And liberals think the sky is falling lol, i remember several months ago the dow went down like 400-500 points in a week or something like that, and set like 30 new records after that. Point is the econony is still strong, even if it loses 1000 points today.
2007-07-26 08:25:47 · 17 answers · asked by Anonymous in Politics & Government ➔ Politics
Bush will have it sky rocketing again in no time!
2007-07-28 04:03:48 · answer #1 · answered by BAARAAACK 5 · 1⤊ 0⤋
Forgive me if I don't get to excited over the Dow these days. If the companies can show solid growth, not just money being thrown around, and if the transports back up them fine. But you also have to take inflation in to account. Stop by www.shadowstats.com they calculate the inflation rate with the same formula use back in the early 90s and you'll find that current inflation is understated by about 3%. A low inflation rate make the growth numbers look better and reduces any cost of living adjustments the goverment would pay. The fed money accounts shows that they have been cranking out money for 15 years. They even stop reporting the M3 account because it was an embarassment. I think most of the gains are inflationary.
A great book on the subject, if you can find it, is "Dying of Money" by Jens O. Parssons. He analyzes the collapse of Germany in the 20s and then the inflation here in the U.S. during the 60s.
2007-07-26 15:59:05 · answer #2 · answered by Ken B 1 · 1⤊ 0⤋
So how does the profit going up of companies that do much of their business overseas, translate to a strong American economy to you?
Considering how well Exxon is doing, there should be no doubt that records are set on the dow, no matter what the rest of the economy is doing.
Since when has the Dow reflected the condition of small businesses, where 70% of America's employed is.
and how high or low the dow goes isn't really anything to brag or complain about, rather how high or low and how fast. and 300 point drop as fast at it did, isn't something to ignore.
2007-07-26 15:30:53 · answer #3 · answered by Boss H 7 · 1⤊ 2⤋
from 1921 to 1929 the DOW rose from 60 to 400. The crash took it back to 145...that's a 66% drop. If the DOW dropped 66% today it would be a drop of 9300. It's a matter of scale.
2007-07-26 15:36:50 · answer #4 · answered by amazed we've survived this l 4 · 2⤊ 0⤋
You seem to have things a bit backwards. When the Dow goes up 100 or so points, Conservatives start dancing and saying how great the economy is. Liberals point out that the Dow is not a good barometer of the economy as a whole, and that you shouldn't look at stocks day-by-day. When the Dow has a big drop, Conservatives somehow don't use their own logic to declare that the economy is doing poorly.
2007-07-26 15:30:45 · answer #5 · answered by Anonymous · 4⤊ 3⤋
The Stock Market is not for people with weak stomachs. It has it's good days & bad, and today it's obviously not feeling too hot. The latest trends aside, the next few quarters don't look too good, thanks to a weaking housing market, rising energy prices, and the natural decline that usually sets in just before the General Election & the change of Partys in the White House.
2007-07-26 15:35:51 · answer #6 · answered by Joseph, II 7 · 2⤊ 0⤋
It isn't over yet. The economy isn't strong at all.
Unemployment figures are skewed by those jobless for more than six months.
Inflation is based on the cost of durable goods. (it is always quoted as ""less energy" because we all know those prices are higher". Figure this..In the last five years home prices have soared 23%, energy 160%, food 18% and yet we state inflation low because a dishwasher has only risen 4%?????
Jow can ANYONE believe that the economy is stronge when 12% of Americans are in danager of foreclosure?
2007-07-26 15:33:47 · answer #7 · answered by mymadsky 6 · 2⤊ 2⤋
I've been hearing that Christine Gregoire (governor of Washington State) has been taking credit for the booming economy there. So if our "booming economy" can be accredited to the Democratic Congress that has only been in office for six months, then is it ALSO their fault that the Dow plunged 300 points?
2007-07-26 15:32:56 · answer #8 · answered by The_Cricket: Thinking Pink! 7 · 2⤊ 1⤋
The economy is not as strong as you might think. The subprime problem is deeper than expected. That realization by most investors was the reason for today's sell off.
But, you are right. The sell off does create some bargain buying on the market. It's a good opportunity to buy.
2007-07-26 15:32:47 · answer #9 · answered by Overt Operative 6 · 1⤊ 2⤋
Listen up...
The stock market is not an indication of the success of ANY president or any administration.
And as far as the economy being "strong," the majority of all the new jobs created are "McJobs" and you KNOW it.
2007-07-26 17:53:13 · answer #10 · answered by Anonymous · 0⤊ 1⤋
I wouldn't worry about any stock market average; it's just profit-taking. The average is not an indicator of the health of an economy, anyway.
2007-07-26 15:44:57 · answer #11 · answered by Mathsorcerer 7 · 0⤊ 1⤋