Bears Take Over - Full Routing In the Economy

Can you see the United States economy? It's the salmon on the right -

Stocks fell to their lowest level in seven months Monday after traders couldn't shake fears that Europe's economic problems will derail a global recovery.
The Dow Jones industrial average fell 115 points, or 1.2 percent, to its lowest close since November. The Dow lost 323 Friday after the government's May jobs report fell short of expectations.
Broader indexes logged steeper percentage drops Monday. The technology-focused Nasdaq composite index fell 2 percent.
Monday's drop was a smaller-scale repeat of Friday as traders again dumped stocks in the final hour. That signals traders would rather sell than be hit by surprises, especially because Europe's business day begins before trading opens in the U.S. Some traders say the slide has been overdone but that the market isn't likely to find much stability until there is a better sense about how Europe's economies will hold up under heavy cost-cutting.

The Real Effect
Here's a hint, it's not going to hold up under heavy cost-cutting seeing as how you are slitting the neck of the goose! It amazes me that they are unable either to see or acknowledge that it's primarily government spending that is killing the patient. Let us return to our sugar analogy of 2008.

Imagine for a moment that your patient is alive, but only because of the sugar doses which are at near fatal levels. Continually introducing more sugar keeps the patient alive, sort of. While stopping the symptoms of death, it is actually the causation of the destruction in the body. The correct response is NOT to remove the sugar at this moment as it will flatline the patient, but to stabilize the patients own nutrients. Give the man a tax-cut sandwich for heaven's sake!

This will not remove the immediate problems but will set the stage for removal of stimulus later. In plain English, if you remove the government stimulus now, the results will be immediate and painful death. If you remove barriers to production, the positive results will be fast and furious. Cut taxes on capitol gains, gasoline, eliminate income and property taxes and above all repudiate all interest on the national debt as fraudulent and odious.

Of course this will bankrupt some banks, but they are walking dead anyhow only propped up by the corpses of the American taxpayer.