The Markets

How low can they go? Many people, including myself, thought that the resistance level at 8,000 would hold. However, we admitted that if that level was breached, there was no telling how low it would go. Every single sector is getting hammered, with the possible exception of gold. While there has been evidence of the credit markets freeing a tad (the gap between the LIBOR and T-Bill rate has narrowed) the economy is still slogging along. Government spending is the current band-aid of choice. In my mind, until we relax taxes on the rich, yes the rich, and especially on businesses, the economy will not fully recover. It may stabilize, but it will not return to 12,000 type DJIA levels. Taxes on business and the rich, while on the surface appearing the pad the incomes of those who hardly need more of it, actually pad the incomes of those who need it the most. Let's face it, the tax cuts, aid money, and jobs created in public works in the latest stimulus packaged will help for a short time, but are not a long term solution. Business, small businesses in particular, are the true jobs and wealth creator in our economy. Freedom from cumbersome taxes and legal paperwork would give these businesses the chance to succeed, and would enourage more people to venture into them. I'd expound more, but it's late and I need some sleep. It is tomorrow. Goodnight.