Market Madness

As you know, Wall Street was shocked by Friday’s report that job creation fell far short of expectations. In addition, the unemployment rate, which was supposed to remain flat, jumped by 5%. The effect on the markets was dramatic. Tech stocks, the most vibrant part of our economy, were hit the hardest.

That rout continued today. This morning, the market opened with massive losses. The Dow Jones fell as much as 1,200 points and finished with a loss of 1,033 points. The Japanese stock market fell 12%, the Nikkei’s worst day in 37 years.

The bottom line is that there are storm clouds in the markets, and no one understands why.

At the same time, multiple countries, including Britain, France, and the United States, are telling their citizens to get out of Lebanon any way they can. An attack against Israel by Iran is believed to be imminent, and Hezbollah in Lebanon is expected to participate in the attack.

You can make a strong case that all these threatening headlines are the direct results of Biden’s policies.

His runaway spending that massively increased our debt resulted in an explosion of inflation, which has crushed family budgets everywhere. That necessitated a rise in interest rates to deliberately slow down the economy. Many experts believe the Federal Reserve kept interest rates too high for too long, and we may now be on the way to a recession.

Professor Jeremy Siegel, who is almost always upbeat on the stock market, is so concerned that he said on CNBC this morning that the Federal Reserve needs to hold an emergency meeting now to announce a 0.75% cut in interest rates and do it again in September. He believes we are on the cusp of an economic disaster.

On the geopolitical scene, Biden has consistently projected weakness, as we have regularly outlined in this daily report. The disastrous retreat out of Afghanistan. Allowing a communist Chinese spy balloon to fly over the country. The failure to rebuild America’s military as we face multiple threats all over the world.

We are living in a very dangerous time in a very unpredictable world.