The continued high unemployment rate, the weakness in manufacturing, and the tightening-up of Chinese monetary policy have all contributed to a feeling among investors that stock values may be too high.

There is little doubt that continued high unemployment rates will have a major impact on the 2010 mid-term elections, and may hamper Obama’s ability to accomplish other major campaign initiatives. The truth of the matter is that there is very little the Obama Administration (or any administration) can do to effect the economy in any significant way without changing the American capitalistic system.

One of the few things that both Democrats and Republicans can agree upon is that the current number of unemployed workers in this country is painfully high.  Although the official “unemployment rate” is hovering around 10%, the actual unemployment rate is probably closer to 20%.  The reason for this wide disparity is that the official rate only takes into consideration those individuals who are actively seeking employment.  Those unemployed who have simply given up trying to find a job; who are perhaps waiting to be recalled or who have come to …