The Dow's Plummet Continues. Is More Stimulus on the Way?

A quick scan of the headlines shows the pessimism that has saturated the markets today. There's a litany of reports on the Dow falling into negative territory in 2012, the awful jobs report today, and a sprinkle of euro worries in the background. The Dow Jones  (INDEX: ^DJI  ) ended the day down 275 points, or 2.23%. That’s actually a softer fall than the S&P 500's drop of 2.41% or the Nasdaq's (INDEX: ^IXIC  ) 2.82% plunge.

Growing fears
After the morning was consumed with today's jobs report, attention shifted to the implications this afternoon. Much as the financial crisis eventually spread throughout Europe after the continent was initially spared the worst of the 2008 U.S. banking collapse, the effect of the current crisis in Europe is now spreading globally.

What are the implications of that? In the United States, more stimulus could be on the table. Today, Morgan Stanley raised its estimates of the likelihood of new federal stimulus from 50% all the way up to an 80% probability.

Recent Fed meetings had hinted that there wouldn't be more stimulus until the economy showed more deterioration. With the jobs market posting its worst gain in more than a year, that time appears to have come.

Stimulus is quickly entering the forefront of central bankers' minds. That could be an exhausting thought to investors who are now sitting on their fourth year of continued bailouts and government boosting of economies. The stimulus situation in America has become political enough. I'll just say that whether you like it or not, there is likely to be more quantitative easing. Adjust your investing accordingly.

On the China front, I will reiterate concerns I've been espousing for weeks: While investors will cheer in the short run, it'll be bad long term if the country moves forward with a stimulus that deepens its reliance on investing in infrastructure for growth.

Zooming out to stocks
Moving back from the macro picture, the worst losses today are concentrated in the energy, industrial goods, financial, and technology sectors. As of this writing, none of the 100 largest technology stocks is positive on the day.

Not surprisingly, the biggest losers are concentrated along Internet stocks. Despite continuing upgrades from analysts, Facebook (Nasdaq: FB  ) is down another 5.7% after a late-day rally yesterday. Groupon (Nasdaq: GRPN  ) is the worst performer in all of tech, down 9.6%. A lock-up period expired today, which means insider selling could be a culprit for its outsized decline. The company is now down from its earnings-related jump last month.

Looking at energy, some of the biggest losers are companies with shaky balance sheets. Oil is off 4.15% today, and a global downturn will send it even further south. That's bad news if you're a company with a high debt load and can't be profitable at today's energy prices. Berry Petroleum (NYSE: BRY  ) , a company with $1.4 billion in net debt and negative earnings and free cash flow, leads today's energy losers.

Think big picture
Remember that the greatest investors don't react to each day's events. Instead, they add them to a continuing flow of information, going contrarian when opportunity strikes. With the herd moving toward the exits today and more volatility ahead, opportunities will arrive for the patient investor. That's not to say investors should run out and buy hand over fist today, but instead should stay invested in high-quality companies. If the pessimism proves unwarranted, add to your best holdings.

That's it for this market checkup. Check out The Motley Fool's special report on long-term investing, where you'll find three promising stock picks for long-term investors, along with some tips on how to invest for your golden years. It's free, but don't wait -- get your report today while it's still available.

Eric Bleeker owns shares of no companies listed above. The Motley Fool owns shares of Facebook. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


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  • Report this Comment On June 01, 2012, at 5:09 PM, frogburger wrote:

    More stimulus makes me cringe.

    We have inmates running the asylum. It didn't work once, it didn't work twice but it'll sure work the third time.

    Coming from a country where the economy is run by a bunch of incompetent bureaucrats (France), seeing the US go the same way is torturous.

    All it does is erode the value of our paychecks and investments.

  • Report this Comment On June 01, 2012, at 5:20 PM, dav383838 wrote:

    Today was the day to "Be greedy when other are fearful" and pick up some great bargains.

  • Report this Comment On June 01, 2012, at 5:29 PM, xetn wrote:

    I believe QE **** is baked in the cake and is partially responsible for today's be gain in gold and silver.

  • Report this Comment On June 01, 2012, at 5:45 PM, WileyCyote wrote:

    We keep seeing these "expert" economists coming forth with the same solutions,(that didn't work) AGAIN!

    I do not believe that we can take ONE item (housing, jobs, infrastructure etc) and treat it as a seperate and distinct entity.

    This is an election year and what do we have???? A president and two houses of congress frozen in FEAR. They have become none other than a collection of nail biting,bed wetting children afraid of the dark.

    We NEED some LEADERS who are NOT afraid of the dark and who will be willing to tell us the truths that we already know.

    Of course there ARE some people out here who would do this but they know one thing " If I tell the truth as I understatnt it and talk about the twenty five to thirty year set of problems that we REALLY have, I'll never get elected and I will have spent a lot of time, drained my health and probably caused myself (and my family) an untold amount of other grief

  • Report this Comment On June 01, 2012, at 5:50 PM, wolfhounds wrote:

    Looked at my SA list of posiible buys, and bought another 150 sh of TDC. First bought @16.83. I'm looking at adding to Coach, and VOD on Monday for the dividend. I've followed this approach since 1987. I've never been a market timer in the 30+ years of investing. But younger investors should learn to buy quality when their stomachs are churning.

  • Report this Comment On June 01, 2012, at 5:52 PM, tkell31 wrote:

    Stocks will drop further, but I'm hopping our idiotic govt doesn't go the QE3 route. It doesn't work, it will never work, but we need inflation badly to devalue our debt so I'm guessing we will have 3, 4 and 5 if necessary to get inflation up to 4% or more. Of course no one wants to acknowledge the antiquated economic system we have will never work again since supply far exceeds demand and always will going forward thanks to improvements in technology.

  • Report this Comment On June 01, 2012, at 5:58 PM, PALH wrote:

    The administration bandaged the gaping wound left by the previous administration but the obstructionist Congress made sure the transfusion was half what it needed to be to replace all the blood lost. Now they want to start hacking off limbs.

  • Report this Comment On June 01, 2012, at 6:03 PM, frogburger wrote:

    Across the entire Western world, it's time to realize the failure of governments. Maybe it's time to let individuals handle their own business.

  • Report this Comment On June 01, 2012, at 6:16 PM, ravens9111 wrote:

    The house of cards will come down very soon. The truth is that Greece leaving the Eurozone will spark a Lehman like event. The market could easily test the '08 low if this happens. Then, attention will go to Spain, Portugal, and Italy. At that point, the EU will have to do something just like Bernanke did when AIG and Merrill Lynch were bailed out. The only question is can the ECB and EU do anything to prevent the contagion? If they don't solve the problem willingly on their own, I'm afraid the market will force them do it only after a complete disaster. In my opinion, this is just the beginning of the real storm. I would stay in all cash. Don't lose all your money by holding, hoping the market goes back up just like in '08.

  • Report this Comment On June 01, 2012, at 6:21 PM, rma1344 wrote:

    When Greenspan talks about the contagious nature of the European crises it's scary. All govts are over leveraged and all banks have worthless real estate loans. The EU can't bail out the banks like we did here and like china can do. But the bail outs will eventually create inflation. The EU problem has no solution with the tools at it's disposal as it's now structured. It can't print money or issue debt like we can do and have done. It's ironic that our debt is so cheap in spite of our massive leverage and it's only because we are the best of the worst!

    I don't see our congress having the will to do anything about our fiscal problem unless perhaps we have a republican president and congress. Even then it could be very painful for years.

  • Report this Comment On June 01, 2012, at 6:31 PM, rojostyle wrote:

    Not one comment was worthwhile. They reminded of the guys I work who talk to themselves all day.

  • Report this Comment On June 01, 2012, at 6:32 PM, frogburger wrote:

    It's not those countries. You can add France to the list and Japan.

    Check this chart on a French site

    http://institutdeslibertes.org/

  • Report this Comment On June 01, 2012, at 6:32 PM, frogburger wrote:

    Meant "not just those countries."

  • Report this Comment On June 01, 2012, at 6:37 PM, frogburger wrote:

    All of that reminds me the time before the French and American revolutions.

    Both of them started because of taxes. The French got pissed that Louis increased taxes b/c France was in a serious debt crisis.

    What do we see from our governments? The same mindset. They piss our money away then they come back to us to tax us. At some point we won't have much left and the ballot box won't be enough.

    Obama set expectations very high for the fools who expected something from a politician. The next president if it's not him will have the same expectations. If he can't fix it, we're in trouble.

  • Report this Comment On June 01, 2012, at 6:48 PM, bearbitten wrote:

    palh, he had a democratic congress for 2 years.

    Sure bring on the stimulus, it has worked SO well in the past, Ivory tower thinkers have all the answers. Wrong answers but we are stuck with them.

  • Report this Comment On June 01, 2012, at 6:52 PM, hemifan426 wrote:

    The stimulus's all have been a dismal failure and have only contributed to the deepening of the depression that the world is in. Until the real issues are dealt with, the decline will continue. Oil is out of control, the national debt is impossible to pay off, the dollar is plummeting and we have a communist/muslim treasonous president. Bailing out businesses that were run poorly and needed to fail only made the situation worse. Until oil is roped in, jobs come back to America, the debt is dealt with, the 30% real inflation (adding back in the numbers the government "adjusts" out) is stopped and the bankers and president are prosecuted for their crimes, the problems will continue and deepen as they have been.

    We need deep DEFLATION, a word the financial community cringes at. Wages continue to decline and inflation continues to eat at real spending power in the economy. Prices are simply to high for the average consumer. If there are no jobs and prices continue to rise as incomes fall, the depression will only deepen. Oil is a huge issue and most of the worlds oil company exec's are corrupt and seemingly immune to prosecution for the price fixing and collusion they are committing.

    I have to laugh at the articles I read about the economy improving....I have started to call this current depression the "denial depression". Deal with the issues and the economy has a chance, don't and is doesn't. Governments will fall and the people are caught in the cross-fire.

  • Report this Comment On June 01, 2012, at 7:04 PM, FutureMonkey wrote:

    Gee I wish the economy was so simple that we simply had to push a "grow faster" or "grow slower" button or flip the "add jobs lever" and the economy actually followed a predictable response.

    Some parts of the economy are doing great, others are slower. Jobs numbers weakened in May, but are much better in aggregate. Retail numbers are up YoY, but maybe thats because 2011 was bad.

    I don't get too hung up on short term data, a bad day or month in the market. And I don't play the blame game. For investing purposes, I'm buying more every month and don't plan on spending it for sometime. I'm happy as a clam to see DOW pulling back from 13000 closer to 12000 More for me.

    FM

  • Report this Comment On June 01, 2012, at 8:49 PM, lwbaum wrote:

    Why do some of the people commenting here say that the US federal stimulus was a failure? It was rather small relative to the size of the economy, and economists generally conclude that it modestly increased GDP relative to what it would have been without stimulus.

    Meanwhile, US state governments have been cutting spending, which counteracts the effects of the federal stimulus. Also, Europe is not growing, which dampens US growth.

    More stimulus from government spending worldwide would help us climb out of this recession. Of course, the spending should be on important things, and there will be debt created, which should be repaid during times of growth, like we had before 2008. The US federal surplus in 2000 should have been maintained by high taxes and low spending while the economy was growing nicely. The EU should do the same: requiring countries to have federal budget surpluses when growth exceeds the average of the last 30 years, and deficits when growth is below the average. Then governments could help stabilize economies (countercyclical) instead of exacerbating the booms and busts (cyclical).

  • Report this Comment On June 01, 2012, at 9:14 PM, Greathighway wrote:

    I can't believe that folks don't get that the stimulus packet actually worked and was too small. Has anyone looked at the auto segment and the impact there. Neigh sayers want to blame anyone and everyone (big government) but knowing what the "W" years lead to what is the alternative but to tank like the Euro's? Erdmann is right on this subject and all of us without a Nobel price might want to listen up.

  • Report this Comment On June 01, 2012, at 10:08 PM, foolstore43 wrote:

    We are all screwed deficit spending will continue till it consumes us.

  • Report this Comment On June 01, 2012, at 10:27 PM, WiseChoice4u2 wrote:

    The stimulus really helped both Canada and Mexico. I live in Mexico. Lots of jobs here but they don't pay much 1/8th of the USA wages. The wages in the USA and Europe have been way out of line with the new economy. The US economy will have to go back to the 70s which I lived through very well. Since then we have just been out spending our producing on both sides of the Atlantic. We need to get reasonable and not expect that three cars in the garage (which aren't paid for), a house twice as large as we need, major vacations flying around the world, and a cottage at the lake or a summer home are what we deserve. Let's get back to work. Create a job.

  • Report this Comment On June 01, 2012, at 11:10 PM, ryanalexanderson wrote:

    hemifan wrote:

    > ...and we have a communist/muslim treasonous president.

    You had one or two good points in your post. Why ruin it with this ludicrous garbage? Do you even know what "communist" means? And aren't you even slightly ashamed about your bigotry towards an entire religion?

    And do you honestly think that things would be sunshine and roses under John McCain and Sarah Palin right now?

  • Report this Comment On June 01, 2012, at 11:48 PM, geraldas wrote:

    Ron Paul has a plan to RESTORE AMERICA.

    Go to: ronpaul2012.com .

  • Report this Comment On June 02, 2012, at 1:11 AM, BOND66 wrote:

    The remark that we need a Republican in the White House is a joke! Remember Bush? He got us into the mess we are in now.

  • Report this Comment On June 02, 2012, at 4:52 AM, bigmosickle wrote:

    There may never be a cheaper time to rebuild/repair the roads, bridges, etc. than now. It has to be done some time and commerce CAN NOT continue without an adequate infrastructure. Wages and borrowing costs are as cheap as they will ever be; equipment is sitting idle just rusting away - how short sighted not to see this as necessary maintenance of America. Who else will do this other than the Government? Rant all you want, but when the 'roof has leaks' you can fix it or sit with rain falling on your angry head.

  • Report this Comment On June 02, 2012, at 8:02 AM, SAMSCREEK wrote:

    BOND66,

    Actually, you need to place the blame on Obama

    just as well as Bush. Obama was an attorney for

    the ACORN organization that threatened to sue

    the federal government if it didn't relax the standards for lower income people to buy a house.

    That opened the flood gates for people to buy houses, that couldn't afford them

    When the Bush tax cuts expire at the end of this year, you will probably be the first one crying because you have to pay more taxes.

    This president needs to be sent home to Chicago

    or from whereever he is really from??? We need

    a new president and a congress that can function.

    Maybe the good ole USA will get lucky in Nov.

  • Report this Comment On June 02, 2012, at 8:35 AM, marei wrote:

    Remember the classic definition of insanity: Doing the same thing over and over again, expecting different results.--Tom Reilly P. S. I'm referring to the Repubicans!!

  • Report this Comment On June 02, 2012, at 10:07 AM, talan123 wrote:

    @SAMSCREEK

    Those poor people had nothing to do with the financial crisis. What happened was the banks stopped checking in on the people who were making the loans, you can see on mortgage slips that the same person signed the same loan papers in three different places. The mortgage lenders had fraud rates, as literally writing down the wrong numbers on purpose behind the client's back, exceeded 80% in some areas.

    Blaming ACORN and President Obama for this is beyond childish and just plain wrong.

  • Report this Comment On June 02, 2012, at 10:42 AM, Gorm wrote:

    Keynesian tools ARE ineffective in a credit recession. 1) Americans are mired in debt, coming off a credit binge. 2) Housing is still slipping, a key reflector of wealth and well being. 3) Adjusted for inflation, household income has fallen every year since its peak in 1999 - as America tries to retain its standard of living. 3) 15% of Americans are considered POOR with another 20% FRINGE POOR. 4) Job stability certainly looks doubtful. 5) Banks are accommodating ONLY the most pristine borrowers and demanding equity in durable purchases.

    Bottom line, the supply and cost of money is NOT the issue. Americans welcome more DEBT about as much as downing a second Thanksgiving feast WITHOUT digesting the FIRST!!

    In a world driven by ever increasing consumption, JUST WHO is doing future consuming with so much of our world economies mired in DEBT??

    QE3 is the totally wrong Rx!! Ready for currency wars as every country manipulates its currency to hype exports!!

    Gorm

  • Report this Comment On June 02, 2012, at 5:54 PM, nmartell22 wrote:

    Really not sure how Bernanke is going to react to this news - any upcoming Fed meeting minutes are going to have a huge impact on markets I bet. Found a great piece on MarketSnacks.com that explains all about the Friday jobs report and how it affected Wall Street in a clear and short article (tossed in the link below).

    http://marketsnacks.com/2012/06/01/us-adds-only-69000-jobs-i...

  • Report this Comment On June 02, 2012, at 6:34 PM, altrue1090 wrote:

    The real cause of the US and world recession is the aging baby boomers. 70% of the economy is based on consumer spending and older people don't need to buy houses, cars, furniture, refrigerators, etc. The cure would be to import large numbers of young, skilled, educated, immigrants from China, India, and Brazil who could fill the high tech jobs that are open, and consume.

    Democratic party stimulus is a temporary benefit to the economy. Republican party spending cuts will lead to Depression.

  • Report this Comment On June 03, 2012, at 12:37 AM, burrowsx wrote:

    In fact, the 1.2 trillion dollar stimulus plan of 2009 was sabotaged by Republicans and Blue Dogs in the name of austerity to 0.7 trillion. What little stimulus that was left in this expenditure ironically went to tax cuts that amounted to a Big Mac every day for the average middle class worker -- instead of being used to fund additional jobs in the private sector, investing in new infrastructure and technology, or saving jobs in the process of being eliminated by state and local government tax shortfalls.

    What was passed instead of true stimulus was a Neville Chamberlin program of appeasement for the very aggressors who had invaded the public's financial Czechoslovakia. I had expected a program of stock manipulation to force the market down in August (in time for the political nomination conventions). But the banking crisis in Europe -- a Pollyanna consequence of the American Bush League Real Estate crash -- gave manipulators a chance to start their manipulation even earlier.

    The German insistence on austerity is a simple calculation that the euro reduces the price of German goods from what it would have priced as a separate mark-based currency. The more euro governments come close to collapse without leaving the euro, the cheaper the euro becomes, and the easier it is to sell German goods. Germany wins both by encouraging their banks to lend at ridiculous rates, and by selling their goods at manipulated levels relative to the dollar, the yen, and the renminbi. Get realistic, conservatives. Just what are you preserving a high priced dollar for with your austerity?

    Obama has engaged the game of currency manipulation chicken, where Clinton and both Bushes would not. The Chinese have responded several times already, by floating their currency in response to our deficits. The Germans are determined to drive off the cliff while Obama's quick reflexes echo James Dean's move in "Rebel without a Cause." If Germany and China will not respond to reason, they will respond to watching their investments become worthless.

  • Report this Comment On June 03, 2012, at 4:05 AM, nrmm9 wrote:

    The US is in an enviable position and can take advantage of an unbailable set of circumstances. Unfortunately it won’t, and will squander this opportunity in an election year. The world is prepared to loan you at lot of money for free, because of your safe haven status. Take a lot of it, about a trillion, and fix up the infrastructure. This will get Americans back into work and position the country for the future.

  • Report this Comment On June 03, 2012, at 11:42 AM, chumchingee wrote:

    The housing foreclosures could be solved. I would pass unemployment insurance on any risky loan. I would put an option that gives a person the right to a nine month extension of a home loan in the event of unemployment. At the end of 90 days, the property owner would have the option of selling the house. The extension would allow people to live until they could get back on their feet. If they are unable to, then it gives them breathing room to reorganize their lives.

    Your next Lehman is Morgan! It is time to place risk rules on all the big gamblers in banking.

    If you want a long term solution we need new rules. What would attract money to the US? I think competitive interest rates that pays people to save money here.

    No matter what we do, there will be a depression world wide. So make money worth saving.

    I suggest that gold will go the way of Hunt's silver market in the near future. The game rule players will make it impossible for US Citizens to own gold.

    The government is not a business. The government has no idea how to get out of the mess we are currently in. The people in charge will try anything to get out of this mess.

    I find it ironic that Mr. Romney made his money by salvaging bankrupt businesses and selling off all the assets. Is that the master plan for a near bankrupt US Government? We might see soon.

  • Report this Comment On June 03, 2012, at 12:02 PM, chumchingee wrote:

    The only long term solution is to recreate our business community so that it is competitive with the rest of the world.

    China has created this situation and we readily enabled them. The situation is goods subsidised by the Chinese currency being undervalued. No one can compete with a huge cheap labor force willing to steal patents and copy any goods you have.

    For instance, take Microsoft Windows. It is illegally on an unknown number of machines in China. No one can do anything about it. This is old news.

    Our World group leaders want no tariffs. Free competition! Well there is nothing free about destroying economies all over the world. And that is basically what the huge populations of China and India are doing to us and to Europe.

    One solution is to out compete China. How? Automation of all factories so that transportation costs make competition from China not possible.

    I would bet money that China would not allow competition if it was not in their favor.

    Currency exchanges are what make all international businesses unstable. Take Bubble Bath as an example. A few years ago it was at 3.50 a bottle. Then the currency went down in value. Suddenly it was at 5.50 a bottle. Except bottles produced locally in the country. They did not go up. The competition almost put the international producers from Mexico out of business because they could not compete with locally produced goods.

    That is the fate of all internationally produced products long term. When the currency breaks it will make local goods more feasible. The question becomes: Who will own the locally produced businesses?

  • Report this Comment On June 03, 2012, at 12:11 PM, FutureMonkey wrote:

    Graph GDP in USA vs UK, Eurozone and ask yourself what worked better -- austerity or support. I'm happy to be in business in America. We aren't perfect, but we aren't in as much trouble as Europe thanks to the Keynesian voices that won the day in 2008. Instead of being grateful to the Federal Government that bailed out our state governments and our businesses, I keep reading baseless attacks.

    If we are in such poor position, somebody forgot to tell the American consumer -- confidence is up, retail sales are up, automakers are moving product. Broadly

    coroporate profits are booming, productivity continues to grow, and margins are expanding. We have a single digit unemployment rate that is 1/3rd of several large economies in Europe, most of jobs have been growing in the private sector while public sector spending and jobs are flat to shrinking. Isn't that exactly what we have been asking for - low taxes, private sector wealth, shrinking government?

    Quit gripping about 2007-2008 stimulus actions. They functioned impefectly but more or less as designed. Imagine if the flow of capital into the private sector had actually resulted in hiring! The impact on our national debt is already fading to inconsequential relative to ongoing wars, medicare, and tax policy decisions. We can't abruptly change our deficit spending overnight without a serious shock to the system, nor is it necessary when people are willing to lend us 100s of billions at 2% or less. We don't need to raise taxes or cut spending, we unwind slowly and carefully while growing modestly.

    FM

  • Report this Comment On June 04, 2012, at 7:08 AM, nmartell22 wrote:

    This MarketSnacks.com article sums up everything that happened last week on Wall Street, what to expect this week and has some cool financial news links too - the entire thing is clear, interesting and short.

    http://marketsnacks.com/2012/06/03/the-best-damn-wall-street...

  • Report this Comment On June 04, 2012, at 4:27 PM, pauldelang wrote:

    More stimulus is not going to help and the reason is simple. People with savings invest. People maxed out on overdrafts and credit cards have no money and they can not afford to borrow more. Intead they are totally dependant on low interest rates just to survive. And this is really dangerous. When you have to have low interest rates to stop people from defaulting on their debt no amount of extra debt - not even from government side is going to assist these people to invest in anything. And a government hell bent on borrowing / creating money to stimulate something which is not in a position to be stimulated, just create more problems. Instead you now have people in debt and a government in debt. This is a systemic problem.

    The other day I read an article that stated that 500 000 chinese factory workers are to be replaced by a million robots. It hit me like a hammer between the eyes. If a lowly paid chinese worker who earns a dollar per hour can not hold his own against a robot, how is a American worker who earns $10 per hour going to compete against a robot? And robots don't buy houses or Iphones or cars. Who is going to buy the stuff manufactured by these robots. I came to the conclusion that for far too long the supply side of the equasion was and is being over stimulated but nobody is taking care of the demand side. Just as the supply side is crucial to the economy so is the ability of people to purchase the goods and services being manufactured.

    So it boils down to this: People with low or no income has to purchase the stuff manufactured by robots. Or in other words, The captains of industry want unemployed or under employed people to purchase the goodies manufactured by their robot stuffed factories. This makes no sense. At some stage something has got to give.

    Cannot the smart people and the captains of industry see this. And I don't mean unions need to protect the unprotectables or that labour need to organize. It is just a simple equation that needs to be balanced.

    Not unless consumers' income problems are addressed will this world begin to right itself. No amount of stimulus or more cheap debt is going to solve the problem. People earning a decent income with surplus savings will solve the problem.

  • Report this Comment On June 07, 2012, at 12:58 PM, StopPrintinMoney wrote:

    Looks like we're heading towards another recession (quite frankly we never covered from the one that started in 2007)

  • Report this Comment On June 09, 2012, at 7:53 PM, bobbyk1 wrote:

    Pauldelang hits the nail on the head.Consumption drives the economy.Raising the minimum wage would an answer to explore.Just remember it was Henry Ford who raised employee wages so they could afford to buy the cars they were creating.The lame argument about fast food resturants doesnt ring true.

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