Stock Market Plunges - All 2011 Gains Lost

By Douglas V. Gibbs

The Dow Jones nosedived more than 500 points today - erasing all of the gains in 2011.

This is the single worst day the stock market has experienced since the 2008 drop that some consider signaled the beginning of the financial crisis.

In fact, the Dow's 512 points drop is its ninth deepest point drop ever.

Investors are realizing that the stimulus was a failure, and with this latest budget boondoggle, the spending will continue to rise and rise and rise. Coupled with the high unemployment numbers, the uncertainty caused by the failure of the Democrat Party's policies has worried investors.

We are being told that we are now borrowing 100% of our GDP. We have joined the ranks of the European nations that are collapsing economically, and have been forced into implementing austerity measures, yet the Democrats want to spend more!

And that is the crux of our problem - the damn spending!

We are at $17 trillion.

This is nuts. How is this moral? How is it reasonable to spend and spend and spend, and then toss the crappy economy and the total bill on the laps of our kids and grandkids?

If we were following the Constitution to the tee, our spending would be at about 5% of GDP.

The Constitution does not authorize this kind of spending. . . for a reason!

If we don't stop spending, the economy will collapse.

So, why the plunge of the stock market? Why are people selling in a frantic manner?

This is a repudiation by the investment community that the budget bill failed to reduce spending.

Yes, yes, I was told there is two trillion in spending cuts. . . read the bill carefully. There is no reduction in spending, only a promise to spend 2 trillion less than promised over the next ten years - and the bill can't hold future Congress' to that.

This is what Obama wants. Crisis, as Rahm said, gives the Democrats more opportunity to do things they couldn't do normally - and it gives them the chance to start pointing fingers.

-- Political Pistachio Conservative News and Commentary

US borrowing tops 100% of GDP: Treasury - AFP, Yahoo News

US Stocks Tumble,Sending S&P 500 Briefly Into Correction Territory - Wall Street Journal

U.S. eats up most of debt limit in one day - Washington Times