The Dow Jones tried to rally from a gut-wrenching drop of 1,000 points at the Monday opening but still ended Tuesday with a loss of 205 points in keeping with Donald Trump’s prediction of a China-induced mess. He had also predicted his dominance of the Republican race and is currently true to form with his 35 percent over second-placer John Kasich at 11 percent in the Public Policy Polling of New Hampshire.
Meanwhile, at the other side of the fence, Bernie Sanders, flush with 42 percent of the New Hampshire Democratic primary vote over Hillary Clinton’s 35 percent, expressed his own opinion of the Wall Street situation. He blamed unfettered free trade for the worst Dow Jones meltdown since 2008.
According to CNN Money, Trump expressed his sympathy Monday for investors trying to shore up what they can in the market storm. He advised them not to sell, because a crashing market tends to surge back, thus minimizing losses for those who wait it out.
“You’re better off holding. I’d hate to see it come back, and they end up with the short end of both deals.”
For his part, Socialist Senator Sanders continues to push for the long overdue restructuring of Wall Street. His supporters are organizing a Facebook-driven march on Washington around October 17 to endorse his candidacy with the theme of “enough is enough.”
According to a Yahoo News analysis, the Dow Jones Industrial Average went up 441 points from its closing figure on Monday, but the drastic sell-off in the final hour of trading Tuesday dropped the index down some 205 points. At the final count, the total swing exceeded a hefty 660 points.
The expectation for Tuesday was a bounce because of the excessive losses on all three U.S. equity markets going into correction territory. Their decline of 10 percent from their high was unheard of since 2011.
Hopes were also raised by the slashing of interest rates by China’s central bank. The Chinese action was to ease the pressure on financial markets and prop economic growth figures with a flood of cheap money. But no significant rebound happened.
According to CNN, Donald Trump regards China as an economic fiasco for the U.S., not only because Chinese policy takes American jobs, but also because it allows currency manipulation. He tweeted the following.
“As I have long stated, we are so tied in with China and Asia that their markets are now taking the U.S. market down. Get smart U.S.A…. Markets are crashing – all caused by poor planning and allowing China and Asia to dictate the agenda. This could be very messy! Vote Trump.”
The urgency of his call to stop illegal immigration, bring jobs back to the U.S., and do damage control on the Dow Jones coincides with his poll numbers going up.
[Photo by Win McNamee/Getty Images]