eagleseven
Quod Erat Demonstrandum
How does the public respond to uncertainty? They stop spending and stop investing, out of fear. A nation that does not spend nor invest, cannot grow.RealClearPolitics - Obama Economy Sends Americans to Their Mattresses
Home mortgage interest rates are the lowest in history, but house sales are plunging. Banks can make money easily because of the Federal Reserve's low interest rates, but they're not making many loans. Major corporations are sitting on something like $2 trillion in cash, but they're not investing.
Unemployment is running at 10 percent, rounded off, for the 11th straight month, but few employers are hiring and a million people have stopped looking for work in the last year. Small-business hiring is at a nine-month low, and retail sales are tailing off.
Government policies designed to stimulate the economy seem to be having the opposite effect. Consumers aren't buying, businesses aren't hiring, and those fortunate enough to have some cash on hand don't seem to be investing.
I call it the mattress economy.
People seem to be following this investment strategy. Step one: Go to Mattress Discounters and buy the biggest mattress you can find. Step two: Take it home, and stuff all your money in it. Step three: Lie down, and get some rest.
What is causing this uncertainty? President Obama's endless series of befuddling "comprehensive reform packages" and disregard for the national debt, of course.