The market doesn’t look so hot the day after the White House revealed yet another spending plan, this one to fix 150,000 miles of roads, because that’s what’s holding back the economy. Oh, and those evil Republicans, the party of “no.” On this latest scheme, the GOP should be the party of “Hell No” because its $50.0 billion that could be used more efficiently. Then there is $200.0 billion for research and development and capital investments, which are harder to argue against, but not number one in terms of what could turn the economy around.
We don’t need the government to “pull us out of a ditch” as we have the wherewithal to do that ourselves. We just need the government to get out of the way and make it easier for the nation to drive itself out of its current predicament. The economy is spinning its wheels; it’s not out of the ditch but has the horsepower to peel out if the coast was clear. In the meantime, small incremental steps are being made, although I’m not sure if things like an improved shadow inventory are the result of the fact so many people have lost their homes already it can only marginally improve.
The market is also under some pressure from action in Europe, where those great vacation nations (I mean that in so many ways) continue to drag. There is also growing opposition toward austerity programs. The market needed a boost today; it hasn’t come from the latest economic rescue schemes.
Charles Payne is the CEO and Principal Analyst of Wall Street Strategies . This post was republished, with permission, from his company’s column, WStreet Market Commentary.