This story is archived
Bush Economy Pushes Dow, S&P 500 to Record Highs »
Posted by: bobo-in-texas 2 years, 7 months agoWall Street carved out a solid advance Friday after data on job creation, manufacturing and inflation injected the market with renewed confidence about the economy and sent major indexes to record closes.
Read Full Story at biz.yahoo.com »
This Story is Archived and Commenting is Closed
Comments: 156
-
bobo-in-texas
June 2, 2007, 1:03 a.m."If you can get job growth without wage inflation, that's about as positive as you can get," said Randy Frederick, director of derivatives at Charles Schwab & Co.
Tax cuts work.
-
birddog54Comment has been removed: User banned.
-
CatholicRedneck
June 2, 2007, 4:37 a.m.So Wall Street is pleased to see "job" growth without wage growth. First off, they should hang on a few months to see the revised job numbers for this month. More importantly, it irks me that stagnant wages makes 'em happy.
If the government used the same accounting standards that corporations have to, it would be crystal clear that future liabilities, like Medicare in particular, will sink the US. But our government says it shouldn't follow FASB standards because liabilities like Medicare and Social Security can be cut or canceled at anytime. Wonderful.
Bottom line: I am as loyal to the US government as it is to me.
-
mcgrievysr
June 2, 2007, 4:41 a.m.Yep, the rich get richer and the middle class get jobs at Mall Wart.
-
deathray
June 2, 2007, 9:11 a.m.Well, since I play in the international equities markets, I'm happy to see them rise, but because I use some sophisticated hedging strategies, I'd make money if the market went down as well.
The issue in my mind is whether or not the S&P is a good metric for the overall health of the economy, and there are issues that make me say no.
I agree that tax cuts work in some measure for those who receive benefit, but it's not clear that the benefits are distributed to the US population at large, just because the equitities markets are doing well.
-
jzinkjazz
June 2, 2007, 10:52 a.m.That cant be,the LIBS,have told us this is the worst the economy has ever been,and we all know the LIBS never lie.
just think how good it could have been if we hadnt sent all of those jobs OFF SHORE,THANK YOU BILL CLINTON.
-
nikkibabe
June 2, 2007, 11:31 a.m.The economy is dependent upon market forces of supply and demand. No President has any direct involvement in what happens. It is the business and consumers who move it.
PS: Especially a total idiot who is in charge now!!!!!!!!!
-
SlapALib
June 2, 2007, 12:14 p.m.It would be nice if we were borrowing money to invest in our infrastructure, like we did with the intercontinental railroad , instead of using the funds to float our lifestyle.
I'm always reminded of that credit card commercial with "Stanley Johnson", where he has a nice house and is in a country club while being in debt up to his eyeballs.
In the meantime, I'm happy about business growth. How do we maintain it?
-
david_nwpa
June 2, 2007, 12:20 p.m.Absolutely right, SlapALib, how do we sustain growth?
Do we continue to decrease taxes to the point the government is bringing in little revenue? Do we stop funding the war in Iraq to assure that the tax cuts can remain permanent? Do we close down all the public schools to stop supporting these free loading kids?
Kids should be reading the want ads by 7 and working by 8. Return the country to a state of conservatives as it was during the McKinley administration! It was good enough for our great-great grandparents, it is good enough now. I mean come on, all this money we spend on schools could be going to improving the pocketbooks of the rich!
-
david_nwpa
June 2, 2007, 12:23 p.m.How else can we sustain growth? How about we eliminate some departments from the government! Why bother with a State Department when the Dept. of Homeland Security could do the job SOOOO much more efficiently? Let's build even more fencing to keep Mexicans south of the border. Those aliens already here? They have arrived; declare amnesty and keep them in the fields picking tomatoes and strawberries. Yes, I am being more sarcastic than usual, but you decide which is meant to be sarcasm and which isn't.
Anyway, can I call China when the time comes to make my mortgage payment? After all, Uncle Sam borrows from them every day.
-
evelyna
June 2, 2007, 12:27 p.m."If you can get job growth without wage inflation, that's about as positive as you can get."
They are hiring part-time no benefits or from temp agencies. The wage growth they talk about is in the executive level. None on the bottom. Wages would have to go up 100% a year to pay medical and fuel costs.
We have an economic system like China. The chinese workers are not allowed to invest in their own stock market.
In the USA the drive is to force people into credit so they cannot afford to invest. That way more money will be sucked up by the credit card companies so the world can invest.
The economy sucks unless you are a good investor. Everyone I know is living off of borrowed money.
-
spkguy
June 2, 2007, 1:21 p.m.evelyna
"Everyone I know is living off of borrowed money."
And what would happen if there is a dramatic rise in interest
rates?
Is the U.S. Economy Teetering On the Brink of Collapse?
-
Thinkingisgood
June 2, 2007, 1:27 p.m.The article says nothing about the "Bush economy."
The occupant of the White House has nothing to do with the current performance of the economy.
-
ameliog
June 2, 2007, 1:41 p.m.During the economic boom of the Clinton presidency, all I heard was that the president couldn't take credit for the economy because a single person could not influence it.
But that was then and this is now. Double standards.
-
-
Amazing1
June 2, 2007, 2:35 p.m.The higher the stock market rises, the greater the fall when it happens. We are borrowing to pay and soon the interest payments will exceed all other outlays. We have a fiat currency. Never, in the history of the world has a fiat currency failed to collapse.
Lask week CNN was gleefully announcing that there had not been such a winning streak on Wall Street since 1927. Remember what happened in 1929?
These are dangerous times for the economy and it may look brighter at the moment. But be careful. Try to stay out of debt, buy gold and start growing your own food.
-
KenRogers2
June 2, 2007, 4:37 p.m.Oh my Gawd!
Please don't let the Democrats see this news.
They are having such fun attributing global warming to Bush.
Attacks on the U.S. can be attributed to Bush (see Michael Moore for details)
Increased prices in fuel can be attributed to Bush.
Solar flares and their disruption to satellite communication can be attributed to Bush.
Belief me, they are not going to be able to cope with this.
You are going to cause undue stress on their psyche.
-
deathray
June 2, 2007, 7:56 p.m.The best bet on equities in rhe recent past has been Dow Jones, whose stock price has doubled in the last weeks, since the Bancroft family has decided to entertain a buyout offer from News Corp.
Otherwise, overall, the US has stopped being the engine of capital growth for the world, with both Japan and Europe taking up the slack. This is a function of the overall slowing of the US economy, as well as a series of other factors.
As not2needy points out above, many Americans are not feeling the benefits of capital flows to large corporations because the benefits of that capital consolidation is not reaching the average citizen. This may be an intentional move on the part of the Administration, who wanted us to participate in the equities markets through retirement accounts, etc. Of course, they never planned for the day when the market might tank, as it periodically does.
-
deathray
June 2, 2007, 8:01 p.m.Two points:
1. The US is busy building our next great competitor in China as we speak...but there are internal tensions in China that don't make their ascension to superpower status a smooth one, and as they are discovering in Darfutr, the world can punish China for their foreign policy miscalculations.
2. Remember that the Republicans believe that all revenues are THEIR money. When they are not in power, it is THEIR money, so none of it can be spent, and when they ARE in power, it's THEIR money, so they spend it like drunken sailors
-
Leemck02
June 2, 2007, 8:49 p.m.The stock market was booming then came the crash leading to the Great Depression. Stock is about making money from company record keeping. Recall, the New Deal came with the SEC and rules. Newt and his contract, embraced by the rubber stamp congress for the last 13 or so years carved those rules out of the rule set. Remember Enron, Worldcom and the list of rule breakers. Reporting and company income to diverted to stockholders are the things making the market look good. Pull back the curtain and you may see that no R&D investments, offshoring, illegal immigrant worker wages, cut benefits, contract employment, vacation time, labor representation, etc are abused to show profit for a good market showing. If GM slipped in the Market as a junior to Toyota, do you still feel good that the Nation is on the rise? America, you had better place stock in small business, private ownership. Not to be ignorant, I mean vote for people that believe in SMB, the salt of the American Dream.
-
Spawnking
June 2, 2007, 9:45 p.m.The Democrats won't be happy till all of America is on welfare ... Why do you think it is they want to tax only the rich (Yes .. they are the ones that keep the bills paid)... they do not promote individual achievement. They feel everyone gets paid the same .. from the go-getter to the guy next to him who's sits on his fat behind doing nothing but wants the same wage! Let the Rich all move to other countries and take the jobs with them .. then all you lunatics can sit back ... watch your Rosie O'Donnel re-runs and not have to worry that your neihbors welfare check is bigger than yours.
-
Spawnking
June 2, 2007, 9:49 p.m.Oh .. and its Bush's fault everytime it rains and your hair gets wet (Pelosi's new conspiracy theory).
-
canadianrancher57
June 2, 2007, 11:42 p.m.I always enjoy a story that has to do with money and the economy and I also enjoy the posts to these stories. What I notice is that there are many people both conservative and liberal that have a very good understanding of finance the only provblem is I don't think that many of them work for your government, and if they do no one listens to them. As for the stock markets in my opinion the returns from stocks can partly be from a good economy but sometimes it can be just because it is the market that is moving, when a person has some money to invest you want it to return the max so you have to keep looking whether it's stocks, commodities, realestate or whatever. With the slowdown in housing some of this money is headed for stocks and as well the housing problem has kept o cap on interest rates so one has to look elsewhere.
These cycles happen regardless of which political party is in charge.
-
Ratskii
June 2, 2007, 11:44 p.m.There are both pluses and minuses in the economy right now. The increase in housing values was helping keep the middle class afloat so they could continue borrowing and keeping the U.S. economy hot. Now housing values are in decline. A majority of us that own our homes have had to pay increases in property taxes and insurance rates that eat up most of what we got in tax cuts. China, India, the OPEC nations and Europe are buying up substantial amounts of U.S. assets. The Federal debt is on the increase as a percentage of the GDP.
None of this necessarily means that the economy is going to drop like a rock tomorrow, but they are items which should make us think twice about where we are headed.
Also, I'd worry about U.S. foreign policy alienating enough foreign backers so that they stopped buying American debt. Interest rates could go up in a hurry.
The first 150 comments are shown. Show all 156 comments »
Submit a Story
Advertisement
