Why the drop in Stock Prices?

From Time Magazine - click on the link to read more.

Some have said the fact that the debt deal was struck has allowed investors to focus more clearly on the economy, and what they see, now that they're looking again, is bad news. But it's more than just that. In the Aug. 15 issue of TIME, columnist Rana Foroohar argues that the debt deal will increase the level of inequality in the U.S. You can read her very good article here. I agree with Foroohar that it is bad news — and perhaps even worse than she makes it out. Inequality not only caused the financial crisis; it could make the recovery much slower. Here's why:I have written a few pieces about how the debt deal could slow the economy. A cut in spending, be it from consumers or the government, during a recession is sure to cost the economy jobs.