Stocks, which only recently were hitting a new record practically every other day, suddenly seem to be in free fall. Or at least on a very wild ride.
Global stock markets plunged on Feb. 5, continuing the already precipitous decline from the week before. The Dow Jones industrial average, one of the most widely followed indexes, fell by almost 1,200 points, a 4.6 percent loss and the biggest point decline on record. Put another way, the world’s 500 richest people lost about US$114 billion in a single day.
Since the Dow’s record peak of 26,617 on Jan. 26, the index has fallen almost 9 percent. This brings it close to what is known as a “correction,” which is often described as a fall of 10 percent. Corrections are simply a large enough fall in stock prices to get some people to believe the market’s upward trajectory has stopped. We’ll be in a “bear” market if losses reach 20 percent.
After this quote, the rest of the article denies the HUGE impact that the last stock market crash in 2006 had on the global economy and the HUGE losses suffered by many average Americans, home owners and retirement funds. It also completely ignores the negative impact that the stock market crash had on the economy in the 1930’s, where the entire economy of the US stopped for several years, during the ‘Great Depression’.