That was scary; stock market falls nearly 1,000 points--How about that recovery?
Then I refreshed it: -468. Refresh: -800 something. -963 at 1:47pm, Central Time. Pretty surreal. Talk about Mr. Toad's Wild Ride!
Then it started recovering: -717. -697. -580. -472. At 2:10 back "up" to -338.95. In all, it fell 998.5 at about 2:45 pm Eastern Time, for its largest intraday drop ever, and recovered to close at -348.63. Who would ever think that number would look good?
Why? Blame it on bad news from Greece and maybe some China news too. After all, if China's economy crashes, who is going to buy our debt?
After the market rebounded back to the 300s, I checked Gold: $1,203.90 at 2:48pm ET, refresh, $1,204, refresh, $1207.10, refresh, $1,210.70 at 3:31pm ET
I don't believe gold has been in the $1,200 range since last December 2, 2009 when it hit $1,213. For metal market watchers, Mark Belling predicted during the summer of 2008 that gold would reach $1,200 by year end 2009. He then updated that prediction in Feb. of this year to be $1,325 by Labor Day 2010. (Silver to reach $19.75.) If the Greek debt problem expands to other downgraded countries of Portugal, Italy, Ireland, [Greece ] and Spain or PIIGS for short, Belling may need to make a new prediction.
I have long called our present recovery the falling in love with love recovery--something based on nothing more than a desire for a recovery--no real substance. Our unemployment rate is only under 10% because of all the government jobs created. The private sector still isn't really hiring.
Look at Europe with its PIIGS and huge debt. America isn't far behind--Moody's has threatened reducing our bond status. Investors look at what is happening in Europe and worry about what is happening here. In the meantime, our President, and you could add Governor Doyle and Mayor Barrett too, spend money like water. Even the CBO says our Fiscal policy is 'unsustainable'.
We cannot build a recovery on spending money we don't have. Economies at the state level aren't in much better shape. California and New York are near the brink; Wisconsin is not far behind. Wisconsin is hemorrhaging jobs, yet we still push for High Speed Rail and a 3.8 mile trolley line to mention 2 foolish expenditures.
No real recovery? Roller-coaster stock and metal markets? I think we have to start saying it: It's the Spending, Stupid, both here and abroad.
Links: Practically Speaking, Betterbrookfield, RandyMelchert, Jay Weber, Vicki McKenna, The Right View Wisconsin, CNS News, Mark Levin, Breitbart BigGovernment, The Heritage Foundation