The Dow Jones average suffered its latest calamitous decline on Thursday, plunging 419 points and erasing much of the progress that had been made after the last series of wild swings two weeks ago.There were many factors at work in Thursday's carnage, which came after markets in Asia and Europe experienced similar turmoil, but the overriding one seems to be this: Just about everyone now believes the U.S. economy is getting worse -- and no one thinks our leaders in Washington are about to do anything meaningful about it.
I can’t understand the faith they had up till now. And what I’m wondering is, will US policy makers ever realize that war is not, in fact, a builder of the economy except in the very short term, and is instead a draining money pit?
The spark to the new fall was a Morgan Stanley report warning that global growth was slowing and that the United States and Europe were on the precipice of plunging into a new recession, two years after the end of the last one."A negative feedback loop between weak growth and soggy asset markets now appears to be in the making in Europe and the US. This should be aggravated by the prospect of fiscal tightening in the US and Europe," it said.
Aggravated by the prospect of fiscal tightening.
Aw, gee. And everybody was madly stuffing their money into Treasury bonds, when was that? Just last week? And what were they thinking?US Treasury bond yields plunged Thursday, with the 10-year yield hitting a record low as worries about a new recession in the United States and Europe battered stock markets.
....but hey, do what you want....you will anyway.
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