NEW YORK: Yesterday’s record intraday crash in the stock market was not a result of trading error (see video below). There are enormous pressures on our financial markets due to profligate spending by out of control governments. Greece is just the first to fall due to weakness in the Greek economy.
The US is not immune. Moody’s has issued three warnings to the US which could have severe repercussions if not heeded. The US has been able to stay behind Europe in the race to financial and social instability, largely because many of the socialist programs have not been implemented here as widely as in the EU, at least until now. However, the Obama administration is pushing full steam ahead in an effort to force the US to follow Europe’s bad example, an example we don’t want to follow.
It is our free market that has kept us out of trouble until now. Our productivity and hard work far outstrips Europe’s:
Let’s get real. There’s almost no comparison between the U.S. and Greece or other failed European states. By almost any measure, the United States has outperformed Europe for decades.
This is especially true when it comes to productivity, a fact that only now seems to be dawning on the people of Greece if not Europe in general. We have noted with interest that, from 2002 to 2008 alone, American productivity grew 28% — a rate 50% higher than among the 10 biggest economies in Europe.
From 1980 to 2009, real GDP per person — the best broad measure of both productivity and standard of living — grew 6% faster in the U.S. than in Europe. Sounds like a small difference, but it isn’t. In 1980, the average American produced just $4,500 more in GDP, after adjusting for inflation, than the average European. Today, the gap is $8,236 — and growing wider. Investor’s Business Daily
Yesterday’s intraday crash of 9% in just minutes set a record. As always there is always a rush to blame computer trading or some other glitch, anything to draw attention away from the underlying instability in the markets. Tom O’Brien of TFNN.com (below) makes clear that this was no trading fluke.
It’s time for hard-working, tax-paying Americans to wake up and fundamentally transform America ourselves. We need to throw out the career politicians who steal our money to buy votes from those who want a free ride at our expense.