Falling Stock Markets? Blame China.

For indispensable reporting on the coronavirus crisis, the election, and more, subscribe to the Mother Jones Daily newsletter.


Over at Wonkblog, Ylan Mui writes about the plummeting stock market:

Is this the beginning of “Rate Rage”?

You could be forgiven for thinking so, judging by all the blame that’s been heaped on the Federal Reserve for the selloff in stock markets over the past three days. The blue-chip Dow Jones Industrial Average has plunged 500 points, and the broader Standard & Poor’s 500-stock index erased its gains for the year. Markets Friday morning were already beginning to edge down.

We must read wildly different stuff. I haven’t noticed anyone blaming the Fed for falling stock markets. The headlines have all been like this one in the Wall Street Journal: markets are dropping because investors are afraid that China is about to go belly up. As Mui points out, the Fed’s actions have been widely anticipated, and the timing of the market drop doesn’t really match up with anything new from the Fed anyway. It does match up with investors finally getting nervous after weeks of increasingly bad news from China.

In any case, this is yet another reason the Fed might want to rethink a rate rise later this year. The global economy is not looking especially robust at the moment, with Europe barely growing and China possibly entering a serious slowdown. We don’t really need to add to these problems.

DOES IT FEEL LIKE POLITICS IS AT A BREAKING POINT?

Headshot of Editor in Chief of Mother Jones, Clara Jeffery

It sure feels that way to me, and here at Mother Jones, we’ve been thinking a lot about what journalism needs to do differently, and how we can have the biggest impact.

We kept coming back to one word: corruption. Democracy and the rule of law being undermined by those with wealth and power for their own gain. So we're launching an ambitious Mother Jones Corruption Project to do deep, time-intensive reporting on systemic corruption, and asking the MoJo community to help crowdfund it.

We aim to hire, build a team, and give them the time and space needed to understand how we got here and how we might get out. We want to dig into the forces and decisions that have allowed massive conflicts of interest, influence peddling, and win-at-all-costs politics to flourish.

It's unlike anything we've done, and we have seed funding to get started, but we're looking to raise $500,000 from readers by July when we'll be making key budgeting decisions—and the more resources we have by then, the deeper we can dig. If our plan sounds good to you, please help kickstart it with a tax-deductible donation today.

Thanks for reading—whether or not you can pitch in today, or ever, I'm glad you're with us.

Signed by Clara Jeffery

Clara Jeffery, Editor-in-Chief

payment methods

We Recommend

Latest