Capitalism will be blamed if the world has to face another recession but the problem isn’t Capitalism, it’s crony Capitalism, disastrous fiscal policies, unsustainable debt and profligate spending. The problem is the Federal government.
The markets are down by more than 1000 points this week with a 530 point decline Friday alone,. It was the fourth worst drop in its history. Apple lost everything it gained for the year, John Deere stock fell more than 8 percent and Microsoft more than 5 percent. Energy stocks and technology stocks were hammered across the board, NBC News reported.
Stocks began falling last week when China announced it was devaluing its currency.
This could just be a correction. The market has been overdue for a correction. There is always the danger of a market sell-off spiraling however.
London Daily Telegraph columnist John Ficenec said the global central bank easing is out of control.
“From China to Brazil, the central banks have lost control, and at the same time the global economy is grinding to a halt,” he wrote.
“It is only a matter of time before stock markets collapse under the weight of their lofty expectations and record valuations,” he warns. “Time is now rapidly running out.”
He said the central banks are losing control and we are one minute to midnight.
China’s economy is at a low point after 7 percent growth over the last 25 years. They are devaluing their currency as a last resort. Ficenec believes China has come to the brick wall.
China was supposed to save the global economy.
Ficenec posted charts summarizing the collapse of the commodities market, a consequent credit crisis, and he demonstrated that credit markets are trying to roll over, the U.S. market is overvalued, and so on.
A Bloomberg report said the problem with the markets is the U.S. market is returning to normalcy. Investors are not hanging in there any longer while the global markets continue in turmoil. They stayed in past the Greek crisis but now they’re not sure where to put their money.
Oil prices are crashing and that’s a bad thing, companies are going under.
We were on the verge on becoming energy self-sufficient but the government machinations are destroying the opportunity.
Mark Levin blasted Big Government spending on his show Friday night. He quoted George Mason University Professor Walter Williams who described it as an economic pathology driving the nation into financial ruin. “We’ve become an immoral people forcing one American to serve the purposes of another,” Williams said. Runaway debt is merely a symptom of the real problem, he concluded.
Levin said that the federal government ruined the housing market and caused the last recession. After the recession, the Federal Reserve pursued monetary policies that were equally ruinous. The Federal Reserve has essentially nationalized the bank. About 85% of what the banks do today is controlled by the Feds. He described them as another Politburo. They’ve monetized trillions and trillions of dollars of debt. They pile debt upon debt and pump it into the economy in the hopes of creating growth. Their policies are destroying private business, distorting the market and setting the stage for further destabilization. They have also planned for a future cut to the dollar’s value.