Yesterday, Fed Chairman Bernanke spoke to a House panel as the Commerce Department reported new-home sales sank 11.2% to an annualized 309,000, the lowest since records began in 1963. Analysts expected a small gain to 354,000. That stepped up fears that the housing and broader economic revival could stall as the government and Fed end support ( a conclusion from Investors Daily).
Add to this the 493,000 new unemployment applications for the week, and you have a picture of an economy in free fall.
Too bad we do not have anyone at the helm who has a clue on how to deal with this. Understand, the American economy is a free-market economy. That is not simply a political statement, rather, it describes the principles upon which our economy works and progresses and grows and [even] fails. If we were a Communist country, maybe Obama's Marxist economics might work BUT to force an European style socialist approach to a free-market competitive system with a 200 year history is just plain stupid.
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If things continue to slide, the predictions of a 29 seat swing in the House and a 9 seat swing in the Senate will look like the Colts Super Bowl win predictions.
ReplyDeleteUnless Obama pulls his head out from his sphincter, he will be facing a filibuster proof GOP 112th congress during his lame duck period.