Home > Uncategorized > Stock Market Sucker Rally Over?

Stock Market Sucker Rally Over?

It is looking more and more like the stock market sucker rally is
over. The big stock market rally on weak volume defied gravity for
months.

Now, with unemployment likely to increase for a year or better,
widespread deflation, the impending end of the first time home buyer
tax credit, the contraction in consumer credit, and the reality that
the only reason the economy has grown at all is because of government
spending, it should be obvious the party is over.

You can’t build a vibrant economy on spending and debt. In the long
run an economy needs to produce goods and services that people want to
buy. Consumers need to pay down their debt, increase their savings and
live within their means. Government needs to stop spending money it
doesn’t have. It also needs to stop falsely manipulating the economy
and robbing the public treasury to reward cronies.

Even assuming the above will happen – which I wouldn’t count on
government willingly doing the right thing – it will take years,
perhaps decades to right the economy. It’s time to sober up after the
drunken stock market rally. Government needs to stop offering booze to
alcoholics. Will it happen? Who knows. But continued government
foolishness (health care reform, cap and trade) will further harm our
economy for generations.

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Categories: Uncategorized
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