BloggeRhythms

The Dow Jones Industrial Average lost 191 points yesterday, the almost 2% percent drop occurring after China’s regulator said its suspended a circuit-breaker rule that shut the nation’s exchanges twice already this week. China’s stocks plunged 7 percent after the central bank cut the yuan’s reference rate by the most since August. 

In that regard, Matt Clinch @cnbc.com, writes about billionaire financier George Soros who is now warning of an impending financial markets crisis. 

“Speaking an economic forum in Sri Lanka's capital Colombo, he told an audience that China is struggling to find a new growth model and its currency devaluation is transferring problems to the rest of the world, according to media. He added that a return to rising interest rates was proving difficult for the developing world.” 

With global currency, stock and commodity markets under fire in the first week of the new year, almost $2.5 trillion was lost in the value of global equities to date in 2016.

What’s most interesting about the situation, is that so many people, including experts at every level of investment, and particularly those  dealing in equity’s are expressing shock and surprise regarding what’s happened. Yet, the financial calamity really shouldn’t be confusing to any investor who has even a basic understanding of risk. 

While not involved in security’s of any kind, my own career involved the financing and leasing of equipment, used in all types of businesses all over the nation. And rule number one was to never finance any organization of any type, without fully understanding what the business does specifically, who management is, the business plan for the future, and why the equipment was presently needed. And most importantly, precisely how the acquisition would be paid for as demonstrated by financial history, along with bank and other lender references.

In the case of China’s market collapse, those investors taken by surprise and losing heavily are in basically similar positions to any other kind of frivolous lender. And if all they’ve done is ride along a rising market tide, the losses now faced are well-deserved. Because, evidently they did nothing to educate themselves, evaluate probabilities or monitor the funds at risk, although China itself has been projecting slower growth and downturns for quite some time now.

Which confirms PT Barnum’s phrase:  "There's a sucker born every minute"   

In a surprising, but politically adroit step, top Democrats including party Chairwoman Debbie Wasserman Schultz are now joining in. Urging the administration to act “immediately” to penalize Tehran, according to FoxNews.com. 

Schultz and six other House Democrats, wrote in a letter Wednesday to the POTUS: “The United States and our allies must take immediate, punitive action and send a clear message to Iran that violating international laws, treaties, and agreements will have serious consequences.”

Urging the administration to act on the sanctions “without further delay” and issuing a stark warning about the risk of holding back in light of the nuclear deal, they wrote: “Inaction from the United States would send the misguided message that, in the wake of the [nuclear deal], the international community has lost the willingness to hold the Iranian regime accountable for its support for terrorism and other offensive actions throughout the region.” 

So, what we have here is clear evidence that even the most ardent POTUS supporters certainly realize what a horrendous mistake the nuclear deal is. And although their party loyalty is generally unshakable, those same consistently pandering loyalists to the POTUS, Kerry and Valerie Jarrett are very aware that this deal will cost them dearly next November in elections nationwide.    

Which brings us to today’s update on Bill Clinton’s wife.

This morning, Rush questioned Bill’s wife campaign message by asking: “Why is Mrs. Clinton, as her campaign says, trying to fix what's broken?  How is anything broken?  The Democrats have had seven years now, into our eighth year of doing exactly what they want to do.  Why isn't she running around promising to continue this?  Remember George H. W. Bush, when he ran in 1988 promised the Reagan years were so great that his campaign was, "My presidency will be the third Reagan term."  Well, why isn't Mrs. Clinton saying that? Why is she running around promising to fix this, the economy's broken.  How can it be broken?  What tragedy?  I'll tell you, these people are so convoluted and deluded and deranged, it's dangerous.”

While Rush’s point is well-taken regarding the incoherency of Bill’s wife’s message, most of what she says is confusing, inaccurate or simply untrue. Which may be why, according to FoxNews.com: “Vice President Joe Biden says he regrets not running for president "every day" but that he made the right decision for himself and his family.”

The Vice President then went on to “tell television station WVIT in Connecticut that he plans to stay "deeply involved" in the campaign. Possibly indicating that he’s still around, should things turn far worse for Bill’ wife. Leading to the continuing question: Mayor Bloomberg, Jerry Brown, and Starbuck’s chairman and CEO, Howard Schultz, are you guys reading this?  

That’s it for today folks.    

Adios