"Sweetlyfe, I’m not sure what you mean by “It’s too easy to blame the debt deal if there is one . . .” so I can really comment on that."It's something that is being speculated by leftist pundits. It's a way to blame Republicans for the economy. However, this deal isn't the impetus for a 2nd or double dip recession. That has been a possibility for a while now. "When I was talking about investors being afraid that the government is cutting spending too much I was referring to the possible negative effect on the private economy of too little demand. If investors were really concerned about the government spending too much then I would expect them to be more optimistic about the debt deal, but today’s plummet in the stock market suggests otherwise (see here)." Is it possible that for some industries the cuts are an issue. Absolutely, consider the medicare cuts- they are cuts to providers, there for I am sure that there are physicians and institutions concerned about that. We must remember also, these "cuts" aren't cuts at all. They are a slowing of growth. The US budget is not a zero based budget. It starts with the previous numbers and adds a % increase. What the "cuts" in the debt bill do is decrease that % increase. Economics is a difficult concept that I struggle to grasp. Rarely are results we see hinge on one event, or at least it's difficult to determine that results are related to only one event simply because there are so many other variables occurring at the same time. Consider other events going on in the world and the US yesterday. Consider this http://www.marketwatch.com/story/anxiety-grows-ahead-of-july-jobs-report-2011-08-04. What they were fearing in this article is what is expected to happen. The leaked job numbers are bad. But we can't ignore that along with the poor job data in the US there is the European market. More problems with Italy and Greece (?, can't remember the second country). They are talking more bail out. I heard yesterday the US loaned more money to Japan. How the heck do we, a country who's debt is now 100% of GDP as of yesterday loan money to another country?
Tom here's some articles I found on opinions regarding the economy right now. I need to make a correction, 2 of these articles note that the debt deal did not do anything about medicare, medicaid, and social security. I used an example of medicare cuts in the debt deal affecting providers not recipients. I need to look into this further, either that is exactly what they are talking about, or possibly the cuts to medicare only happen if the trigger is touched off. http://www.msnbc.msn.com/id/44006076/ns/business-eye_on_the_economy/#.Tjq-y79fSSohttp://www.nationalpost.com/more+growth+kill+growth+killers/5202322/story.htmlhttp://www.economist.com/node/21525405