The Market Drops

Our analysts have just come back from their research rooms and provided a report of high importance. The market dropping last week, caused by computer glitch, is just one indication of why nothing is certain in the American economy. The view that the market reacted in an exxagerated way to the drop in the Chinese bourse is to some extent inaccurate. China is a big deal in economic terms. It holds a lot of clout over the American economy, and last week was just one example of why it does.

We will remind you that China's relevance to the America economy is deeper than just the cause and effect relationship that we all witnessed last week.


Recall the fact that America is in debt to China, and in a great degree as well. The whole article is here, but an excerpt is below:

In the meantime, Asian countries are accumulating hundreds of billions in dollar assets, making them America’s bankers. Industrially developed countries such as Japan, Taiwan, and South Korea have little need to use the dollars that they earn from their trade surpluses with the U.S. to import American capital goods to fuel their further development. They use the dollars that we pay them for their goods to purchase U.S. government bonds and American companies, real estate, and corporate bonds.

As for those that might have been in debt, and held on to their stocks...well, you should have sold them the minute you wanted to get out of debt to help yourself.

Knowing yourself includes knowing what you should keep and not keep. If you are in debt, sell your stocks and get some cash to pay off the debt.

Hopefully, there will be new investment opportunities available for you once you are out of debt.