The stock market has fallen today, with the Dow Jones falling more than 500 points. The employment outlook is bleak. ("The number of people claiming unemployment benefits new remained virtually flat at a high level last week, pointing to continued weakness in the U.S. labor market. New claims for unemployment insurance fell by just 1000 to a seasonally adjusted 400,000 in the week ended July 30, the Labor Department said Thursday. ") as the New York Times observed, the culprit was" intensifying the fears of investors about a slowdown global economic growth and concerns about the current debt crisis in Europe, which now focuses on Italy and Spain. "
When I asked the economist Douglas Holtz-Eakin's Action Forum of America on its assessment of our economic problems, spoke to investors returning to the Treasury (and out of the stock market) with the U.S. . Ceiling debt crisis resolved, the crisis of European debt growth and the realization that "Obama has a strategy for growth and employment." He says: "In short -. the absence of good news leads to a cumulative lack of confidence"
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