Stocks Plunge as Unemployment Rises
On the stock market’s worst day since 2008, the Dow plunges a grotesque 512 points as the further fears of a global economic disaster has investors curled up in fear and no doubt panic.
For months there has been talk about the economic disaster subsiding and very little evidence of any such positivity except for those who are in the top 1% of wealth. After all, they are the only ones who can find that this dark cloud hovering over the current global economic state has for them a silver lining.
It is a shame to see that people are just now noticing that the stimulus plan did not work. If people are scared, they are scared. Kicking people back a few extra dollars on their taxes are not going to encourage them to spend or even invest it in the way that the economy would need them to for a truly positive upsurge in the economy.
The economy relies 70% on consumer spending.
We are headed back to a recession; the question becomes how severe will it be this time around?
The markets in the U.S. are largely affected by the fact that there are no jobs and with people lining at up the unemployment offices, it’s just not going to be that easy anymore to collect. It is because the system has been abused at times where it wasn’t needed that heavily? Or it because despite the raising of the debt ceiling the country is still largely broke? Both can be easily attributed as the cause and effect.
The S&P 500, the Dow and Nasdaq have all tumbled in excess of 10% in the last week and a half.
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