What the heck is going on with the stock market?!?
The DOWs down 2.5% (almost 300 pts) as we speak, though it's coming back a bit (I said a half-hour ago this was an overcorrection -- shoulda put in a call option!).
I get it -- kind of. The economy's lousy, the political system is too, the European debt crisis is dragging on if not deepening (I'm doing my part to help by eating a Greek yogurt as we speak), and the debt deal apparently hasn't pleased anyone.
But all of this was known, except for the latter--and the threat of default is behind us now, at least for awhile. Maybe investors are reading stuff like this (a proposal to make the "dollar of debt ceiling for a dollar of cuts" the new standard) and getting nervous that political dysfunction is now enshrined in the system.
Equity markets didn't like the jobless claims report, because, hey: who knew the job market was stalled??!
Sorry -- don't mean to get so dyspeptic. It's not unusual for the market to be manically depressive and psychotraumatically challenged at a time like this. But we really need some good news. And that may not happen until we get some good policy, a whole lot better than what's been coming out of this town of late.
Update: Um...did I say "call"...I meant "put"-DJIA falling again, down over 400 pts, 2:30.
DJIA, circa 12:45pm (Source: Bloomberg)
This post originally appeared at Jared Bernstein's On The Economy blog.
First of all, we tried that with the stimulus, remember? How'd it work, Einsteins? Also, by definition those jobs would be temporary.
Secondly, what about the 80% + of the unemployed who are not in the "infrastructure" business (like me!)?
Market is tanking again.
When the Dow starts to creep above 10,000, i get real nervous, coz bad things are coming. Stock investors are sheep who predictably foillow the herd instinct like lemmings over the cliff, often with extremely unfortunate consequences.
It certainly appears that no sustainable lessons have been learnt from the recession, and most just want more of the same. Be careful what you wish for!
That's not how a sane person should think, but I just don't care....I don't have any money in the stock market or any other market except for the small bank I do business with in this burg.
No one is going to bring charges, ever, against the BANKSTERS. No one is going to hold them accountable of their casino trading funds. They just give themselves more and more in salaries, bonuses and tax dodges. They are not loaning money, and no one has really regulated them and they are back to their old way of "too big to fail"
Corporations are either just sitting on their piles of gold or investing overseas for slave labor. Then they use those tax free dollars in off shore banks so not to pay a dime of taxes.
Republicans are daring anyone to raise taxes on their chosen few or to stop the corporate welfare of subs tidies for record profit companies, instead of helping the middle class and working poor.
Let it all go, and maybe we can pick through the ashes and rebuild this country into something besides the "trickle down" we've lived through for 30 years of failure/
That would be CHANGE I could believe in.
F&F
I just get so tired of the politics and power grabbers and these insane anarchists that some actually voted for, or not !
For example, put the top tax bracket back to Clinton rates, a mere 3% hike. Take that $700 billion in revenue and earmark it for $700 billion in infratsructure projects. That's millions of jobs created, good paying job. That's more tax revenues from pay checks. That's a giant drop in unemployment. That's a giant infuse of cash into local economies.
Again, this isn't rocket science.
Second, the bulk of what was left went to local and state governments to keep the basic systems (cops, firefighters,teachers) afloat, which it did.
Finally, I suggested repealing the insane Bush tax cuts that were supposed to be temporary, remember?
Bottom line is anyway you cut it, the problem is 80% of all the wealth over the last 10 years has gone to the upper 1/2 of 1%. The middle class has been crushed, the poor are now beyond help....and the top 400 tax payers own more wealth then the bottom 150,000,000 Americans.
So since businesses clearly are sitting on their trillion in profits with no reason to grow or hire, and the Middle Class can't spend because they are either broke or way too scared of losing their jobs tomorrow, that leaves government.
Repeal the Bush tax cuts on the wealthy, which won't hurt them one bit and won't effect 99% of Americans, and earmark that $700 billion for infrastructure jobs. Did you know there are more than $800billion in water works infrastructure jobs alone stalled because there's no funding?
The problem with ideologs like yourself is that you aren't interested in solutions, just honoring your ideology. If a cure for cancer required a modest tax, you'd vote no. That's the danger of a cult like modern day conservatism.
Money baggers want the Treasury to pay higher interest rates because their names are on the checks and the negative real interest on 5-year TIPS is just unacceptable. Also, every business that goes out of business has a going out of business sale. Instead of buying up Borders' shelves and light fixtures, the big fish on Wall Street are buying up shares. Money baggers like recessions just fine and they just engineered a double dip.
F&F
Until our Governments (from around the world) gets it's collective acts together...things will keep wobbling.
It used to be...but when selloffs are determined in milliseconds by mutual fund algorithms...not so much anymore. It's nothing but a big slot machine.
Even though he promised he wouldn't.
Oh yeah, and he passed health care reform based on Republican ideas. Health care reform, if you might realize has been stated as a crucial need by every President for decades.
Thanks for playing though.
What is going on? Simple - there is NO demand in the private sector and the little the Government can do has been taken away, what is left is a flat economy at best. The 'glorious' debt ceiling bill will cost thousands of jobs and take about 1.5% out of the GDP.