Okay, So I got this very intriguing tweet asking what I thought about the stock market’s third straight loss, and also its worst single-session percentage drop in more than two months? http://bit.ly/4puRdt
Here is what I think…
It is murphys law, revisited. Most economists predicted a slower second half of 2K10 anyway, but not from Q1! Apart from the dogging domestic healthcare reforms, foreclosures, unemployment, foreign policy issues like Iran, Yemen, Afghanistan/Pakistan, China is not making things any easier. Couple that with Haiti, you may think even fate is conspiring against Obama. We cannot even turn to TW for some catharsis in this complicated world (hope Ricky and/or Rory Mc light it up right away!!).
In short, people are spooked at the prospect of another March 2009. Is it conceivable? Think about this- while none of the indicators of economic recovery are positive, the stock market rebounded quite remarkably well in the last 9-10 months. Did the infusion/printing of a trillion dollars help. Of course, it did. But that lift may be wearing out its welcome. I am no economist, but I wouldn’t be surprised if there was another government intervention. At that point, I would be rendered clueless, and scrambling to take every penny out of the stock market!!
This is where the true innovative spirit, technology, and the unbelievable cauldron of social media, may all come together, to Obama’s rescue. Based on never seen before levels of collaboration, individuals, and small-medium businesses will come alive, create jobs, one at a time. Once the security, privacy, and legalese is out of the way, cloud computing, advances in mobile technology, and others, that I am not smart enough to comprehend, will enable people to be more connected, and more empowered. There will be safety in numbers for the little guys, as folks from almost every walk of life, will be on their team.
Obama’s appeal as a people person that inspired millions, may be his best hope. But, if the recent trends in the VC industry indicate, it may be an even more uphill climb. http://bit.ly/6Cm0zd
What do you think?