Yes Jones, the market has dropped from its recent record high near
14000, but presently it has gone up from slightly below 12000 to now
near 12800 while all kinds of bad things are becoming perfectly obvious.
Someone must be buying stocks without any concern about the real world
conditions. I know that the market can be random and differences in
opinion can caused reasonable variations, but the rise over the last 6
weeks makes no sense. All Hell is breaking loose that only the insane
would ignore. Is this the weeding out effect just before the crash?
Ed
Jones Beene wrote:
Short answer: Because the stock market is not really going up ;-)
Yes, it may look at first glance like there have been some small increases in
the market, in terms of its listed valuation in $US ...
...but thanks to the continuation of the Bush record budget deficits, in terms of
"real worth" on an international standard, such as gold for instance, the stock
market has lost over half its value since Bush took office.
cough, cough ... actually the market has lost most of that real value since he
started his second term...
Jones
---- Original Message ----
From: Edmund Storms
I'm confused. Perhaps someone on this list has the answer. Everyone who
has discussed the issues here seems to agree to the following:
1. Increase in energy cost will drive up food and other commodity
prices, which will reduce consumer spending.
2. Increased cost of personal transportation will reduce consumer spending.
3. The collapse of the housing market will reduce consumer spending.
4. The fed generated inflation will reduce consumer spending.
5. Loss of jobs will reduce consumer spending.
Consumer spending determines the profit of companies. So, why then is
the stock market going up?
