Friday, August 05, 2011

There Went Any Progress in 2011

The dramatic fall in the market yesterday wiped out all of the gains in recent history. Investors fled to treasuries and gold. Treasuries are in effect a negative investment when you consider inflation but they are a safe haven. It's not like we haven't been here before. Way back in 1936 FDR tried to attack the deficits created by his New Deal and we promptly fell back into recession. We know what works and what doesn't work but that doesn't seem to come into play when you are dealing with the Jesus and  the Triceratops Tea baggers. Never let it be said that facts and experience get in the way of insane beliefs. The market may be over reacting but the investors know that we are teetering on the brink of falling back into a recession and they are bailing.

I think is safe to say that we haven't seen the end of all this. Yeah, they are saying that today's job report is better than expected but adding 117,000 jobs doesn't even keep up with the new folks coming into the labor pool.

One good point is the latest polling shows that the American people are properly blaming the GOP and tea baggers for the sorry state of affairs.

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