We don’t need Ebola to explain sinking stock prices. It is amazing the market has lasted as long as it has.
I often wonder if those who read the news even believe what they’re saying.
ABC Radio News yesterday talked about the plummeting stock market, and they identified the reason for this week’s collapse.
No, they didn’t talk about a runaway Congress which has stolen more taxpayer money than ever this year—while still running a half-a-trillion dollar deficit. No, they didn’t blame the profligacy of the Federal Reserve, which has flooded the markets with counterfeit digits, just to keep things elevated, and which finds itself now levered more than seventy to one.
Nope, that would be to blame the elite who have driven the car over the cliff.
Why are the markets collapsing? Ebola fears. Here’s a typical piece of spin: “Ebola is spooking Wall Street.”
The Ebola epidemic is starting to contaminate sentiment on Wall Street, which is already losing sleep over countless crises.
The arrival of Ebola in the U.S. has coincided with a period of extreme turbulence in the stock market, which has tumbled about 8% from record highs.
The deadly virus is clearly not the only factor behind the market slide, but it’s a major unknown that is increasingly weighing on market psychology. That was the case again on Wednesday as the Dow plummeted as much as 370 points and health officials revealed a second health-care worker in Dallas tested positive for Ebola.
Ebola fears are most obvious in the airline sector. Shares of American Airlines Group and Delta Air Lines fell sharply on Wednesday, hurt by the news that the new Ebola patient flew the day before being diagnosed. Both airlines are down nearly 20% over the past month alone.
“The fear is that people will be afraid to fly,” said Jason Weisberg, managing director at Seaport Securities.
Uh huh, Ebola. You know, that “non-problem” that the White House has “completely under control”… yeah, that Ebola. The only thing it apparently threatens is the stock market.
And if you believe that, I have some really promising stocks to sell you.