Stupid People...

Stocks plunge anew as retail sales show steep drop

By TIM PARADIS • AP Business Writer • October 15, 2008


NEW YORK — Angst over the economy is sending stocks plunging once again. A disappointing retail sales report has investors convinced that the banking crisis has caused cracks in the economy well beyond the financial sector and that a recession, if not already here, is inevitable.

The Dow Jones industrials are down more than 500 points, more than half their huge 936-point advance from Monday, and all the major indexes are down at least 5 percent.

The government’s report that retail sales plunged in September by 1.2 percent — almost double the 0.7 percent drop analysts expected — made it clear that consumers are reluctant to spend amid a shaky economy and a punishing stock market. And the economy cannot grow unless consumers are spending.

Now I know this is nothing new at all and most of us are aware of what our 401k's are doing these days, but I have this grand illusion that the business sector is comprised of individuals who are smarter than me so I found some humor in this article.

"...made it clear that consumers are reluctant to spend amid a shaky economy and a punishing stock market. And the economy cannot grow unless consumers are spending."

Maybe this just seems too easy, but don't the consumers need money in order to spend it? Unemployment is up, wages are stagnant, credit is frozen.... You see where I am going with this? Wasn't this HUGE tax payer burden that was just passed supposed to free up the basket of credit so businesses could grow, so employees could have job security, so the little guys and gals have money to spend to lubricate the economy train that just flattened our life savings?

I hate to say this Tim but it will take more than congressional smoke and mirrors in order for the consumers to blindly spend what liquid assets we have left to keep this 401k pillaging beast rolling; maybe some of these CEOs and Business executives can go out and spend their fat cash, because I know my nest egg makes Ethiopian Children look plump...

Note: Yes I know everyone has lost money and dollar to dollar the CEOs might have lost more, but when you are making three more digits a year than the average American, I really don't think the average American can empathize with you having to sell a home or get rid of your luxury car.