Opinion editorial by WBZ NewsRadio political analyst Jon Keller
BOSTON (WBZ NewsRadio) — One news media habit that is always good for a laugh is the customary thumbnail explanation for a dramatic day in the stock market.
You know the drill – “the market rose today on the news of (blank),” or “the Dow dropped sharply as investors reacted to (blank).”
As if the decisions of millions of investors trading billions of shares could possibly be explained so glibly.
Still, when the experts at the Wall Street Journal offer informed speculation about what drove a market shift, it’s worth noting, especially when the economy is so crucial to the outcome of the upcoming election.
So here’s what the Journal claims has sparked an 840-point dive in the Dow Jones Industrial Average over the past two days: growing concern about “slowing US manufacturing activity that could presage a possible economic downturn.”
Uh-oh, that sounds ominous.
Apparently, a report on Tuesday showed US factory activity dropping to its lowest level since mid-2009, months into the Great Recession. Another study on Wednesday charted a slowdown in the pace of job creation.
Most alarming of all – consumer spending, the fertilizer that keeps our capitalist garden blooming, is slowing, and businesses are cutting back on investment as the sugar-buzz of the GOP tax cuts wears off.
Toss in the fallout from the ineptly-handled trade war, and it doesn’t sound good.
Maybe all that speculation is wrong.
Or maybe this election will play out against the backdrop of a serious economic slump.
You can listen to Keller At Large on WBZ News Radio every weekday mornings at :55 minutes past the hour. Listen to his previous podcasts on iHeartRadio.
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