Economic concerns after huge loss in market
Where is our economy headed?
- Duration 3:55
- Date Oct 24, 2012
Where is our economy headed?
Also in this playlist...
This transcript is automatically generated
We'll bring out new concerns about the economy let's go ahead and take a live look at where the Dow is trading today it's not quite as exciting as it was yesterday and I say exciting an air quotes because really we saw.
The Dow down more than 200 points yesterday the biggest loss in several minds.
In fact listen to this US stocks.
Lost 500 billion dollars in just three days 500 billion dollars have been -- much attention to the markets right with everything that's happening in politics.
So what is is -- mean for our economy how can it impact the election is well Steve Moore is a senior economics writer at the Wall Street Journal.
And the author the book entitled.
Who's the fairest of them mall which is the question ironically that John act and south and may get everything.
I've seen congratulations and thank you.
Nasty about that in just a second with nine with the market.
You know every time Jana do you think this slumbering giant of the US economy is gonna start really picking itself up it it it falters again and that's I think what's happened this week you're right -- seen a 500 point decline and -- and the -- that the reason that's happened is because of these lousy.
-- -- reports of every company for 3COM -- You know to two companies like Xerox and and that's because people just aren't spending there's not going mountains -- What it one of the reasons that companies are getting from these results that are just not.
Hitting expectations what do they say OK so.
That American companies have done an incredibly great job of reducing the fat.
Sucking in their cuts getting rid of inefficiencies so they're just they're incredibly efficient right on the the problem is American consumers are going to the stores and shopping I mean we're still in this kind of climb out of fear.
About what the future holds I think part of this might be released when -- won the election is over.
Right now the you know that -- old saying in the stock market it's is driven by two emotions greed and fear -- in fear is the one that's the overriding factor right now.
Sending that we've heard over the last several years in fact when it comes to the economy is.
A finger pointing -- Europe you know the real issue here he is it -- -- were better it's it's more about your -- you're not always that.
That certainly Europe is dragged no question about it but bad -- the United States of America is the hub of the world economy and every other country as a spoke.
And I think actually the problem with -- -- China has actually slowed down a bit -- Is that the US economies are growing and the truth is.
The the rest the world can't grow we're not growing when we're growing at one point 3% that's just not enough consumer demand to throw the world economy.
We can't see -- statistics that seems to be playing college singing about I think he had a top claims other other choppy yet tend to show less people finance right claimants so that's why it's hard Dick predict where this economy is headed because you're right one day we get a positive report the next they would get a negative report.
-- -- look we have to build housing in this country for years so you're starting to see a pick up in some housing construction jobs or it's just hard to figure you know it's hard I think that's hard to plan to -- -- courier company and -- -- the questions -- your book.
Asking is about that this.
Question becomes relevant in the election as well because it's about fairness we've heard about the present that's a -- FEMA that wasn't really much care for taxes -- what's fair for nobody else -- -- -- -- -- it.
-- -- Think that in in the you know thirty seconds the theme of the book is the fairest system on the mall.
Is the free enterprise system that's what creates the most jobs that's what -- have lost opportunity in the -- while for the most.
Americans and and the truth is the reason the United States of America has become the richest country in the world is we have this.
Free enterprise system it doesn't guarantee their -- gonna get rich it does guarantee that everyone has that opportunity and and I think my motivation for write in the book is I'm really worried.
But what we're doing the free enterprise system that we've we've kind of abandon it more for a kind of socialist.
Model with big welfare state high tax rates in and Gemma that's the Europe model that's good that's collapsing over there.
But we -- what happened to the queen in Snow White when she picked -- a question right rear view.
Maybe there's a lesson in there somewhere Steve congratulations -- -- you Jenna and think nutrients as is always good to have parents that you.