IS IT ANY WONDER THE MARKET CONTINUES TO SINK?
February 24, 2009
As the market continues to sell off and we plumb 12-year lows, it looks like the United States is about to turn its back on the free-enterprise system that made it all possible, says Investor's Business Daily (IBD).
The failure to include any meaningful tax cuts for either individuals or small businesses while throwing hundreds of billions of dollars at profligate state governments and programs has investors shaking their heads, says IBD:
- A $75 billion bailout for 9 million Americans who face foreclosure is the government's answer to the housing crunch.
- Energy solutions ranging from the expansion of offshore drilling and the development of Alaska's bountiful arctic oil reserves to developing shale oil in America's Big Sky country are taken off the table.
- A 1,000-plus page stimulus bill is bulled through Congress with no GOP input and not a single member of Congress reading it before passage; it borders on censorship.
- Trade protectionism passes as policy, even amid the administration's lip service to free trade, and the missile defense system that offers so much hope for future security is being discussed as a "bargaining chip" with Russia.
- Lawmakers who seem more interested in pleasing special interests than voters back home now control Congress, business leaders are demonized and words like "catastrophe," "crisis" and "depression" are coming from the mouth of the newly elected president, rather than words of hope and optimism.
To think that more of the same is on the way seems to be sinking in. Investors are watching closely and not caring for what they see. Sooner or later, the market will rally -- but not without good reason to do, says IBD.
Source: Editorial, "Is It Any Wonder The Market Continues to Sink?" Investor's Business Daily, February 20, 2009.
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