Bad Economic News Sends Markets Plummeting

Thursday, June 02, 2011

Stocks plummeted Wednesday after reports that the U.S. factory sector experienced its biggest one-month drop off in May since 1984. Weak factory sector figures, combined with dreary manufacturing data from around the world, and continuing high unemployment doesn't just present a political problem for the Obama White House. Some economists worry the economy could face a "double-dip" recession. "Financial crises are followed by slow recoveries," says Kelly Evans, "Ahead of the Tape" columnist for The Wall Street Journal.


Kelly Evans

Produced by:

Posey Gruener

Comments [5]

Leslie Bravo from Bel Air, Maryland

I don't believe it was individual home ownership that caused the economic problems at all. I think that is what they want us to believe. It really was the Wall St. vultures stealing what ever they could as often as they could and the "Crisis" was just one more moment for them to be able to grab assets and they sure have grabbed. And they have chosen this moment to smash more unions, coincidence, I think not.
What sane country has it food and energy supplies tied to something like the stock market. Supplies that are essential for living should not be bought sold and traded. Get the commodity market and middlemen out of my grocery cart. Don't even get me started on the oil companies.
If you want to do something, take your money out of the bank and use credit unions. Take your money out of the stock market, it is a lot like going to Vegas or playing the Lottery, only the house wins.

Jun. 03 2011 02:12 PM
Anonymous from Pompano Beach, FL

Regarding Home ownership: My house is underwater by twice what it is now worth. Yet I continue to fight and ply Bank of America for a modifcation. I had a family medical situation which caused me to fall behind in the mortgage a couple of years ago; never had that happen before. The bank, putting it lightly, has ignored me. I filed Chapter 13 reluctantly; caused HUGE amounts of interest charges to be added. Now here in Florida, home prices need to be found with a microscope. But I fight on and the bank keeps pushing for the full it out, or I'll walk...Homeownership isn't what it was when I was a kids have already sworn off owning for a long time. That and watching their dad, uncle, and numerous neighbors and friends lose their jobs (and NOT been able to find another), over the last two's totally depressing. If there was anyway, which there wasn't, that I could have foreseen this twenty years ago...I would never have gotten married OR had children...this is their legacy and I cannot help them...

Jun. 02 2011 10:11 AM
Michaelrf from Methuen, MA

Dope slaps to the Republicans! Jared Bernstein, Joe Biden's recently departed econmic adviser put it very succinctly. We have to end the Bush tax cuts, and we can't cut spending now, it will end the recovery. Which is probably the Republican game plan to win the White House.

Jun. 02 2011 09:08 AM

So private "households taking on alot of debt" caused the crisis? So the solution is government taking on 14 trillion in debt?
Didn't government agencies for years encourage lenders to make risky loans and what role did Fannie and Freddie play in this crisis along with its enablers in Congress?

Jun. 02 2011 08:43 AM
Laura Solano from Medford, MA

Regarding homeownership: Owning a home freezes the cost of housing. As income grows, housing costs will decrease as a percentage of a household's monthly budget. Renters' housing costs are at the discretion of their landlord. I prefer to control my own financial destiny.

Jun. 02 2011 05:25 AM

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