Investors perplexed by the market's anxiety over slower global economic growth should look no farther than the Baltic Dry Index, a closely watched measure of worldwide industrial demand that has fallen a whopping 50% since May.
President Obama's $2 billion booster shot for solar is surely good news for the green energy sector. But it may not be enough to counter the drag of a global economic stall that many see coming. Because when other energy prices fall, solar investment tends to dry up.
Many high-profile U.S. lawmakers and economists stridently advocate trade sanctions to pressure China into raising the value of the yuan. But such threats would likely only backfire -- with extremely dangerous fallout.
China's central government is fighting hard to put the brakes on its white-hot real estate market before a catastrophic bust hits. But Beijing's efforts to check speculation are failing because of who is busy fueling it: China's local governments.
Contrary to jittery investors' fears, the euro is likely to survive. But its slide in value amid the eurozone's current debt crises points to a big danger: The actions Europe is likely to take to solve those debt problems may induce another continent-wide recession.
The Fed's surprise move to raise its discount rate is just the latest event that unnerved investors. But a closer look at what's happening in the U.S., China and Europe suggests that after years of economic crisis, things are starting to work the way they're supposed to again.
Here's hoping traders return from their long weekend too relaxed, refreshed or hungover to make any sudden moves. Heaven knows the equity markets have been volatile enough lately. And with sovereign-debt fears likely to weigh on traders' minds in the days ahead, don't be surprised if the market keeps trembling.
"Stocks fluctuate" is the old saw, and Friday's market action was a case in point. After dropping as much as 160 points, the Dow closed down 45. Also, while it may have felt worse, stocks posted gains for the week, snapping a string of four losing weeks in a row.
In China, the problem is an economy that could be overstimulated. In Europe, it's an economy that could be falling back to sleep.














