Government spending of taxpayers money on social engineering and pork barrel projects help the stock markets plunge toward recession. Image Credit: CFNEWS 13
Excitement On Stimulus Sends Stocks Reeling
The Dow Jones opens today down by over 250 points on the anticipated news that Barack Obama has signed into law, the new $787 billion economic-stimulus package recently passed by the Democrat Party controlled Senate.
The Congressional Budget Office (CBO) estimates that the time-value cost of this legislation and its spending will actually top 3 Trillion dollars once the borrowed monies interest has been paid.
The business markets know that this action will lead to inflation and recession at the same time, similiar to the conditions set up by the economic policies pursued by the 39th president of the United States, Jimmy Carter.
Welcome to the second coming of "Stagflation"!
This excerpted and edited from CNN/Money -
Recession fears slam Wall Street
Stocks slump Tuesday morning as investors worry the stimulus plan won't go far enough. Financials lead the way lower.
By CNNMoney.com staff - Last Updated: February 17, 2009: 9:44 AM ET
Stocks slumped Tuesday morning as financial shares sold off amid worries that the recession is worsening, even as President Obama prepares to sign into law the $787 billion economic stimulus plan.
The Dow Jones industrial average (INDU) fell 210 points, or about 2.7% in the early going [and got worse].
The Standard & Poor's 500 (SPX) index lost 28 points, or about 3.4%. The Nasdaq composite (COMP) lost 47 points, or about 3.1%.
Peter Cardillo, chief market economist for Avalon Partners, said uneasiness over the stimulus package is the prime suspect.
"I guess there's a lot of second thoughts about the stimulus package from the public," said Cardillo before the markets opened. "Obviously, there's a lot of fear out there, and that fear factor continue to weigh [on the markets.]"
Enthusiasm over the stimulus plan and bank bailout have been tempered by an ongoing barrage of bad corporate and economic news. Last week, the Dow shed 5.2%, the S&P 500 fell 4.8% and the Nasdaq stumbled 3.6%.
Looking forward, the president on Wednesday is expected to unveil his long-awaited foreclosure prevention plan.
Gold will be up.
Welcome to Carter's Second Term!