding to what we’ve been going through for four years. I know my parents’ investments have been hit hard, which usually isn’t the case. So I’m sure a lot of people are feeling it.</p>
<p>No no, the S&P credit downgrade tanked buyer security which in led investors to buy more stable assets, like bonds, currency, and minerals. Basically because of the credit downgrade, investors took money out of Asia, Europe, everywhere basically and holed it up in stuff like gold (which has just topped $1700 an ounce, I think).</p>
<p>JB</p>