As stock markets around the globe drop, the price of the corresponding stocks drop which creates a tidal wave of lower spending by consumers who feel like they have less money to spend due to their brokerage accounts are not worth as much. Like myself in APWR today, all the stock owners who lost 5% today are going to have 5% less to spend in ”’feel good”’ buying power. I define ”’feel good” buying power as the feeling of your spending values due to your net income or your housing value or your job earnings vs what you really need to buy.

Anything in the ”’big ticket”’ item for me in last few weeks ((APWR is down 40% in last 2 weeks)), is going to have to wait now given my ”feel good”’ buying power has been crushed. And, its not just me, its everyone that owned stocks today which got baked for 5% globally. If this global sell off continues, the world will come to a reeling halt like it did from Nov2008 to March2009. What changed the turn then was government spending stimulus plans which stopped the freefall of equities.

Sadly, if the governments do NOT step up again and prop up values for international loans, the rumors of Portugal and Spain will spread to little countries and pretty soon, you will have an ole fashion blood bath like today where most markets lost 5% of all values.

Nobody cared about Cisco best earnings in history of company and forward guidance and great balance sheet and wonderful spending guidance and hiring……………nope, they were just selling everything. When 7 of S&P 500 stocks were green and the other 493 were RED, I rest my case. A few trillion were lost in ”’feel good buying power” today alone.