No, the market is falling on economic CERTAINTY.
It is a certainty that up to 12% of GDP is borrowed and that the borrowing must stop.
It is a certainty that Europe is in a state of economic near-collapse.
It is a certainty that US unemployment is and will remain persisent and pernicious and will not improve until this administration changes its vicious stance towards any sort of economic activity that it does not control.
It is a certainty that GDP numbers have been inflated by over 2.5 points since 2007 as recently revealed by the BLS.
The market understands that this rogue administration of economic vandals, idealogues, and juvenile delinquents will only seek to strengthen its grip on its preferred forms of non-reality as the 2012 elections appraoch.
In my ten plus years of trading and watching the market, there has rarely if ever been more certainty. The certainty is that the economy is following a path based upon malinvestment, misdirection, cronyism, and the deliberate attempt by the administration to impoverish the citizenry so it can buy their support with any number of welfare programs and wealth confiscation schemes.
The problem with that kind of certainty is that it compels companies to keep their money on the sidelines instead of putting it to work. News has been saying for a while now that there are trillions of dollars parked and not being used by American businesses.
They can do that for a while.
There comes a point, though, where the economy gets so bad that parked money loses value, either because interest rates go up or because investments tank. (As they did today.)
If nobody is winning, then nobody is earning and nobody is growing.
that’s very true.
uncertainty was actually better - the market was flat with slow increases here and there while were uncertain.
Now we most certainly understand that we handed our government over to marxists.
The certainty of THAT is much worse.