The Economy Sours

The data keeps on getting a little worse. Today’s story is hidden within this report from MarketWatch:
U.S. stock end sharply lower as credit woes return

The real issue is the part about Wal-Mart. Few of us like Wal-Mart as a company: It is a terrible employer and damages small business wherever it goes. But it does provide middle America with a steady supply of cheap stuff. So when it starts to talk about a slowing in business we should take serious notice: middle America is beginning to hurt if it stops going to Wal-Mart.

Remember that consumer purchasing is two thirds of the economy, so a slow down there will inevitably grind the rest to a halt in the absence of really strong growth in things like business investment. Since there is a credit squeeze emerging courtesy of the idiots that make up the secondary market for mortgages the likelihood of strong investment is receding.

Consequently we look set for a bumpy rather than soft slow down. Maybe a recession? Unlikely at the moment, but getting more likely by the day.

What a way for the Bush regime to end its miserable existence. With a pathetic economic record to go along with its appalling failures elsewhere.

Has there ever been a worse president?