How far does the stock market have to go down before we officially call it a crash? The Dow is now down more than 2,000 points in just the last 14 trading days. So can we now call this “The Stock Market Crash of 2011”? Today the Dow was down 519 points. Yesterday, an announcement by the Federal Reserve indicating that the Fed would keep interest rates near zero until mid-2013 helped the Dow surge more than 400 points, but all of those gains were wiped out today. It turns out that the Federal Reserve was only able to stabilize the financial markets for a single day. Fears about the European sovereign debt crisis and the crumbling U.S. economy continue to dominate the marketplace. With each passing day, things are looking more and more like 2008 all over again. So what is going to happen if “The Stock Market Crash of 2011” pushes the U.S. economy into “The Recession of 2012”? (Read More...)
The Federal Reserve Saves The Stock Market?
The Federal Reserve has saved the stock market! Well, at least for a day. That was one heck of a “dead cat bounce” that we saw on Tuesday. Normally, after the kind of dramatic decline that we saw on Monday there is some sort of a rebound, but on Tuesday the market did not begin to soar until the Federal Reserve pledged to leave interest rates near zero until mid-2013. Once the Fed made their announcement, the market went haywire. At one point the Dow was down more than 200 points, but by the end of the day it was up 430 points. It was a desperate move for the Federal Reserve to pledge not to raise interest rates for the next two years, and it has stabilized financial markets for the moment. But what is the Fed going to do to save the stock market when it starts crashing next week or next month? The underlying financial fundamentals continue to get worse and worse. Europe is a mess, Japan is a mess and the United States is a mess. The Federal Reserve can try to keep all of the balls in the air for as long as possible, but at some point the juggling act is going to end and the house of cards is going to come crashing down. (Read More...)
A 634 Point Stock Market Crash And 8 More Reasons Why You Should Be Deeply Concerned That The U.S. Government Has Lost Its AAA Credit Rating
Are you ready for part two of the global financial collapse? Many now fear that we may be on the verge of a repeat of 2008 after the events of the last several days. On Friday, Standard & Poor’s stripped the U.S. government of its AAA credit rating for the first time in history. World financial markets had been anticipating a potential downgrade, but that still didn’t stop panic from ensuing as this week began. On Monday, the Dow Jones Industrial Average dropped 634.76 points, which represented a 5.5 percent plunge. It was the largest one day point decline and the largest one day percentage decline since December 1, 2008. Overall, stocks have fallen by about 15 percent over the past two weeks. When Standard & Poor’s downgraded long-term U.S. government debt from AAA to AA+, it was just one more indication that faith in the U.S. financial system is faltering. Previously, U.S. government debt had a AAA rating from S&P continuously since 1941, but now that streak is over. Nobody is quite sure what comes next. We truly are in unprecedented territory. But one thing is for sure – there is a lot of fear in the air right now. (Read More...)
The Debt Ceiling Deal From Hell
Is the debt ceiling deal supposed to be some sort of a cruel joke? Is this what the American people have been waiting months and months for? The “debt ceiling deal from hell” is a complete and total fraud. Barack Obama will not need to worry about the debt ceiling again until after the 2012 election, and no “real” spending cuts will happen until after the 2012 election. The way the political game in Washington D.C. is played today, if you don’t get something right now, you probably will never end up getting it. The Republicans have traded a massive debt ceiling increase right now for the possibility of very skimpy budget cuts in the future. Meanwhile, this deal establishes a new “Super Congress” that threatens to fundamentally alter our political system (and not in a good way). The funny thing is that everyone is running around proclaiming that the Tea Party won this battle. That is a complete and total lie. (Read More...)
GE CEO Jeffrey Immelt, The Head Of Obama’s Jobs Council, Is Moving Jobs And Economic Infrastructure To China At A Blistering Pace
Jeffrey Immelt, the head of Barack Obama’s highly touted “Jobs Council”, is moving even more GE infrastructure to China. GE makes more medical-imaging machines than anyone else in the world, and now GE has announced that it “is moving the headquarters of its 115-year-old X-ray business to Beijing“. Apparently, this is all part of a “plan to invest about $2 billion across China” over the next few years. But moving core pieces of its business overseas is nothing new for GE. Under Immelt, GE has shipped tens of thousands of good jobs out of the United States. Perhaps GE should change its slogan to “Imagination At Work (In China)”. If the very people that have been entrusted with solving the unemployment crisis are shipping jobs out of the country, what hope is there that things are going to turn around any time soon? (Read More...)
Stress!
Has anyone else noticed that the level of stress in this country appears to be extremely high right now? Today, it seems like our federal government, our state governments and most American families live in a constant state of crisis. Everywhere you look there are major problems. Right now everyone is stressed out because of the “debt ceiling deadline”. Earlier this year everyone was freaked out about the possibility of a “government shutdown”. If by some miracle Barack Obama and the Republicans are able to reach a deal in the next few days that will not help the national stress level for long. Another gut-wrenching “national crisis” will almost certainly come along very quickly. Meanwhile, average American families are feeling more stress than ever. There are millions of ordinary Americans that either cannot find jobs or are working as hard as they can and yet cannot seem to pay their mortgages and provide the basics for their families. We are a nation that is really stressed out right now, and as things continue to unravel the level of stress is only going to increase. (Read More...)
Broke! 10 Facts About The Financial Condition Of American Families That Will Blow Your Mind
The crumbling U.S. economy is putting an extraordinary amount of financial stress on American families. For many Americans, “flat broke” has become a permanent condition. Today, over half of all American families live paycheck to paycheck. Unemployment is rampant and those that do actually have jobs are finding that their wages are rising much more slowly than prices are. The financial condition of average American families continues to decline and this is showing up in all of the recent surveys. For example, according to a new Gallup poll, “lack of money/low wages” is the number one financial concern for American families. To make ends meet, many American families are going into even more debt and more American families than ever are turning to government assistance. Right now, more Americans than at any other point since World War II are flat broke and have lost hope. Until this changes, the frustration level in this country is going to continue to grow. (Read More...)
Layoffs, Layoffs Everywhere You Look There Are Layoffs
The competition for jobs in the United States is absolutely brutal right now, and it is about to get worse. A new wave of layoffs is sweeping across America. During tough economic times, Wall Street favors companies that are able to cut costs, and the fastest way to “cut costs” is to eliminate employees. After a period of relative stability, the employment picture in the U.S. is starting to get bleaker again. New applications for unemployment benefits have now been above 400,000 for 15 straight weeks. Finding a good job is kind of like winning the lottery in this economy. Our federal government and the state governments have made it incredibly complicated and extremely expensive to have employees on the payroll. It is getting harder and harder to get a large enough return to justify the time and expense that hiring employees requires. So many firms now find themselves trying to do more with the employees that they already have. Other companies are turning to temp agencies as a way to reduce costs and increase workplace flexibility. A lot of the big corporations are sending as much work as they can overseas where the wages are far lower and where the regulatory environment is much simpler. All of this is really bad news for American workers that just want good jobs that will enable them to provide for their families. (Read More...)