Taking a Plunge

Sea of Red: What's Going on With Stocks

    America's economy is highly influenced by those of other world superpowers,  such as China. As the Chinese economy seems to be rapidly and dangerously slowing down, slower than their government suggests, American stocks are not looking their best. According to these reports, The Dow dropped over 1,000 points this past week. I don't have to understand exactly what that means to know that it is definitely not good. That drop makes this past week the worst week in the stock market since 2011. There is no apparent sign of anything getting better anytime soon, because this has led to some pretty dramatic worldwide effects that can't easily be reversed. This is all happening because China's manufacturing activity. It is said to have gone down to its lowest point in 77 months, which sounds pretty scary to me. This must mean that they are not getting the imports they need or they don't have enough jobs to get the work done. This ultimately leads to a slowed down global economy because now America and other trade partners with China aren't getting the imports they usually get from the superpower. Something that will definitely be looked at is China's imports, because that is a key factor in other countries being able to determine China's trade dependability.
    This, paired with cheap oil, at its lowest point in six years, is not doing too many good things for the U.S. economy or the world economy. This is all causing worldwide problems that make it extremely difficult to find one simple solution that fixes it all. The good found in all of this negativity and loss is that the U.S. stock index had actually reached a record high earlier this year that offered a little cushion for this plunge. It makes it just a little more bearable, though still very bad. A humble correction would definitely do no harm, but at least its not as bad as it could be.
  America will continue to carry on for now, in hopes that there is a way to help China get back to where it was. This is a little scary for American stocks, but I hope that people don't loose hope because of it. The stocks change all the time and go up and down with extreme unpredictability. We depend on other countries for a lot of things, so we can't be too surprised and freaked out when things like this happen. All we can do is search for solutions and ride it out.