Watching the major stock markets plunge this morning makes significant sense to me, because I haven’t been able to grasp why they’ve remained so high in the first place. And that’s because the U.S. economy’s been stagnant for quite some time now.
Block traders and other huge movers of funds, however, march to their own drummers, buying and selling for their very own reasons making investing little more than a daily crap-shoot for little guys like me in the markets. Nonetheless, even though my perspective’s quite narrow due to limited access to hard information, I thought the “experts” rationale for today’s sell-off was well off the mark.
Apparently, most pundits believe major investors are concerned about potential increases in the debt problems in Spain, causing today’s market hiccups here at home. Yet, I don’t agree with their conclusion. And that’s because I suspect money-managers are fearful of our own nation’s problems, which now show significant signs of getting worse.
As every day goes by, our deficit grows larger with no signs whatsoever of lessening anytime soon. We’re still dependent on foreign oil, which affects businesses' costs significantly more than it should, simply due to political pandering. Add to that the bloated obligations to overblown pensions and benefits, draining additional funds from the system, and profits reduce or disappear altogether.
And then there’s my favorite topic of late, the new health care tax which is becoming clearer each day that passes. That legislation by itself is now causing businesses and investors to seriously cut back on growth projections significantly.
Therefore, as I interpret this information, the thing that stands out most to me is that until there’s a change in direction from the top, whether it’s a new approach by those now in office, or an elected future replacement, the U.S. economic situation won’t likely recover at all. On the other hand, though, I doubt it would really matter whatsoever as to what went on in Spain, or any other foreign nation, if our own problems simply were fixed right here at home.
That’s it for today folks.
Adios
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