Originally Posted by Villages Kahuna

OK, you and Bucco don't like President Obama and won't vote for him. Got it!

Now, how do you feel about the people who actually spend the money, make the laws, create the regulations, and set the tone for how this country is governed...the 535 members of the U.S. Congress?

These are the people that by far have done the most damage to the U.S. economy and our reputation. As of this afternoon, the financial markets seem to agree. After watching the agonizing incompetence in Washington for the last month or so, the markets have de-valued all the stocks and bonds held in American's investment and savings accounts by about 10% in less than two weeks. That amount of lost wealth is a multiple of the amount that might have been paid if taxes on the wealthiest Americans were increased, unjustified corporate tax benefits eliminated and the tax code re-written. But one caucus and one political party refused to even discuss these possibilities.

Corporations are profitable and awash with cash. Individuals, those that have jobs at least, are in similar shape, with personal debt down and savings accounts up. But the corporations aren't investing and the individuals aren't spending. The growth of U.S. GDP is edging towards zero. There is nothing on the horizon that suggests that U.S. economic activity will do anything other than continue to loll around zero growth. That will lead us fairly certainly into a double-dip recession.

It's pretty clear that the Republicans will argue that this can be fixed by the private sector, even though it's not happening. And the Democrats will argue that more stimulus is needed, even though we can't afford it. Looks like another stalemate.

Why are corporations and individuals so unwilling to spend? The answer is quite clear--they have no confidence in the stability of the factors that effect the U.S. economy. Those things--interest rates, tax rates, regulations, new laws effecting business--are all in control of the Congress.

Oh, I'm sorry, I erred a little in what I said above. There's one segment of the U.S. population who are spending like there's no tomorrow--the wealthiest 1-2%. Their recent spending on luxury goods, fancy cars, jewelry and travel are at record levels. The retailers and companies who sell that stuff are also having record years financially. Is there something wrong with this picture? Wanna see how the "job creators" are living? Read this....

http://www.nytimes.com/2011/08/04/bu....html?_r=1&hpw

And where is our Congress? On a five-week vacation. They left without agreeing on funding the FAA, throwing tens of thousands out of work, bollixing up air travel and foregoing over a billion dollars in tax revenues until they get back, do their vacation show-and-tells, and maybe begin to do the people's work again.