May's Big Selloff Could Be Just the Beginning - WSJ.com

PAYING FOR LUNCH: May's Big Selloff Could Be Just the Beginning - WSJ.com

This article also fails to address the big shifts in the reward for labor from the laborer to government. And, government then deciding how to redistribute these rewards.

As such, the laborer complains that they aren't seeing any additional income, whereas, in fact, the income is being taxed and charged away to feed government social programs.

This overtaxing was somewhat obscured under Bush with tax cuts and then the housing bubble. However, now, the government under Obama and Pelosi is trying to further blow out the bubble of government entitlements and government benefits.

As a result, not only is the allocation of the income from production going further down against the worker, the government's borrowing is taking capital out of the private economy.

Thus, corporations have cut back staff to maintain profits in 2009. But, looking ahead, all they see is more taxes and additional costs on investment.

This is not the picture that produces jobs or a revived economy.

Clearly the Democrats feel they can tax and tax and tax without any impact on the behavior of business or consumers.

But, this is clearly not turning out to be the case. And, as the government builds up a bigger and bigger debt, there is clearly a time when the lenders will "pull-a-Greek" and demand higher interest.

It's hard not to see the administration's policies as other than the band playing on the Titanic. Sadly, the administration can't imagine there is anything wrong with socialism; and, they can't see the evidence surrounding them.

Hard to believe the stock market won't wake up and reflect this - at some point!