It wasn't until about the 1980's that "regular joes" like us were encouraged to take charge of our own retirements by investing in 401k's and IRA's. Before that there was company pension and social security. What do you think the effect is when millions of people who didn't before start investing in the stock market? It goes up, that's what. So here we all are, dilligently investing our 10% every pay period....and every once in a while, when the market gets high enough, the uber rich do a big sell off. It happened when the Dow was up around 13K in 2008 and it just happened again. For those of us that have another 20 years to wait it out, we'll be OK. But it fucks over a lot of people who are near retirement or are currently living off their retirement assets.
And the thing that really sucks is that for investing for our retirement, what else are we going to do besides put our money in the market? My grandmother invested in CD's but back then interest rates were a lot higher, and she was able to ladder the CD's and make a good safe return. We do not have that option. If we don't invest in something that outpaces inflation, we actually lose purchasing power.
So, IMO, this latest market drop was just another selloff by the rich after us stupid average joes kept putting our money in like good little drones.