1. By executing 47 people with swords and other means Saudi Arabia not only freaked out Iran they freaked out the world with the barbarity of this action.
2. China has no useful "Feedback loops" to correct the problems it is now facing. China is monolithic in other words so "Top Down" it is completely unprepared to deal with the kinds of problems success has generated so they are acting very "3rd World" instead of the number 2 generator of economic success on earth.
How are they acting "3rd world"?
By devaluing the Chinese Currency over and over again they cannot hope to have the Chinese currency be a world standard. By letting the stock market go all over the place and not keeping it in line through governmental safety measures.
So, because of all these factors and more and because Saudi Arabia has basically declared war economically on all oil producers worldwide including the U.S., Canada, Russia, And every other oil producer on earth, it is causing almost every oil driller and shale oil miner to go bankrupt worldwide one by one.
All these things and more are freaking out world markets like I haven't seen since 2009 during the Great Recession. Will the U.S. market recover?
It likely depends a lot on all world markets. Because even our blue chip stocks do business all over the world to a greater or lesser degree. So, Americans invested in Blue Chip Stocks that do business all over the world are going to be affected. One thought is that "just the panic" and not the fundamentals could take the market panic wise down to 12,000 or 13,000 before it comes up again.
Or if the panic subsides some we could rise again to 17,000 or 18,000 within a month or two. It all depends how panicked investors are worldwide? It also depends upon how people planned for this outcome worldwide? It is possible if too many people overextended it could go down to 12,000 or 13,000 before it recovers back up to 17,000 or 18,000 once again. However, worldwide many of those that didn't plan for all this (those that didn't put enough into cash to survive) are likely going to go bankrupt within a year or two and this likely could affect world markets too.
begin quote from Yahoo finance:
Fri, Jan 15, 2016, 8:36pm EST - US Markets are closed
Yahoo Finance
Why the heck are the markets tanking?
The Dow has lost over 1,400 points so far in the first 10 trading days of 2016, marking the worst two-week start to a year ever.
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