The stock market bubble that has been blown up since the second great bank depression of 2008 is popping.
A decade of zero percent interest from the Fed and lax financial regulations is coming to a head now that rates are rising. Corporations who leveraged themselves to the hilt at the trough of interest free federal reserve money are now seeing the bill come due.
Had the Obama administration fixed the systemic flaws in our financial system, we wouldn’t be in dire straights now. The banks were never properly regulated or held accountable for their bad actions leading up to 2008.
Now the same toxic derivatives, credit default swaps, and asset backed securities that led to the 2008 meltdown are rearing their head again. Brace yourself people. If you have money in the market, you may want to pull it out and seek shelter in fixed income for your retirement accounts or cash
U.S. stocks plunged on Monday in their worst Christmas Eve trading ever, as the S&P 500 entered a bear market.