Despite the overall improvement in the market, I’m still having a hard time understanding how the economy can foster genuine, sustained growth. Consider the number of ill winds kicking up:
First, there’s the multibillion-dollar cloud of belated “robo-signed” foreclosures that are about to hit our fragile real estate system. Then, you’ve got the donnybrook Congressional environment taking up arms again in March when the stop-gap payroll tax cuts expire. There’s also the “gloves off” Presidential campaign that is quickly picking up speed, which you can count on to essentially stall all vital and necessary legislation until 2013. Finally, there’s our Federal Reserve, which has few to no arrows left in its quiver to address another economic downturn.
So let’s enjoy this period of optimism while we can. The soaring national debt has reached a symbolic tipping point, and it won’t be long before the market must confront this reality. Read