Published on June 1st, 2012 | by tweetdrudge

STOCKS PLUNGE…

Things are looking worse and worse. Stocks suffered their worst day of the year after a terrible jobs report and some problematic data from China and Europe. It’s no surprise considering Europe’s fiscal health has been abysmal of late and is doing its darndest to bring the rest of the world with it.

Now what’s the solution? Obviously, according the the CNBC article, it’s more government. We need more Quantitative easing. That’ll make the bleeding stop…

I mean, strictly speaking, QE3 would make the bleeding stop if you consider a plunging market to be a problem. There are others, however, like myself, who believe that while a good ‘ol QE will definitely be a good way to stop downward volatility, chances are, it is not a good way to secure the economy’s long term health. And, unfortunately, we pay for these mistakes. Economies are frangible. They aren’t robust, self-healing entities, and once you make a decision about producing or deleting money, it’s not like you can just hit an undo button.

Life isn’t a Nintendo game after all.

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	Dow	12118.57	-274.88	-2.22%	-2.70%	-0.81%
NASDAQ	2747.48	-79.86	-2.82%	-3.17%	5.46%
S&P 500	1278.04	-32.29	-2.46%	-3.02%	1.63%
Russell 2000	737.42	-24.40	-3.20%	-3.78%	-0.47%
CBOE VIX	26.66	2.60	10.81%	22.52%	13.93%