When Will The Recession End?
China didn’t increase its stimulus package and all the people gambling on its increased spending are now taking a hit in markets as the government says not yet for an increase in spending.
All across the board we have seen stocks fall. In the domestic market the market is down almost 300 points, Pfizer and Walmart are the only stocks up in the majors of the S & p 500. Gold looks like about the only serious increase in metals but as was said on the Nightly Business Week, unless you plan on wearing it, the chance of the world going back in the gold standard is slim to none.
Australia had its first decline in Economic growth in over 20 years and that has been exacerbated because of the withdrawal of Chinese investment in Australia energy companies.
David Wyss chief economist for the S & P. said on Bloomberg that China and India were probably better positioned to recover than the west. India was better off because it has a large internal market but worse off because the government has no money for stimulus it is in debt. Strange that is doesn’t affect the US. China on the other hand is in the opposite position has a weak internal market but it has lots of cash reserves to stimulate its domestic economy.
On the other hand the US economy has a rough road to hoe and there will be a lot more down turn before the economy comes back in the USA.
California is debating Gay rights again with Prop. 8 being debated before the State Supreme Court.
The Republicans in the house are pontificating about how the Democratic plan will fail. Tom McClintock is claiming that the policies of FDR failed. He claims the stock market is strictly a forward looking mechanism and he claims that the stock market calls the democratic policies a failure. Noted that there was almost no one in Congress as they had already voted to allow judges to alleviate conditions of home mortgages. Sounds like the Bush attempt to screw people out of bankruptcy protection just got rolled back a notch. I wonder how much the Vice President was making off of that legislation since he backed it when he was Senator from Delaware.
Anyway the bets are optimistically around the end of the year and negatively 2 years later. Obama better hope he has a rebound in his 4Th year or we might be back under the right wing terror and this time I don’t think they will give it back when they loose. I think if the Republicans get back in power unless they pick a saint we are looking at martial law.