Echoes of '08

The article analyzes the significant stock market selloff that occurred last week, characterizing it as the fourth most substantial decline in the post-World War II era. It attributes this downturn to a confluence of factors, including rising inflation, increasing interest rates by the Federal Reserve, and the ongoing war in Ukraine, which has disrupted global supply chains and exacerbated inflationary pressures. The article emphasizes the Federal Reserve's aggressive monetary policy, specifically its commitment to raising interest rates to combat inflation, as a major catalyst for the market's decline. This policy shift has raised concerns among investors about a potential economic recession. The Ukraine war is also highlighted as a factor contributing to uncertainty and volatility in the market, adding to existing anxieties about inflation and economic growth. Furthermore, the article suggests that the selloff exposes the fragility of the financial system, which has been heavily reliant on low interest rates and government stimulus for years. The withdrawal of this support is now impacting asset valuations and creating significant instability. The piece also touches on the growing social inequality and the potential for social unrest as a result of the economic downturn, highlighting the impact of inflation on working-class families. In conclusion, the market's volatility is depicted as a symptom of deeper economic and geopolitical problems. find the original article here: https://www.wsws.org/en/articles/2025/04/07/lcxg-a07.html