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Wall Street Up For Fourth Day In Row. Are The Obama & Democratic Economic Policies Starting To Work?

For the fourth day in a row, the stock market was up. The Dow closed up 53.92 points today. Usually, the stock market runs as much as six months ahead of the actual economy. Further good news came from a number of businesses with more positive news. However, perhaps the biggest news was from GM which might be turning the corner financially and may not even need the immediate $2 billion in proposed bailout help to continue in business. Only last week GM's future was in serious doubt. Now , today that future looks much better.

All of this good news is beginning to beg the question of whether the hands on approach by President Obama with the economy and so much immediate action isn't beginning to turn the corner or other factors are at work? But historically most Democratic administrations have brought prosperity to the nation, and these early positive economic signs might just indicate that the serious global recession may be easing and once again the policies of Democrats are turning the corner with the economy.

Certainly it is very early yet. Still these positive signs from the last four days are beginning to set a upward trend that perhaps once again the voters trust in the Democrats is being rewarded by bringing the economy back to life, while congressional Republican attempted to block the Democratic economic recovery plans.

President Obama also made an annoucement that he's working to get credit flowing again to consumers to help to spur retail, auto sales and home sales. It's more active hands on leadership from the Democratic White House compared to many Republicans leaders who oppose government action to improve the economy.


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Comments (8)

Allen:

The large movement of several indexes, e.g. Dow, S&P, NASDAQ, in almost exact likenesses (compare the charts) and by nearly exact percentages, always, is indicative of wholesale buying and selling by large "institutional", not "a HUGE group of average investors". The large "institutional" are all Republican powerhouses that would tend to make money no matter whether they sold en masse or bought en masse, especially because they can pad their moves through derivatives and accounting finesse, and if they lost some money, it would be in small percentages of their total wealth anyway--and certainly they would be in a position to take tax advantages on their "losses". And to say they would never dump a few dollars just to slam a Democratic President is heinous naiveté at best, and intention propaganda at worst..

The middle class has been gutted in their earning power over the past thirty years. You can scream they "spent beyond their means" all you want. The fact is, they bought into the Republican propaganda about the economy being "sound" like fools--even KNOWING that the Republicans were gutting their wages--but where the rubber hits the road there is not going to be any large buying of houses, cars, appliances, jewelry, or any of the "niceties" of life for the middle class for several years. Those who have survived the onslaught of the "class war" on the middle class by Republicans, particularly during the last eight years ("there is no inflation, not counting the stuff that costs two to three times as much as it did in 2000, like food, gasoline, and war, of course), are not in a position of splurge.

Reagan:

Yeah, Allen, life sucks. The fundamentals of the American economy are not "sound". Capitalism = greed. Blah blah blah...

Pretty cool how you can splatter that opinion to an audience of how many people? No one asks why you don't pinch pennies and ditch your connection to the internet in this horrible time of economic crisis. By the way, caring lover of humanity, what could you do with 20-60 bucks a month? No capitalism, no first world lifestyle, buddy. No America, no capitalism. No American capitalism, no dragging (slowly, but surely) third world countries up and out of squalor. By squalor, I mean slitting cows' or goats' throats for meager meals. Too bad they don't have cell phones to take pictures of the conditions they live in and the meals that they eat while complaining about how "poor" they are. If you even think about telling me that that life is something to compare to yours, go trade one of them. Is it unfair to expect them to deal with modern civilization?

You really should simmer down and be grateful for America just once in a while. While you're at it, be grateful to be an American. That is, if you are one. 'Cuz as negative and miserable as you come across, I wonder if you are an American. You seem to hate us so much.

Allen:

Reagan, typical GOP response. To bad that smearing of people is no longer working. But with your posted name, I can understand it. What division of the "yellow elephants" did you say you're in?

See, smears can work both ways.

I would say that the upward movement in the markets is a response by traders who are desperate for any kind of good news. A friend of mine who works as an investment advisor told me two weeks ago that the markets were desperate for good news, or any outward sign that we have "bottomed out" and it will be safe to buy stocks again. Many investors thought that the January mini-rally was the bottom, and were spooked by the additional 30% decline throughout February and the first week of March. Uncertainty among investors has led to massive selling, which of course drives the value of stocks down further.

But there has been some good news during the last few weeks. Consumer spending was down, but not as much as people had thought. Unemployment increased, but again, not as much as was expected. WalMart's profits beat Wall Street forecasts. And probably the best news was about Bank of America, J. P. Morgan, and Citibank -- all three institutions have reported profits. BOA and CitiBank also stated that they do not need anymore TARP funds.

It would be difficult to point to any Obama policy and conclude that it has had any affect on the market. His proposed tax increases haven't kicked in yet, the "stimulus" spending won't be fully implemented until next year, and the Obama Treasury Department still hasn't put together a single coherent plan. However, President Obama's decision to stop talking down the markets and stoking fear probably has contributed to the markets' recent upswing.

Bottom line is, I'd wait until the bear market was over for certain before giving Obama all the credit. :-)

DaveD:

As long as Obama or any of his economic advisors refrains from giving a major policy speech then the market has a chance of doing something. The Obama administration could take credit for an economic upturn if it would just stop talking about it. When he gives a speech on the economy he is such a drag to listen to over and above his conflicting messages he espouses on a day to day basis.

Reagan:

The Democrat platform of CHANGE simply means that they think America sucks so bad that they have to change everything about it in the first place! So, you're saying the whole liberal platform is a smear, got it.

Don't get me started on HOPE, 'cuz I spelled it out pretty well up above. Many American "poor" people have cell phones. The rest of the world's poor people are STARVING TO DEATH.

Is that all you've got?

GarandFan:

The large "institutional" are all Republican powerhouses ....

Yeah, like all those retirement funds.........real REPUBLICAN powerhouses.

Nice try, comrade.

fustian:

What in the world makes anyone think that the big time owners of all those hedge funds and brokerage houses are Republicans?

They're rich New Yorkers!

That group is lousy with lefties and democrats. Clinton's buddy Rubin, for example, is big Wall Streeter.

Cramer, while slightly off the reservation lately, is a big democrat.

The people that ran Fannie and Freddie were all big time dems.

You people shouldn't engage in such stereotypes.


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Publisher: Kevin Aylward

Editors: Lee Ward, Larkin, Paul S Hooson, and Steve Crickmore

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