Folks, it appears like we’re on the verge, once again, of a Greek bankruptcy or default. I still maintain that this does not portend a breakup of the European Union. A default in Greece would be roughly the equivalent of, say, California or New York City going bankrupt—we’ve seen municipalities and states default before. Dysfunction is part of the evolutionary process in the ongoing EU experiment, and it’s something we’re going to have to live with for quite some time.
Last Friday, the day after my fellow Chicagoan told us how important jobs are to repairing the economy and the country, we learned that the Labor Department is investigating large U.S. homebuilders to make sure workers were paid minimum wage and overtime. This investigation will almost certainly lead to a significant increase the homebuilding industry’s labor costs, and this is an industry that’s already hanging on by a thread. I’m sure you all know an electrician or a drywaller who’s dying for work. Do you think this will help him find it?
Once again, this administration’s constituency, organized labor, is dictating policy at the highest level—and his henchmen are out doing his dirty work. It’s the NLRB in South Carolina all over again. Are you kidding me? Is this really the way to create jobs?
Folks, I’ve had enough. I know I’m preaching to the choir here, but this convoluted logic cannot continue. Attacking business on one hand and spending—no, wasting—another $450 billion on the other is not the way to solve this problem. I’m 50 years old. I’ve still got some energy left. And I’m going to spend the next year doing whatever I can to make sure that the people who got us into this mess are not going to be in a position to continue after next year’s election.
Adding to the volatility in the markets is the fact that we’ve got a big quarterly expiration, aka quadruple witching, this week. As I mentioned on the show today, way back when expiration got that scary sounding name, it was because it led to so much volatility—often, the Dow would move 20 or 30 points. Of course, the Dow was much lower then, but still, it seems almost quaint now that we get 200 point swings like they’re nothing!