After yesterday’s grim housing news the markets have taken a dive. Will the DOW hold the psychological 10,000?
Despite the Fed keeping interest rates at historical low rates, home sales have dropped 27%. That is the largest drop since the Johnson Administration four decades ago. This news rocked the markets causing sharp falls. Today, the DOW is struggling to hold 10,000.
Vice President Biden is not worried about all of this news, publicly at least. Responding to Republican Congressman John Boehner’s call for Obama to fire the members of his economic team that have not resigned already, Biden sarcastically said that’s “very constructive advice and we thank the leader for that.” From Swamp Politics:
Instead, Biden made the case that voters should not hire Republicans this fall.
“For eight years before we arrived in the West Wing, Mr. Boehner and his party ran the economy literally into the ground,” he said. “We’ve seen this movie before, Mr. Boehner. We’ve seen it before and we know how it ends.”
Biden also defended the administration’s plan to let tax cuts expire for the highest wage earners, while extending others for the middle class. To the charge that these decisions would hurt small businesses, the VP claimed it would affect only a minute percentage.
“It’s a Wall Street tax cut, not a Main Street tax cut,” he said of the expiring law. He also attacked Republicans for blocking in the Senate a planned $12 billion tax cut that Democrats had offered.
Biden conceded that the economic recovery was not proceeding as fast as the administration had hoped, but claimed there was “no doubt we’re moving in the right direction.”
Biden is apparently more optimistic than the rest of the country. Unfortunately optimism will not stop the crushing effects his Administration’s policies have had on the economy.