Mar-8th-2010
The stock market has been skyrocketing since Obama announced his economic plans. Are these gains for real?
Is the stock market really turning around? Are these gains fundamentally sound? At this pace the Dow will hit 10,000 in a couple of months. Do you think that will happen? Will this uptick lead to more jobs? Note: I do realize that although the markets are recovering nicely, the overall economy is in bad bad shape. Especially the job market.
stock market movements only relate to what is good for wall street…and what is good for wall street is not necessarily what is good for the USA.
for example….lets say that tomorrow it is announced that capital gains tax rate will immediately go to 7% down from the current rate. wall street would be jubilant and stock prices would jump greatly for that day..maybe for a few more days. But is that policy of lowering the capital gains rate that low really good for the country?
Another example, lets say that it is announced that the govt will buy all the bad loans and take them off the books of all banks …wall street would be jubilant…as many banks would benefit and many profiteers’ investment will be protected, but with the US govt borrowing so much money from china to do so, is that really good for the long term health of the USA?
Last example, lets say tomorrow it is announced that the tax tables will go back to what they were under Eisenhower, wall street would be very unhappy…since back then the rich income earners paid reallly really high top income tax marginal rates in excess of 70%..I belive they were like 88% back then. Wall street would be unhappy, but isn’t raising more tax revenue to reduce the 14 trillion dollar national debt something that makes sense for the long term economic health of the USA and good for the country as a whole?
any gains will be spent by the democrats.
The market is going to go through great ups and downs random, as it was during the great depression. There won’t be any stable gains or losses. It will be like its jumping on a trampoline.
durable goods purchases went up, housing prices went up, housing sales went up, mortgage rates dropped…
Has nothing to do w/ Obama’s economic plans…they don’t take effect until 2010 anyhow.
Time waits for no man and it is not going to wait for profits so if you are there for the big run you profit and it goes down so much right now because so many people need to take some profit when it comes up. The real truth is that the bill keep coming even when the market is down so even the prepared people are running short now.