It all started in China, when a revised index scared investors around the globe that one of the economic powerhouses could slow. Then everyone remembered the European debt crisis, and by the time the bell rang in New York, the Dow was below 10,000. By the end of the day it was at 9870.30, down 268.22 points and 2.7%, its largest one day decline since June 4th.

All the big tech companies were down, Microsoft, Apple, and Amazon. Investors are unsure whether recovery will continue or we’re in for a double dip. Moving away from risk and volatility, bond markets surged, and the yield on Treasurys dropped below 3% for the first time since April 2009. Deflation remains a worry for many, as summer means slowing trade.

Many economists, including those in the Obama administration, are pushing for continued stimulus in order not to fall into a depression of low consumer spending and high unemployment rates. But European countries, already strapped, prefer just the opposite, following Germany’s austerity measures. Depression looks to be closer than everyone thought, as Bill Boehner, Speaker of the House hopeful, advocates a retirement age of 70, and major cuts in Social Security, which might not be a bad thing. Hopefully, it’s just the nervous nellies.