June stock drop worst since the Great Depression
Stock Market Drops to Lowest June Numbers Since Great Depression
Political Perspective by Tim King Salem-News.com
(SALEM, Ore.) - It is sure going to be interesting to watch what happens in this country over the next few years. Stocks on Wall Street tumbled today, sending the Dow Jones Industrial Average to its worst June since the Great Depression. Record oil prices, credit-market writedowns and a slowing economy increase the likelihood of a yearlong profit slump.
Americans have allowed corporate business to completely undermine the nation's economy, and our slow progress at turning toward natural and renewable sources of energy are likely to haunt us for many years to come.
All too many people in the U.S. live on credit card debt, always diversifying and borrowing from one line of credit to take care of another. What would happen to these people if the banks suddenly call their loans and stop providing credit?
Food prices are surging and the cost of oil based fuels like gasoline is out of hand to the point that people are frosted when looking for answers in this land that is turning colder by the second in terms of economical success.
For those who have stood shoulder to shoulder in recent years, denouncing the GOP politics that have led us from a balanced budget under President Clinton to a land teetering on the brink of total financial disaster... it is doubtful that having been right all along will mean much. For some, the fact that America abandoned its rightful ideals and "went with Bush" was something that they never would have predicted, or forget.
Missing the Mark
It is equally interesting to note that antiquated federal laws that prevent farmers from cultivating Cannabis or marijuana alone, are likely contributors to our national financial crisis. After all, this is a land where thinking out of the box can lead a business person to prison.
But for those growers who stay out of the federal spotlights, there are probably many fruitful years ahead. Authorities in Oregon frequently tout the latest "pot bust" but in reality, they are simply jailing people for non violent crimes and it does not help our economy. The authorities refuse to recognize that it matters, and each time they sweep a few thousand plants in places like the Willamette Valley and southern Oregon, they take a significant toll on that region's economy, legal or illegal.
Nothing is gained under the current laws, and your tax dollars and mine pay for the very lives and existence of people charged with marijuana crimes, once they are incarcerated. Marijuana was outlawed because two American companies, Dow and DuPont Chemicals, wanted to introduce synthetic rope on the marketplace and they had to get rid of the world's strongest natural fiber in order to accomplish that. Therefore, marijuana was villainized and demonized with propaganda and the rest is history.
I fail to see how locking up people for growing a natural plant benefits this society, especially when that plant has the ability to replace so many unnatural products today like rope, medicines, clothing, even building materials and an endless list of things the hemp or marijuana plant potentially generates.
Falling to Record Lows
In the meanwhile, investors are pulling back from the stock market and groups like General Motors Corp. are taking the big hit, plunging farther than ever during the last three years, as Goldman Sachs Group Inc. advised selling the stock and crude rose by $5 a barrel.
Bloomberg reports that, "The Standard & Poor's 500 Index plunged 38.82, or 2.9 percent, to 1,283.15, its biggest drop in three weeks. The Dow decreased 358.41, or 3 percent, to 11,453.42, its lowest since September 2006. The Nasdaq Composite Index sank 79.89, or 3.3 percent, to 2,321.37, its worst loss since January. Almost nine stocks fell for each that rose on the New York Stock Exchange."
Citigroup Inc. is approaching a 10-year low as Goldman Sachs said the lender may report an $8.9 billion second-quarter charge and cut its dividend. The manufacturer of the Blackberry, Research In Motion Ltd., posted its biggest drop since 2001 on concern competition with Apple Inc.'s iPhone is reducing earnings.
Bloomberg also reports that company earnings in the S&P 500 slid an average of 18 percent in the first quarter. Analysts are projecting an 8.9 percent profit drop this quarter, according to a survey conducted by Bloomberg last week.
The Dow itself, has slumped 9.4 percent this month. That is the worst June since 1930 during the Great Depression, when an 18 percent tumble was experienced. Long story short, nearly every company has posted losses in the month over the surge in oil prices, and the rate of unemployment is the highest since 2004.
It isn't good news but it also is not unexpected. Things are going to continue to tighten up and Americans are reminded that sometimes it is better go liquidate early, especially real estate, rather than just watching it move toward eventual foreclosure.
Recall that earlier generations faced down fascism and communism not just with missiles and tanks, but with sturdy alliances and enduring convictions. They understood that our power alone cannot protect us, nor does it entitle us to do as we please. Instead, they knew that our power grows through its prudent use; our security emanates from the justness of our cause, the force of our example, the tempering qualities of humility and restraint.
-President Barack Obama, 1st Inaugural address