Investors sour on downbeat of negative economic news

Posted By on June 1, 2012

The Dow’s gains for the year have been officially wiped away.

After thinking 2012 might be the year we work our way out of the long recession, the job numbers tell otherwise. After all the debt-financed stimulus, continued wasteful spending and inefficient use of tax receipts coming from Washington DC … confidence is slipping and so are the economic numbers. worstdayof2012forstocksToday’s stock market decline is making it the worst day of the year.

Companies have little reason to hire long term employees as the disincentives and risk to hire outweigh the incentives. The current administration continues to target job creators as the enemy and looks to them as a target to increase taxes. If anything, leadership in the Obama administration is either missing or adversarial when it comes to stimulating private business. I’m not sure America can survive another downturn … or even has time to wait until next year with the hope there might be a president who understands the economy, how to inspire businesses to risk capital and create jobs.

Comments

  • Looks like I’ll have to continue enjoying buying low with a long horizon before retirement, eh? 😉

    • It is obvious that I’m not a fan of President Obama’s policies … but wouldn’t mind being wrong if the administration’s increased regulation, desire for higher taxes on the investor class (eventually passed down to all in increased prices) and philosophy of a large central government (with citizen dependency) was working. Of course I’m not saying that bureaucrats from the other party know what they are doing either … but borrowing, taxing more and our government’s track record for foolish spending is a pitiful way to turn the economy around.

      I’m glad to see that your generation is still confident in your “long horizon” before retirement; my horizon is disappearing (we just lost a decade) … and my optimism is being challenged! 😉 Thanks for the comment.

      • Yeah, we differ a bit politically but I think we’re in our current situation due to more of a system-wide failure than any one thing in particular. Like you said, everyone’s to blame when it comes to gov’t spending over the past few decades.

        And I’m not saying I’m completely confident, but what other choice do I have at this point? Might as well invest with a long-term focus and hope for the best… :-p

        • With age and maturity … you’ll come around … “politically that is!” 😉

          As for our long-term focus, I have more confidence in the U.S. than Europe, or other economies … so I’m not giving up. At least not everyone is feeding from the trough just yet, although between corporate welfare/tax breaks and incentives and individual assistance of all kinds the percentage is getting pretty high. The “don’t cut my portion” can get pretty loud no matter which group we’re talking about. I’ll probably end up griping about changing social security or medicare as I near retirement age too — with ratios of payer to payee changing from 40:1 to 2:1 it’s inevitable that change needs to be made.

Desultory - des-uhl-tawr-ee, -tohr-ee

  1. lacking in consistency, constancy, or visible order, disconnected; fitful: desultory conversation.
  2. digressing from or unconnected with the main subject; random: a desultory remark.