Even with your eyes closed you could see this one coming, and it's not over yet !
Wall Street sent a crystal clear signal Thursday and that message was that all is not well. Just when Washington thought the U.S. economy was back on track.
The Dow Jones industrial average took a very serious nose dive, dropping more than 500 points Thursday, erasing its gains for the year as investors gave President Obama a present on his 50th birthday that he'd rather return.
But the White House, which is cringing for a monthly jobs report Friday that is expected to bring alot more bad news, showed no signs of panic after the steep dive.
Jobless claims have remained in neutral at that level for 17 weeks, leading economists to fear the strength of the economic recovery. In Europe, investors are worried that Italy and Spain will need a bailout from the European Union.
Stocks plunged over worries over new data showing unstable economic weakness in the U.S. and Europe. Investors were frantic by reports showing the number of Americans applying for first-time jobless benefits fell to 400,000 from a revised 401,000 in the prior week.
Despite the deal that will cut up to $2.4 trillion in federal spending over the next decade, reports show the economy is still hurting struggling to gain its footing after a severe recession ended two years ago.
Consumer spending is flat. Service businesses are struggleing to stay alive.Manufacturing is extremely slow and the economy isn’t growing fast enough to wdelcome a growing labor force. The only thing growing is corporate profits.
Unfortunately, I believe this country is racing towards another recession, I hope not. We cannot afford another one.
YOURS IN LIBERTY ! ! !
Bob Yeager
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