From Bullish to Bearish in a Flash!

By Gerard Lameiro

The stock market crashed! The market went from bullish to bearish in a flash! The Dow was down about 1,000 points at one point during the trading day, closing at about 347 off for the day. All 30 Dow component stocks were down, Bank of America was down around 7%. What happened? Why so fast? What's going on?

Those who run the market will likely check for technical or programming glitches. These might be a contributing factor. But, it appears that the larger issue is simply FEAR. But fear of what? Fear that the problems of Greece will spread to Europe and to the rest of the world, including America. Ultimately, it's really a fear that welfare state socialism will lead to economic bankruptcy. In my book, America's Economic War, I wrote several times that socialism always leads to economic bankruptcy.

Greece has been spending way beyond its capacity to create new wealth. Greece's debt is a staggering 113% of its GDP! According to a recent article in The Wall Street Journal, "Greece's predicament - like New York's and California's - is signaling loud and clear that the spend-and-tax economic model has hit the wall." [more...]