Freepers, don’t pass up the gains in the stock and real estate markets that we will probably see for a while. The long term implications of the garage coming out of Washington will take a little while “cook”. I’d stay away from long treasuries, though.
Business crave certainty above all else. A sense of certainty encourages business leaders to take on risk, uncertain causes a “bunker mentality”.
Everything the 0 regime is doing is causing uncertainty in the minds of private business. No amount of easy credit will get them to borrow if they are uneasy about their ability to pay it back eventually. Cap and Tax, Health Care, the hints of coming war taxes etc all cause Business to fear it will be saddled with ever increasing Government imposed costs in the years to come.
To get business out of this bunker mentality the Government should simply let business keep more of it's own money by cutting government taxes and spending. A business that knows it is going to be able to keep more of the money it all ready has, rather then take on more debt obligations, is the best way to get business out of the “bunker mentality” it currently is in.
Ok, I’m setting myself up to being accused of huge paranoia but was this really just a spontaneous occurence with the economy or was it a weak economy that was pushed to the edge, conveniently before a crucial election, by someone (or those...) who had the means to influence the market? That is a question that has been floated out there for over a year and has yet to be answered...or doesn’t want to be answered...hmmmm...
"After?" I don't think it's over, yet.