A Stephens Media article today quotes a variety of people who see little fallout from yesterday’s Wall Street debacle in Arkansas. Stephens Inc. is apparently sound, yes. But if the commenters think every bank operating in Arkansas is in blue-ribbon financial condition, they haven’t been reading the newspapers. And if they think a 500-point drop of the Dow has no impact in Arkansas, they must not have an IRA, 401K or other investments. The only thing unaffected by yesterday’s news was money buried in a can in your backyard — and it’s worth less because of creeping inflation.
It is a global economy. We are all in this together. If you doubt me, check today’s Arkansas Democrat-Gazette. It would otherwise be reflecting the implosion of the newspaper industry with a puny eight-page classified ad section today. But, good news for publisher Hussman, the section was swollen by the inclusion of some nine pages of mortgage foreclosure legal ads. Tell me there’s no fallout in Arkansas.
UPDATE: The Fed won’t lower interest rates again. Market can take care of itself.