The red ink flowed on the stock market today as the Dow Jones Industrial Average fell 280 points, more than 2% to start the month of June. The sell-off began after a dismal jobs report from ADP went public, showing very weak job growth in May. So-called experts were expecting about 175,000 jobs created in the private sector, but the ADP showed only some 38,000 new jobs. Together with other recent reports of an anemic housing sector which may not recover for another 5 years or longer, and new lows in consumer confidence, The Dow and NASDAQ were hit hard. Other indexes such as Standard & Poor′s and Russell also showed losses in excess of 2% today, indicating that nearly 90% of all sectors declined.

stock market today

The bad news came on the day that House Republicans met with Anti-President Barack Obama to discuss the debt ceiling and the 2012 budget. Obama feebly flaunted his own budget plan which would add some $12 Trillion in new debt over the next decade, even though his budget was voted down in the Senate 0-97. Yesterday the House voted on a ‘clean’, up-or-down bill to raise the nation′s debt limit. The measure failed as expected, 97-318, with some 82 Democrats joining Republicans to defeat it. The message to Obama is clear, spending cuts must be connected to any new bill to raise the debt ceiling. Congressman Paul Ryan, whose 2012 budget plan might just save America from Obama, received a standing ovation by GOP members at the White House, making Obama cringe.

Now more than two years into the so-called recovery, the economy appears at the brink of sliding into a double-dip recession. Some would argue that it has already started. The stock market today reacted to the series of bad news, especially the dismal ADP jobs report, with the Dow Jones Industrial Average and NASDAQ dropping more than 2% in a single day. The economic policies of Barack Obama have been an utter failure, pumping trillions of borrowed money to prop-up an economy which should have been left to market forces. Sure, the first year would have been nasty, but once a genuine bottom was reached, the economy would have rebounded. Instead, Obama is making the Great Recession last far longer than need be, and dooming the country with massive debt in the process.

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