Following the economy, especially lately, can be confusing. Reporters are not helping matters.

A CNN.com article, for example, blames yesterday’s stock market plunge on a selloff.

But there was no selloff; every seller requires a buyer.

Just as more people were selling, so were more people buying. Describing yesterday’s market as a selloff only tells half the story.

The same article says that today’s 600-point gain happened when “investors scooped up a variety of shares.” But those buyers cannot buy unless somebody sells…

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My Calculations:

The 2007 federal outlays from fiscal year 2007 were 2.73 trillion.

The 700 billion is to be allocated before Dec 31, 2009 (or Oct 3, 2010 with the extension).

Taking the 15 months until Dec 2009, and multiplying 15 divided by 12 by 2.73 trillion (because of the Continuing Resolution) would be 3.4125 trillion. Then taking 700 billion divided by 3.4125 trillion is 20 percent.

Why is the market tanking?  Wall Street knows what this will do to our economy.

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