The Republican administration and all the slick, Wall Street criminal bunco artists that they front for, have been touting the scenario that the American economy has been in a mild slowdown for the last year, just taking a little breather. No recession. No depression. Nothing to worry about.
From the very beginning of the slowdown last Summer, through the ensuing Fall, Winter and Spring the script has called for a robust recovery, starting in the third quarter of this year. You kept hearing it over and over again, as if repeating it could make it true. A lot of investors have been buying into weakness in the equities markets, in the belief that things will turn around this Summer, as Q3 unfolds and they will reap profits.
Well, Q3 is here. This morning 29 of the Dow 30 Industrials are down to a composite tune of 200+ points and falling. Major, multi year support levels have been breached. Earnings are bad. Unemployment is rising. Consumers are spending all their money on staple food items and gasoline. Inflationary pressures are exploding, even in the face of a massive decapitalization in real estate and banking, with trillions in value disappeared.
Individuals and portfolio managers alike, are left without an approved script to follow for the next leg of the bunco/pyramid scheme that Wall Street has degenerated into or maybe always was.
Tough luck, suckers! Bush and his friends are leaving town in a few months. Their family trusts have long ago liquidated holdings in American corporations. They will come back later and scavenge through the post apocalyptic wreckage for bargains but that will be far in the Mad Max future, that the rest of us will have to live through.