Trembling Economy
by digby
Don't look now, but something is happening to the economy. The DOW is on track for the biggest monthly fall since February of 2009. It was off 3.6% today, down 376 points. The Nasdaq and the S&P 500 were even worse.
I don't know what it means. Lots of theories abound. Maybe it's the unexpectedly bad jobs numbers. financial reform bill. Maybe it's Europe. But whatever it is, with the jobs data today and news of rising foreclosures, it's possible that we are looking at a double dip recession. And that is very bad news in an environment in which the entire political establishment is fouling its trousers over deficits. Not that there's ever a good time to go back into recession but there really couldn't be a worse time than now. The administration has (stupidly) allowed itself to be backed into a corner in which it can't spend now that it's thrown in with Peter Peterson and the deficit scolds.
It's funny how rarely the Tinkerbell Strategy works, whether in foreign policy or economics.
Update: read this.