If this is recovery, I hate to see a Depression!
- Near 10% unemployment for months on end
- Housing starts plummeted in June
- Americans are clutching onto what little savings they have
- Consumer Confidence plunged…
No matter where they look, investors are seeing economic trouble.
Stocks and interest rates tumbled Tuesday after signs of slowing economies from China to the U.S. spooked traders who were already uneasy about a global recovery.
The Dow Jones industrial average fell 268 points, or 2.7 percent, and dropped below 10,000. The benchmark Standard & Poor’s 500 index closed at its lowest level since October.
Interest rates fell in the Treasury market after demand for the safety of government debt grew. The yield on the 10-year note dropped to as low as 2.96 percent, the first time it has fallen below 3 percent since April 2009. The yield is used as a benchmark for many consumer loans and mortgages.
The markets began the day by following Asian and European markets lower. Asian stocks fell after an index that forecasts economic activity for China was revised lower. European indexes continued the slide after Greek workers walked off the job to protest steep budget cuts.
Then, shortly after U.S. trading began, the market was hit with news that consumer confidence fell sharply this month because of worries about jobs and the overall economy. The Conference Board’s Consumer Confidence Index fell to 52.9 from a revised 62.7 in May. It was the steepest drop since February and economists polled by Thomson Reuters had forecast only a modest dip.
Nice work, Barry! He may have inherited th problem, but the Stimulus & Healthcare Spending Us Into Debt Acts are killing the private sector recovery.
On a completely related and weird note, I pulled all of my current and future 401K holdings out of stocks & bonds Sunday evening and put them into a Fixed Interest account. I just had a funny feeling that this week folks would finally realize that the worst is yet to come.