Whyy so Gloomy?

[Valin]

IBD:

7/9/10

Economic Policy: The U.S. economy seems to be undergoing a "pause," according to former Fed maestro Alan Greenspan. But is it the pause that refreshes — or one that leads to an inevitable second downturn?
While we can't pretend to know all the answers, we can say this: The mischief, malfeasance and just plain incompetence by our government leaves us with a sick feeling in our stomach when it comes to next year.
Today, there's no shortage of head-scratching over the weak, jobless recovery we're in, and the failure of the economy to catch fire and start growing again. But really, it's no mystery at all.
As poll after poll shows, businesses and individuals are just plain scared. They see massive new government initiatives and taxes either passed or in the pipeline, and wonder what room will be left for the private economy. The answer is: Not much.

According to Wall Street Journal columnist John Fund, Democrats plan to push through still more regulations and expansions of government even if they lose the November elections.
During a lame-duck session between the election and the swearing-in of the new Congress in January, Democrats hope to pass a "card-check" bill for Big Labor, an economy-busting cap-and-trade law and perhaps new tax hikes on all Americans after President Obama's Deficit Commission issues its report in December.
Think about it. Democrats could be massively repudiated at the polls, yet still ram through more of their big government agenda.

If you're still wondering, as many clueless economists are, why businesses in America are sitting on more than $1 trillion in cash but refuse to invest it, please re-read the previous two paragraphs.