The Dow Jones fell another 119 + points today to 7,062. In 2007 it was up to 13,930 so we have lost about half of the value of stocks since then. Is this how it felt in 1929? I am not a financial advisor but based upon the actions of the federal government I see little reason to buy if I was an investor. Even if I made money they would tax it at a high rate. Why take the risk? If no one is willing to invest who will provide jobs? I don't want to appear as an alarmist but I don't see any change other than the market will go lower and lower resulting in a deep long recession or worse a depression. I see no light at the end of the tunnel. Better for everyone to dig in for the long hall.It's going to get worse before it gets better. We will weather the storm but their is no avoiding the pain to come. In World War II people planted "Victory Gardens" in their back yard to supplement their food supply. Maybe before it is all over we will be planting "Obama Gardens." I hope I am wrong..... but it is better to be prepared for the worst than live in a fools paradise.I just received word that the courts here in Jackson County will be closed every Friday for the foreseeable future due to the decrease in state tax revenues. The Halls of Justice closed! The state of Oregon just borrowed money to put in a new elevator in a building at Southern Oregon University but doesn't have money enough to keep the court system open.
UPDATE:
Larry Kudlow of the Kudlow Report on CNBC:
Let me be very clear on the economics of President Obama’s State of the Union speech and his budget.(To read the rest click on the title for a link)
He is declaring war on investors, entrepreneurs, small businesses, large corporations, and private-equity and venture-capital funds.
That is the meaning of his anti-growth tax-hike proposals, which make absolutely no sense at all — either for this recession or from the standpoint of expanding our economy’s long-run potential to grow.
UPDATE 2
The news just keeps getting worse. This just in from the Wall Street Journal:
The Dow Jones Industrial Average dropped 119.15 points, or 1.7%, to end at 7062.93. The blue-chip benchmark ended down 937.93 points, or 11.72% on the month -- the worst percentage drop since 1933, when it fell 15.62%. The Dow industrials have fallen six months in a row and are now more than 50% off their record highs hit in October of 2007
Tough times make tough people!
