Is the gig up?

 

Tuesday, August 2, 2011 – 01:20 p.m.

What’s wrong with this picture?

The U.S. achieved a debt deal, while new economic data tanked the markets Tuesday.

The S&P 500 broke below its 200-day moving average and gold hits another new all-time high.

Economic reports today show consumer spending actually fell last month, real wages barely budged upward and consumers appear worried about the future.

And honestly, they should be.

It looks as if people may be figuring out that America is financially unstable and no one really knows what to do.

Congress cutting a deal to increase the national debt by $7 trillion over ten years was a mistake that makes a downgrade of the U.S. credit rating almost certain to occur over the next few months.

Today’s losses wiped out all the market gains for 2011.