Saturday, October 31, 2009

Why did the stocks crash yesterday?

I am still attempting to figure it out.

Nothing changed in the last two days that would cause the stock market to jump on Thursday and then crash on Friday.

On Thursday, GDP showed growth at 3.5% for the last quarter. All that was government debt spending. The government went out and borrowed a bunch of money and spent freely.

Truth be told, the GDP did not really grow during the last quarter, government debt spending grew. This is not what our economy needs. The economy needs the private sector and individuals to start spending again.

We learned on Friday, that consumer spending dropped last quarter, sending the Dow into another nose dive.

Folks, we are in the same position we were a week ago, a month ago, a year ago.

Until the regular folks have confidence in our economy, no amount of faked job numbers by the Obama administration is going fix this.

I am frustrated with the dancing the same dance for months in a row.

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