Gripped by fear of a new recession, the stock market suffered its worst day Thursday since the financial crisis in the fall of 2008. The Dow Jones industrial average fell more than 500 points, its ninth-steepest decline.The sell-off wiped out the Dow’s remaining gains for 2011. It put the Dow and broader stock indexes into what investors call a correction — down 10 percent from their highs in the spring.“We are continuing to be bombarded by worries about the global economy,” said Bill Stone, the chief investment strategist for PNC Financial.(AP)
For months the talking heads and pundits have been talking of a potential double dip recession, cable networks have yapped about the potential for a double dip. I had not heard the term before the heads on the cable channels kept using it over and over and over , like a bad song until it wakes me out of my sleep, double dip , double dip.
I have to confess I am not a Harvard MBA , but I believe in self fulfiling prophesy. The talking heads have finally talked us into another recession. There is admittedly over a trillion dollars in surplus funds available in the business sector, that could potentially hire a lot of new workers , this has not materialized despite indications that most major corporations are doing extremely well. Even companies like General Motors that recieved a hand up from the President have paid back the majority of what they were loaned, and are showing more than anticipated surpluses in their balance sheets . To GM’s credit they have been expanding and that means they are hiring more Americans.
The Banking sector is slightly different, there is something sinister going on here , not only are they not lending despite the record profits they are raking in , it seem there is a concerted effort to run out President Obama’s term in office. There is ample evidence to support the Administration’s arguments that we have seen the worst, yet despite all of those assurances, and having gotten past the Republican manufactured crisis of a debt ceiling gamesmanship, today there is the mammoth selloff of stocks.
Granted this is nothing new,and may not be attributable to any single indicator , it does gives reason for pause and introspection. Most major corporations in this country give money to both poliitical parties , with most giving the lion’s share to the republican party.The President campaigned on a platform of repealing the Bush tax cuts, he has kept that argument going throughout his presidency thus far. The republicans on the other hand have steadfastly refused to allow those tax-breaks to be rolled back to the Clinton years.
The rigid refusal of the tea party activists in the house of represantatives has literally prevented any debate for those roll backs to be done , make no mistake this would result in hundreds of billions of dollars in the treasury over a period of time,this money would come from people who do not need the tax breaks and should be asked to share in the sacrifice for the greater good. Republicans have steadfastly refused to allow any debate on the issue of repealing the Bush tax cuts, making the false arguments that there should be no taxation on anyone in a time of a recession when the economy needs to grow . This argument has just been turned on it’s head in light of this sell off , the super rich still have their billions, yet they are not hiring, and they are actually pulling their money from the market.
The question is , Is there a conspiracy to destroy the presidency of Obama irrespective of the cost to the country ? do not put this past them, many in the bussiness sector have publicly stated their disdain for the president and his policies , policies they characterize as socialist. Their understanding of socialism is policies that takes care of our sick and indigent, the elderly and making sure our children have schools to attend.
We will watch this and get back to you on this very important subject, our very existence may very well depend on it.
mike beckles:
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