More on the Market from McClatchy

And part of the leadoff of Kevin Hall's McClatchy article:

A steady stream of recent data shows mixed signals about where the U.S. economy is headed. The old sage himself, Alan Greenspan, suggests recession could be looming.

When Greespan speaks, the World listens!

Here's some more of Hall's article:

Fasten your seat belts - some economic chop could be coming.

The Dow Jones industrial index fell more than 416 points, or 3.29 percent, in trading Tuesday. The tech-heavy Nasdaq composite was off by 3.86 percent, and the S&P 500 was off by 3.47 percent. It was the largest one-day drop for markets since Sept. 17, 2001, the first day trading resumed after the Sept. 11 terror attacks


Tuesday's drops mirrored a global decline in stock markets as the investor mood turned bearish. Investors, who have been murmuring about a coming "correction" for weeks, are concerned that the U.S. and Chinese economies may be entering a period of cooling.


The drop underscores how connected the U.S. economy is now with the broader global economy. U.S. exchanges sank following a nearly 9 percent drop Tuesday on China's Shanghai Composite Index. It was the Shanghai's biggest one-day drop in a decade, and investors worried that interest rates may soon rise to douse China's sizzling economic growth.


Higher lending rates in China matter to average Americans. Most large American corporations either manufacture there or purchase from Chinese contract manufacturers. Higher lending rates in China would slow economic activity there and raise the cost of doing business. The costs could be passed back to Americans as pricier imported goods.


Adding to the economic uncertainty, oil prices are climbing again, due in part to the Bush administration's escalating war of words with Iran. Just weeks ago, some analysts projected a return to $40-a-barrel oil, but it now trades around $60 a barrel. AAA reports that unleaded gasoline averaged $2.37 a gallon nationwide on Tuesday, compared with $2.14 a month ago.

My question is: when you cut out the middle class, won't this hurt the economy of the US as well as the world?