“With Hurricane Irene threatening a full-force hit,” The New York Times reported today, “New York City on Thursday ordered the evacuation of nursing homes and senior centers in low-lying areas and made plans for the possible shutdown of the entire transit system.”
Prudent. Very prudent. Get the old and the infirm to high ground and limit the exposure that a flooded subway system could bring.
It is what markets and banks are doing vis-à-vis the national economy, scuttling to high ground, protecting what they have and watching for signs that the storm has passed or won’t hit them.
When markets conclude that either Mitt Romney or Rick Perry will bring the economic circus to an end and restore the private sector to the preferred position it has enjoyed since the founding of the Republic, then markets will begin to unlock and businesses to expand.
When the seemingly endless series of self-promoting and self-pitying (“a run of bad luck”) presidential speeches in fact comes to an end in January, 2013, then capital and capitalists will return in full force and employment will rise.
But until this storm of economic ignorance and Alinskyite fury passes, expect nothing because the smart money knows there’s still a big chance of a big blow again.