Wow! For those who weren’t watching the news, the Dow Jones had its biggest single day drop since September 11, 2001: from 12,631 points to 12,216 — a 415 point drop. In fact, it dropped a whopping 200 points during one single minute around 3PM ET! (For those who might enjoy a jargon-laced discussion of the event, you can read the Market Watch article.)
What prompted the drop? A sell-off in China influenced by fears that the Chinese economy might be slowing. The Chinese government is meeting soon on such things, and there is concern that officials might try to purposefully slow the economy, which up to now has been essentially full steam ahead.
Welcome to the global economy! It has been dubbed (though perhaps not permanently) the Shanghai slide. Having ridden the wave for some time, apparently many felt (as many others may feel over the days to come) that it was time to take some profits and “git while the gittin’s good.” May God have mercy on the U.S. when investors decide they no longer feel like investing! It’s hard to prop up an economy when the “proppers” go AWOL.
Will things get worse or better? Or is this simply a correction to a more “realistic” level? Time will tell. On one hand, the Titanic that is the U.S. economy can’t continue to avoid the fatal iceberg forever, yet at the same time there is still a mission to preach the gospel of the Kingdom of God to all the nations as a witness before the end (Matthew 24:14), and currently that work is significantly (but notably not exclusively) funded by US dollars. (Don’t expect me to hand God a script and expect Him to read His lines! He will be true to His prophetic word, but the details of that fulfillment are often astonishing and surprising!)
One thing that seemed odd to me was that even gold and gold-related indices took a big hit. Although in another Market Watch article, Myra P. Saefong mentions that such a drop is not unusual at the beginning of such an “asset selling frenzy” and that, eventually, the metal could be expected to benefit.
I will freely admit that I wouldn’t mind investing in a bit of gold these days (and as soon as I find some money I might do that!). After all, “A prudent man foresees evil and hides himself, but the simple pass on and are punished” (Proverbs 22:3 & 27:12). Though we must also remember that a day is coming when “[t]hey will throw their silver into the streets, and their gold will be like refuse; their silver and their gold will not be able to deliver them in the day of the wrath of the LORD…” (Ezekiel 7:19). And it won’t be the Shanghai slide that causes such financial calamity, but the sins of an obstinate and unrepentant people.