Our old friend Muckdog used to be fond of saying that the Holy Stock Market reflected where the economy "was going to be a six months or a year from now", or some such bromide.
In the past 6 months, the Dow has advanced 900 points and now retreated 850. How that tells us anything about where the economy is going to be in a year is a mystery to me---is there going to be an expansion followed by a recession? Just looks like volatile, inscrutable "capitalism" as always.
I guess there was some money to be made in the last 6 months by lucky day traders and professionals; for the average schmoe with his little 401k, not so much.
How long can consumers with a collective negative savings rate keep taking out (now sputtering) home equity lines and keep up spending? That's around 70 some percent of the economy.
How long can Bushco's deficit "war" spending/stimulation keep lining the pockets of the military industrial complex and fuel whatever is going on now? When will Bernanke order the Republican Congress to get the fiscal house in order, like Greenspan did to Clinton in 1993, and raise taxes?
What the stock market thinks/does----irrelevant.
Posted by euzoius at June 12, 2006 02:38 PM