Coronavirus Triggers Biggest Stock Market Fall Since the Crash of 2008
Flashpoints / 28 Feb 2020/
In the worst week since the Crash of 2008, the Dow Jones Industrial has lost 3,200 points. Wall Street suffered its worst one-day fall ever – with the Dow Jones Industrial Average plummeting 1,190 points on Thursday.
What makes this unlike other crashes is that this is in response to a natural disaster (coronavirus) that has no immediate fix. It is not something that will be changed by a pep-talk by some official. Also, there are many BBB bonds that are just above being classified as junk bonds. A reclassification of those companies may trigger sell-offs. The Federal reserve cannot come to the rescue. As this article says, printing more money cannot resume transport, trade or production.
Read in WSWS