In many ways the bad news of the past few weeks has set the U.S. stock market up, once again, for a 'Black Monday' event that could make all previous sell offs look mild by comparison. Why? Well, there are so many reasons, but the leading suspects are high crude oil prices, the ever shrinking value of the U.S. dollar and the mortgage loan crisis that could easily move from just a sub-prime problem into the entire mortgage market as a whole. The previous three Congress' have spent money like a bunch of drunken sailors and President Bush has not acted like their commanding officer and kept them in check, instead President Bush appears more like an enabler to big spending increases rather than a true fiscal conservative Republican. In fact, I do not believe President Bush is a fiscal conservative at all, instead he is just a 'one trick pony' when it comes to domestic policy and that one issue is to cut taxes as often as possible to appease GOP voters that believe in smaller government.
As the federal government continues, month after month, to spend money that they don't have - the U.S. federal debit has climbed to almost nine (9) trillion dollars in recent days and along with that alarming figure, the U.S. dollar has dropped to it's lowest level against other major foreign currency in generations. Add to this disastrous state of affairs the news from last week that the recent rise in oil prices had more to do with the decrease in the value of the U.S. dollar than it did with actual supply and demand issues and there is a real possibility that at some point in the near future, the U.S. stock market is going to have a huge one day downside slide and when that happens it is going to be a bad and messy day, indeed. Never in my lifetime I have seen a worse group of political leaders both from the Republicans and Democrats. Some of these, so called, leaders have even speculated that it is good for the U.S. to be in debt for a variety of 'hair brained' reasons which make no sense to anyone except a politician that is wasting away our future in order to buy votes today.
While there is no way I can be 100% correct about another 'Black Monday' happening soon on Wall Street, my gut feeling not only says that it will happen, soon - but when it does happen it could add up to a loss in the DOW Jones of more than 1000 points in a single day. Put simply, the fiscal affairs of the United States are in a huge mess right now and if this country was a corporation, creditors would have long ago forced it into bankruptcy because of solvency issues. While Members of Congress are always complaining about how much CEO's are earning in private corporations, wouldn't it be nice if they did their job as well as these CEO's, instead of spending this great country into an upcoming recession? No one knows the exactly time when a top heavy Dow Jones Industrials Average will lose it's legs and collapse, but just like it has happened before, it will happen again and this next collapse in the stock market is going to hurt many everyday people, badly.
Read more about the Economy:
Are American's Recession Fears Justified?
Stan O'Neal's 'Golden Parachute' Worth $160 Million
Merrill Lynch CEO Stan O'Neal Out?
Fed Cuts Rates To Steady Housing Market
Stock Market Declines
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