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?

One Day after Greenspan said Possible Recession!

Greespan spooked the Chinese market and it affected ours! He said there would be a possibility of a recession later in this year. Here's the closing figures for our Stock Market for today:

Dow 12216.24 -416.02 (-3.29%)
Nasdaq 2407.87 -96.65 (-3.86%)
S&P 500 1399.05 -50.32 (-3.47%)
10-Yr Bond 0.451% -0.12

That's quite a scare! 416 points in one day.

Here's more form the AP:

World markets fall after plunge in China
Chinese stocks plunged nearly 9 percent Tuesday, their biggest drop in a decade, rattling markets from Hong Kong to Singapore and as far away as New York amid fears of a slowdown in China's economy.

Investors were also spooked by comments Monday from former Federal Reserve Chairman Alan Greenspan, who said a recession in the U.S. was "possible" later this year.

One day after sending Shanghai's benchmark index to a record, investors dumped stocks to lock in profits amid speculation about a fresh round of austerity measures from Beijing to slow the nation's sizzling economy. The Shanghai Composite Index tumbled 8.8 percent to close at 2.771.79, its largest decline since it fell 8.9 percent on Feb. 18, 1997, at the time of the death of Communist Party elder Deng Xiaoping.

Meanwhile, the price of oil fell on speculation that a slowing Chinese economy would slice into demand for fuel. A barrel of light, sweet crude was down 56 cents $60.83 in premarket trading on the New York Mercantile Exchange.

"The (rumors) that China is going to impose a capital gains tax resulted in regional markets falling," said S. Sharath, an analyst with MIDF-Amanah Investment Bank in Kuala Lumpur, Malaysia, where the benchmark index tumbled 2.8 percent.

But Greenspan's comments also took a heavy toll on Asian markets.

"Our economy is also dependent on the U.S. economy, if there is adverse news, exports from our country is going to drop," Sharath said.

In Hong Kong, the benchmark Hang Seng Index tumbled 1.8 percent, while Singapore's Straits Times index sank 2.3 percent. Markets in Japan and Taiwan, however, registered only modest declines.

The plunge spilled over to New York, where the Dow Jones industrials were down 210 points, or 1.66 percent. In London, the FTSE-100 dropped 2.31 percent, France's CAC 40 dropped 3.02 percent and Germany's DAX lost 2.96 percent.

Major Latin American markets were sharply lower around midday. In Brazil, Sao Paulo's Bovespa index was off 4.1 percent, Mexico City's IPC index shed 3.4 percent, the IPSA index in Santiago, Chile was down 3.8 percent, while in Buenos Aires, Argentina, the Merval dropped 5 percent.

Funny that Bernanke is in charge now but Greenspan seems to be the last word