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Stocks up even though consumer spending is down. Here we go supply-siders. Of course you think it will work. We shall see.
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I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett Kavanaugh -
What's the connection between the Economy and stock prices. -
They've predicted 10 of the last 5 recessions.Originally posted by Azazel
What's the connection between the Economy and stock prices.I make no bones about my moral support for [terrorist] organizations. - chegitz guevara
For those who aspire to live in a high cost, high tax, big government place, our nation and the world offers plenty of options. Vermont, Canada and Venezuela all offer you the opportunity to live in the socialist, big government paradise you long for. –Senator RubioComment
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A bust could cause a recession but so could a boom.Originally posted by Azazel
What's the connection between the Economy and stock prices.I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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Usually the rule is: consumer spending up, corporate sales up, profits up, stock prices up.
The divergence in consumer spending and stock prices doesn't show that supply-side economics is working. Rather, it's a reflection of the reduced taxation on dividends, which makes stock-ownership more attactive. The rich, rather than investing in bonds, real estate, commodities, etc., are now directing their investments to stock ownership, and the resulting increase demand for stocks is driving up their prices.
The fact that consumer spending is reflective of a lessening of the standard of living for average Americans.
Thus, insofar as supply-side economics is designed to increase the wealth of the wealthy, it is succeeding. Insofor as it is designed to increase the wealth of all Americans, it is failing.
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I don't think Dubbya made an even half sincere attempt to suggest his policies were anything but a gift to the rich. Therefore he has succeeded. I suspect his next term will sink the US economy completely, Iraqi oil revenue or not !Originally posted by Zkribbler
Thus, insofar as supply-side economics is designed to increase the wealth of the wealthy, it is succeeding. Insofor as it is designed to increase the wealth of all Americans, it is failing.
There's nothing wrong with the dream, my friend, the problem lies with the dreamer.Comment
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Oh man. Maybe he just wanted to stop talking about the war because of the looting and all, but he wouldn't shut up about how many jobs it was going to create.Originally posted by Uncle Sparky
I don't think Dubbya made an even half sincere attempt to suggest his policies were anything but a gift to the rich. Therefore he has succeeded. I suspect his next term will sink the US economy completely, Iraqi oil revenue or not !
I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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*Adding "Jobs" to the list of US reasons to go to war with Iraq*"I work in IT so I'd be buggered without a computer" - Words of wisdom from Provost Harrison
"You can be wrong AND jewish" - Wiglaf :love:Comment
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Re: Stocks up, consumer spending down; Is Bush plan working?
I like simpler explanations. The speculative bubble in oil and gas futures that was driven by the mess in Venezuela and Iraq has popped, and a lot of the stock selloff from the market peak to the present was a result of overreaction. When you had the oil and gas bubble issues, you also had a crisis of confidence with Enron, Adelphia, Worldcom, GE, etc. playing games, and a CPA industry whore running the SEC. A lack of new scandals breaking has calmed down the institutional types, who can now tell themselves that stuff was all an anomaly, not standard practice in corporate America.Originally posted by Kidicious
Stocks up even though consumer spending is down. Here we go supply-siders. Of course you think it will work. We shall see.
I don't see anything fundamental at all, just a reassessment that things weren't quite as bad as the initial hysteria indicated.When all else fails, blame brown people. | Hire a teen, while they still know it all. | Trump-Palin 2016. "You're fired." "I quit."Comment
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Last I heard consumer confidence was up.. not down.. 91.6 from what I read in the newspaper today. And also industrial production growth has shown surprising increases.For there is [another] kind of violence, slower but just as deadly, destructive as the shot or the bomb in the night. This is the violence of institutions -- indifference, inaction, and decay. This is the violence that afflicts the poor, that poisons relations between men because their skin has different colors. - Bobby Kennedy (Mindless Menance of Violence)Comment
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Consumer spending, not confidence. That is what kidicious pointed out. Look at the April numbers for consumer spending. Factories orders were up form the month before, but IIRC, there was a drop in durable goods orders not to far ago.If you don't like reality, change it! me
"Oh no! I am bested!" Drake
"it is dangerous to be right when the government is wrong" Voltaire
"Patriotism is a pernecious, psychopathic form of idiocy" George Bernard ShawComment
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Industrial growth isn't that surprising - a lot of people made decisions to defer stuff until they saw how the economy and the markets were going to play out, so it isn't like things were cancelled and shutdown, and now there's a new surge of growth - it's catch up from a "wait and see" period.
My consulting clients have a bunch of new energy projects that got delayed, for one example - with the NYMEX prices for natural gas, they would have really gotten skinned, and had a lot of pressure from gutless financial weenies to lock in those atrocious Chicken Little prices on long term contracts, so they just shelved a lot of orders without killing them outright. All in all, my clients alone accounted for six to nine months delay in ordering about $60 million in large ticket durable goods and another $150 million or so in construction contracts and small ticket durable goods. And that's a small drop in the bucket.When all else fails, blame brown people. | Hire a teen, while they still know it all. | Trump-Palin 2016. "You're fired." "I quit."Comment
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So let me guess.. you leftists will blame this on Bush?Originally posted by GePap
Consumer spending, not confidence. That is what kidicious pointed out. Look at the April numbers for consumer spending. Factories orders were up form the month before, but IIRC, there was a drop in durable goods orders not to far ago.
The signs are there, and I believe the recovery will be here in the 4th quarter.For there is [another] kind of violence, slower but just as deadly, destructive as the shot or the bomb in the night. This is the violence of institutions -- indifference, inaction, and decay. This is the violence that afflicts the poor, that poisons relations between men because their skin has different colors. - Bobby Kennedy (Mindless Menance of Violence)Comment
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Stock prices are up, therefore his plan is working. It'd be nice if his plan included ordinary people, but it seems we just can't afford to buy some tax cuts for ourselves."The purpose of studying economics is not to acquire a set of ready-made answers to economic questions, but to learn how to avoid being deceived by economists."
-Joan RobinsonComment
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Most of supply-side economics is an excuse for tax cuts for the rich.
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