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On Monday, the Dow dropped below 7,000 for the first time since 1997 and finished the day down almost 300 points. Here's the one thing no one seems to understand right now: Economists and the government are destroyers of wealth.
How could I say this? Aren't they trying to make things better?
Well, the stock market has already lost about $10.5 trillion since the peak back in 2007 and yet at each 1,000-point Dow drop people have kept listening to so-called "experts" who helped pump up the stock market to 14,000 with their "buy-buy-buy" advice.
Just to give you an idea of just how much that is, you would need to spend a $1 million an hour every hour from back when Jesus was born to hit $10.5 trillion.
What kind of credibility do these economists have left, after they've been wrong at every peak and crash we've seen recently?
Take the housing market.
Back in 2005, Freddie Mac's chief economist said, "I don't foresee any national decline in home price values." And the chief economist at the Society of Industrial & Office Realtors said, "There's no national bubble. You have to have a huge deflationary scenario to make a national bubble make any sense."
But as we know, this optimism did not gel with reality.
Be wary of anyone who says you should just leave your money in the stock market, because they are proving themselves incapable of seeing a real worst-case scenario.
Like the government: Their worst-case scenario is the GDP shrinking 3.3 percent this year and a half a percent gain the next year.
Oh really? That's like saying that the worst-case scenario of me eating five McGriddles a day is that I might gain a pound or two.
No, the worst-case scenario is a fatal heart attack.
Ask your gut: Do you believe this is actually the bottom? My gut tells me we are much closer to the beginning of this cycle and no one truly knows where the bottom is.
Meanwhile, the government is destroying wealth and they'll say it's unintentional. But it's become so dramatic that either it's intentional and criminal or criminal in its negligence.
It's not a problem specifically with President Obama or the Democrats, but also with George Bush and the Republicans. They all fail to realize that each time they step in to try to fix things, the market reacts negatively and lots of money is lost.
Since this new mechanic started tinkering, the stocks have lost almost 20 percent of their value.
Simply put, their solution is the problem.
What do you think? Send your comments to: firstname.lastname@example.org
- Watch Glenn Beck weekdays at 5 p.m. ET on FOX News Channel