This pretty accurately sums it up:
Fear on the Street: Inside the Stock Sell-Off
“There’s a growing realization among even the most optimistic investors that the United States is entering a new recession — a dreaded “double-dip.” Adding to the pain is the sense that the government and Federal Reserve are out of both ideas and ways to stimulate the economy. Corporate America is sitting on record amounts of cash but is refusing to make new investments with so little end demand for its products. Consumers and corporations are hoarding cash, and the economy appears to be seizing. The debt ceiling debate was a fiasco, snuffing any remaining confidence traders had for help from Washington, D.C.”
Too bad we focused on the manufactured crisis of the debt ceiling—a political stunt, non-deal, designed to institute questionable cuts that could’ve waited—instead of focusing on getting the American worker-consumer-homeowner back on their financial feet. A basic component of economics is the consumer; without the consumer, you don’t have an economy. I see these events as repercussions of a system that has marginalized the consumers and ignored the voters.
From the article:
Fear on the Street: Inside the Stock Sell-Off”
http://finance.yahoo.com/blogs/breakout/fear-street-inside-stock-sell-off-204130841.html
