Stocks gone wild: Why are investors so panicked?

Stay panicked my friends.

Bluewaters2u's Blog

Panic exchange wall street

Traders gather at the post of specialist Patrick Murphy, right, on the floor of the New York Stock Exchange on Monday. Traders in the U.S. dumped stocks, bonds and commodities, prompted by signs of distress in China’s economy and worries about the end of the Federal Reserve bank’s easy money policies.

The Federal Reserve thinks the economy is improving, so much so that it has hinted it may throttle back a bit on easy money policies in place since the financial crisis. So why are the financial markets acting like the sky is falling?

Stock markets have been in turmoil since Fed chairman Ben Bernanke last week suggested that if the economy continues to perk up the central bank will remove a least some of the low interest rate punch bowls that banks and businesses have been drinking from for years. And while part of Monday’s stock drop could be…

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