Down for the sixth week – Dow Industrial Average heads south
Posted By RichC on June 10, 2011
I wish I would have been a better listener to the old adage: “Sell in May and go away and play.” (INDU heads below 12000 Friday morning)
It looks as if we’re in for a 6th week of down markets; a tough summer for those Americans hoping President Obama’s “bump in the road” comment was true and reminded that last years “recovery summer” comment was as misguided as the previous President’s “mission accomplished” (of course you won’t hear that in the sympathetic to Obama press).
Nowadays there are a few more economists and pundits believing that the spending and Fed easing policies …along with the rammed through Obamacare aren’t all that helpful in creating “private sector” jobs or encouraging business expansion – in fact they may be doing the opposite. Those new policies and laws along with 200 new banking regulations, high corporate tax rates and lack of a coherent energy policy reduce the incentive on small business as well as large international companies to invest in the United States. Many large companies are sitting on cash, just waiting for a sign (probably a political change) before they invest in the US or hire additional American workers. In the meantime, those who can least afford it are saddled with the high cost of energy which is a “regressive hidden tax” on middle America. Keeping energy costs high is the weak dollar (QE1, QE2 and 14 trillion debt) and the Obama administrations’ energy policies restricting domestic oil and coal. How long will it be before we realize that a strong dollar and pro-growth strategy is far better for the economy than one that deflate the currency, over regulates companies and encourages business to move offshore?
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