Welcome back from Labor Day weekend! What? No job? No matter. Market meltdown 2011 is in full swing again today after having the weekend to digest the dismal jobs numbers Friday and future outlook. Summer is over, and gone with it is the hope that we started the sunny season with. Now we look forward to winter doldrums and further contractions in spending. Oh joy, right?
Market Meldown Has Got Me Aggravated!
I’m sure I’m like a lot of you investors out there – I LIKE A RISING MARKET. Well facts are we have a falling market, and not even the gentle nudging of Chairman Bernanke’s hint at the upcoming QE3 is stopping it. Without an outright declaration of further quantitative easing the market meltdown will continue apparently. Calm suggestive words haven’t been enough to assuage business managers’ fears, resulting in further layoff announcements (many in the finance and banking sector).
Challenging Business and Legal Environment Stifling Growth?
More than one article over the weekend suggested that the unfavorable legal environment was likely to stifle growth in 2011-2012. News that the Federal Housing Agency was suing 17 of the biggest American banks over fraudulent practices in mortgage financing stoked fears of further trouble in the banking sector. Sad to say that trouble in the financial services industry has a significant trickle down effect into other labor / service related markets. Business sentiment over President Obama’s lifting of Smog related regulations did little to mute business sector unrest, but at least it was a step in the right direction.
Paging Ben Bernanke to the Market Rescue
I dare say the only news likely to halt today’s market meltdown is further words (perhaps explicit) from the Fed Chairman that QE3 was on the way. There doesn’t seem to be anyone else either politically or economically credible to listen to these days. Unfortunately President Obama’s promise-filled first term is demonstrating the weakness associated with elevating an inexperienced politician to the nation’s highest office. I for one HOPE (for all our sakes) he turns things around, however experience tells me The President is business tone deaf. That leaves our short term fates in the hands of the Fed Chairman. Paging Ben Bernanke! Market meltdown in progress! Clean up on Wall Street pronto, please!