So the Dow is down close to 500 points today (as of this moment, the NYT reports a drop of 438.89 points or 3.69%). [UPDATE: You’ll be pleased to know that, in a heroic last-minute push, the Dow managed to clear a 500-point loss, closing down 512.76 points, or 4.76%. The S&P 500 dropped 4.78%, and NASDAQ fell an impressive 5.08%. These are the largest percentage drops since February, 2009.]
And that’s on top of a couple of weeks of steady declines, egged on by the paralysis in Washington. Clearly, though, the awesome deal that was finally struck didn’t exactly reassure the markets. To the contrary, it appears to have persuaded them that things are not going to get better any time soon.
And Republicans are not done yet. The latest chapter of what Charley has aptly taken to calling the Big Stupid is that they now think pressing for a balanced budget amendment is a really good idea, to the point that soon-to-be-ex-Speaker Boehner
told members that the best thing they could do during the August recess was to sell their constituents on the idea that the amendment — which essentially stipulates that government cannot spend more than it takes in — is necessary and good.
Maybe Boehner is saying that to distract them from spending their time deciding whether they should depose him as Speaker now, or after the next election. Anyway, there appears to be no end to the damage these loons are intent on doing to the prospect of any sort of recovery in employment, and to everyone’s retirement accounts.
Well, great – thanks teabaggers!
joeltpatterson says
While we Democrats are talking about how nice it would be for the government to promote a growing economy (by spending, spending, spending), the Republicans have a plan and it is working: Tank the economy. A bad economy absolutely destroys people whose biggest asset is a modest home that they still owe a mortgage on.
But for the very few at the top, a bad economy still offers ways to amass wealth: prices on housing might drop, which a billionaire or millionaire with liquidity could buy and then hold as rentals for ten years, then sell for a good profit.
There’s a lot of cities in America where public schools or other buildings are on prime real estate, and cash-strapped cities will sell them to a millionaire who will develop it into condos or apartments.
And if the public panic allows the GOP to do things like eliminate the regulations guaranteeing safe food and water or safe air travel, or safety-testing for drugs, then that’s an even bigger win.
It is a great strategy, and it is anything but stupid.
AmberPaw says
But then the Neo Barons, plutocrats, banksters, and oligarchs fought the new deal and have always preferred serfs and slavery, haven’t they?
And for those who vote against their own interest, and believe the big lie – well, the only one I know who is profiting in the middle class are those who gambled by buying gold or gold futures; one of those being my champion Texas Holdem playing two Ph.D. brother.
Did you follow the regional breakdown on the new Tea Party members? No? Lets just say on the Sesquicentennial of the Civil War, the South is poised to win on the replay.
Check this out: http://www.salon.com/news/politics/war_room/2011/08/02/lind_tea_party/index.html One of you tech types might be able to embed these graphs. Stark, but real.
hoyapaul says
at what point big business will stop funding the Republicans, given how they are intent on destroying the American economy.
The love affair between the GOP and Wall Street is odd in the sense that while Wall St.’s interests are very frequently contrary to what is best for the rest of us, the one thing they’ve long done very well and efficiently is pursue their own self-interests.
kbusch says
I’ve seen a lot of people embark on some self-improvement program that does not work. They attribute its failures to lack of dedication. They work harder at it and there by attain failure strenuously. This is a classic way of avoiding learning from experience.
Tea Party partisans can be counted on to follow this path. All evidence of failure is evidence of insufficient purity and radicalism.
seascraper says
Last week everybody said the market was dropping because there was going to be a default.
Christopher says
…and it appears the point of this diary is to say the markets appear to not like a bad debt deal much better than no debt deal. Maybe someday soon Wall Street will realize that a thriving middle class really is ultimately in their own best interests as well.
David says
What the markets want is a good economy so that companies can prosper. A default would have made that unlikely. Unfortunately, so does the default-avoiding deal.
seascraper says
The point of this diary is that Republicans are causing the market to drop.
SomervilleTom says
The markets, unlike the “leaders” of both persuasions, see a double-dip recession coming. They understand that “austerity” is precisely the WRONG prescription for the life-threatening illness that besets our economy.
And yes, the Republicans are causing the market to drop. They have successfully forced austerity to be the only option being pursued. Too many of them have made it clear that they’ve only just begun their campaign to eviscerate government as we know it.
That is delusional disaster.
Christopher says
…doesn’t it?:)
tim-little says
I clicked on the wrong button. That should be a “thumbs up” not a “thumbs down” from me.
tim-little says
And that’s all in reference to David’s post “Exactly”. Ok, time for more coffee before I do any more damage.
seascraper says
That’s ok I would have clicked thumbs down so just imagine you were clicking for me.