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Finding The Real Killer In This Market. Now, Hillary, Now.

Read more articles on Finance and Celebrity News and Politics and Investing.

January 23, 2008

Posted by neillevine

About This Editor: I am a writer. Have been writing for other sites, but expect to do most of my future work HERE! My expertise extends from the esoteric such as burning hydrogen to the unpredictability of the stock market and my writing makes me a jack of all trades and exasperated master of none. I have had some influence over national wildfire and water policy and there are hints of a change in energy policy, BUT as Samuel Goldwyn once said, "A verbal promise is not worth the paper it is written on."

         

Politicians might look down on the stock market for ideological, patronage and other reasons, but it does do good things for the country and certain constituent bases by providing jobs and incomes and, best of all for those dependent on the government, income taxes, capital gains taxes and other revenue based on imposts of various sorts.

So while at the current moment the national economy is performing tepidly, the current slide in the market is attracting political attention because of worries over the possibility of a recession that may or may not come to fruition, but is a very real concern at the moment.

As an indication of how bad things are, it has been reported that thirty-five other stock exchanges all over the world took a dip Monday, including the FTSE (pronounced footsee) in England, the DAX in Germany, the CAC in France, the Nikkei in Japan and so on.  (It should be pointed out that in their respective countries, each is the equivalent of the Dow so they are just as important over there as the Dow is here.)

To clarify what is going on, you merely have to look at the thirty components of the Dow.  Since December 31, 2006, the average is down 9.11%.  Of the thirty components as of last Friday’s close, twenty-nine are down and the one gainer, Wal-Mart, WMT, is up a measly one tenth of a percent, which after deducting brokerage fees means an investor is losing money on even the one tentative winner in the group.  It should be added that the drop in the Dow over the past twelve months flies in the face of increased earnings for twenty-three of the member stocks.

Now we have seen how recent pronouncements from Federal Reserve Chairman Ben Bernanke about rate cuts have cut losses for Tuesday’s trading from an opening dive of four hundred sixty points to a something more than one hundred twenty.  This is why he is euphemistically called a powerful man.

Similarly, tax cuts, rebates or whatever else the Congress eventually negotiates will also provide a stimulus and also show why they, too, are considered powerful.

But a big point I want to make is that if they can provide stimulus they can take responsibility for what has gone wrong.  The root of the problem.  A concept akin to the Real Killer in OJ’s case.

Remember buying a house is usually a good deal from an investment point of view, but not necessarily in this market.  My mantra remains, “Now, Hillary   Thirty five years with eight in the White House and seven in the Senate qualifies for A Right Now   Hillary.”

Perhaps we need fewer cream puff questions for Federal Reserve Chairman Bernanke.

Last 5 Entries by neillevine

• Tax Cuts Follow The Bouncing Interest Rates - November 3rd, 2008
• Fund Raising, Jobs, The Future Of The Economy - October 24th, 2008
• Term Limits, Debates, Speaker Pelosi Investing - October 17th, 2008
• Economics=Dismal Science. Budget Deficits Balance Of Trade - October 14th, 2008
• Cam Getting Osama Bin Laden Boost Confidence - October 8th, 2008

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