Shh! The DOW Will Improve When Underlying Economic Numbers Improve - Pass It On

[Median Democrat]

Here is the great secret that Jim Cramer, Fox News, WSJ and the rest of the mainstream media are hiding as they blame the latest market swings on Obama less than two months into his Presidency. Regardless of his policies pronouncements or speeches, the DOW likely will not rebound until we hit some bottom on the underlying economic indicators like unemployment or retail sales. The numbers continue to be horrible, particulaly the last quater of 2008 (BEFORE OBAMA TOOK OFFICE), and the DOW is plunging.

Yet, the financial media types ignore the underlying econmic data, and suggest that Obama's (yet to be implemented) policies are causing the DOW to drop while arguing in the same breath that government action cannot help the economy.

If there was any doubt that the media has a corporate bias toward the top 1 percent, this is it.

[DJ13]

1. The Dow will improve when

.....the people on Main street have enough money to begin buying the baubles the companies in the Dow make.

And it wont happen until then.

[Median Democrat]

3. Shh!!! You can't say that! The talking point is that the...

decline in the DOW has nothing to do with the fact that people are losing their jobs, losing their homes, and buying less stuff. Rather, the DOW is going down because Obama is proposing to increase taxes on the richest 1 or 2 percent of American households.

Get it straight!

;)

[PassingFair]

5. There's a guy in the Stock Market thread that sez it's because we're pessimists...

"Chicken Littles" who are raining
on his eternal parade.

[Warpy]

2. No shit, Sherlock. I keep trying to point out

that the real crisis is a jobs and wages crisis that has been building for over 30 years and finally trickled up to the wealthy.

All economies function from the bottom up and that applies equally to bad ones and good ones.

Had jobs not been shipped offshore and wages been held down here, people would not have been forced into the type of crushing debt they have no possibility of paying off in a normal working lifetime at those depressed wages. The fact that the smartest guys in the room were using that debt to play numbers games and inflate profit is beside the point. The crash is happening because people have no way to pay their debt.

That's the elephant in the room that the well paid, well padded bobbleheads on the evening news would rather die than acknowledge, that their own financial well being depends on that of the janitors who clean up after them in the wee hours.

[Median Democrat]

4. Damn It! There you go again with facts and logic. Listen to Cramer...

Obama needs to grease the wheels for the richest 1 or 2 percent, deregulate, and then the corporate media will pronounce his Presidency a success. If they get paid, then Obama can keep his job.

Afterall, remember how stocks would often go up after a company announced layoffs? Cramer is right! Obama needs to get his priorities straight, and focus on propping up the DOW.

Oh, and ignore the fact that laid off employees are cashing in their 401(k)'s enmasse, which may also contribute to the decline.

:sarcasm:

[leftstreet]

6. If there's a God, someday that Cramer dude will be selling ShamWow

He's so annoying

[Warpy]

7. Nah, he'll go back to playing three card Monte

to sucker tourists from the heartland on the NY streets.

[Still Sensible]

11. No, he will be Bubba's biotch in a cell somewhere. n/t

[nbsmom]

8. Don't forget the folks who are unnecessarily lighting their hair on fire...

And cashing out with no need (e.g., illness or unemployment.)

A 'continuation' if you will of the "you're on your own" mentality so prevalent under Bush...

How many _employed_ folks have decided that they're going to cash in their positions (in and outside their 401ks) and 'sit this out.'

They'll proudly crow about how they're 'sitting in cash'.

It makes me crazy, because it makes everyone else's situation worse.

And it's not that different from the conspicuous consumption of former years.

[Earth Bound Misfit]

17. Wish I had the writeifyin' skills to type words like yourn'

"That's the elephant in the room that the well paid, well padded bobbleheads on the evening news would rather die than acknowledge, that their own financial well being depends on that of the janitors who clean up after them in the wee hours"

Well said. :thumbsup:


And isn't it ironic... don't you think
A little too ironic... and yeah I really do think...

[RaleighNCDUer]

9. No, no, no...

It's all about CONFIDENCE!

If we just get everybody in the country to say "It's all just fine" then it will BE fine and the DOW will go up!

Faith-based economics!

[Median Democrat]

10. Exactly! In May 2008, The DOW Went Up When Paulson Declared Worst Behind Us!

All we need is some happy talk and a declaration that the recession is over to pump up the market. Helping Wall Street, helps Main Street.

;)

/snip

WASHINGTON (Thomson Financial) - The credit crisis that has scorched international financial markets is on the wane but more shocks are ahead, U.S. Secretary Treasury Henry Paulson told the Wall Street Journal in an interview published on Wednesday.

'The worst is likely to be behind us,' Paulson told the paper, in one of the most optimistic comments by a top U.S. finance official since sub-prime mortgage losses set a domino effect in motion in mid 2007.

Paulson said it would take 'some months longer' for the situation to stabilize and cautioned there would likely be further 'bumps along the road'.

But, he said, 'there's no doubt that things feel better today, by a lot, than they did in March.'

/snip

Perhaps we need more immediate happy talk from Tim Geithner and for him to announce a solution, any solution, as the a fix for the crisis. Look it worked for Paulson in delaying an immediate implosion in the DOW.

[Ikonoklast]

18. "Remain calm!! All is well!!!"

[RaleighNCDUer]

19. LOL

[MajorChode]

12. Straight from the GOP playbook:

Blame all Republican screw ups on Democrats.

The DJIA LOST 25% of it's value while Bush was in office. If the Repug's economic policies were good for the stock market, then why did the Dow loose so much value? The Repugs literally got everything they ever wanted. Capital gains and dividend income taxes were slashed to less than half and other taxes on the rich were greatly reduced. If the Repug's formula for the stock market truly worked, we would be in the greatest period of economic prosperity in history. Instead we are in one of the worst.

[The Hope Mobile]

13. HOLY COW!!!!! How did you figure that out?????

That is amazing!! Are you magic??:evilgrin:

[Median Democrat]

15. I Stop Watching CNBC and Fox For A Moment, Then The Logic Just Flooded In

It was an amazing rush, but now I feel like I am doing something illicit by not staying plugged into the GOP Media Matrix.

[The Hope Mobile]

16. Its uncanny how that works! nt

[Still Sensible]

14. The DOW will improve when the talking heads allow

a glimmer of hope to shine through. And I am afraid they will only do so under duress because they really don't want this president to get any credit for successfully turning the economy around. Their long term financial welfare, they believe, is best served by the failed supply side, deregulation, laissez faire free-market-above-all principles that got us in this mess.

They know that the economy will turn around as it has in the past. They know that much of what is being done by the administration will help stop the slide. But they also know that panic is what is driving the bus right now, so they'll exploit that to slow down recovery. They want to make sure they'll be able to, at the very least, claim that the Obama plan slowed down recovery!

Remember, that's what they did in the 90s to Clinton, along with the obligatory "oh the recovery would have happened anyway and Clinton didn't have anything positive to do with it." Holy Shit! There are still some of those worthless luddites claiming that FDR slowed down recovery after the depression--there still fighting that fucking battle 70 years after the fact. What do you think there going to do now?