Tuesday, July 17, 2007

DOW Jones Avg... 7,000 to 14,000

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Back in 2002 the Dow Jones Average was at 7,ooo and this was just after the confirmed Clinton recession and the effects of the attacks on 9/11. Today it broke into new territory at 14,000 but yet coverage on the great economy has been lacking. Our local paper here the Staunton NewsLeader has always gone to great lengths to avoid giving President Bush any "Positive" acknowledgement or credit when they can but its getting harder and harder to avoid the great economy we now have...

The NewsLeader has instead focus on more pressing issues and always looking to take a swipe at the President and they managed to do it again today in their editorial page. Their editorial was talking about the waste of money spent to maintain ICE in a ready status to respond to disaster events such as hurricanes. Now last year it was predicted that we would have more MAJOR hurricanes then the year of Katrina but little evolved. Thats another story, but the NewsLeader was able to end their editorial with a cheap swipe at the President with the following: "Unless — unless we could be missing something here ... could this have been the Bush administration's secret plan to combat global warming? It's a chilling thought" ...
http://www.newsleader.com/apps/pbcs.dll/article?AID=/20070717/OPINION01/707170307/1014/OPINION

But lets take a look at this economy that the NewsLeader seems to be avoiding. Donald Lambro of the Washington Times had a good article about this and the shrinking defecit that we have but gets little attention from the media.


"The Office of Management and Budget announced last week that the annual deficit, estimated at $400 billion just a few years ago, will be $205 billion by the end of this fiscal year (which ends in September). "

But remember back before the Bush taxcuts went into effect all of those who claimed reducing taxes would only result in a shortfall for government revenues?


"These are the same people who said President Kennedy's tax-rate cuts would lead to years of red ink and all sorts of economic dislocations when, in fact, they led to a budget surplus by 1969 and a much stronger economy. "

Wait. I thoughe JKF was a Democrat? Did he understand the value of lowering taxes to improve the economies growth?


"The same people said President Reagan's tax cuts would wreak havoc with the government's fiscal solvency, weaken the economy and worsen inflation. But the economy came roaring back after the worst recession since the Great Depression, inflation abated, the deficit eventually began to come down and we ended up with budget surpluses in the 1990s."

And they came out of the woodwork once again when President Bush proposed his tax-cut package, back when the Dow was at 7,000...


"And the same people said President Bush's tax cuts would produce a long-term fiscal disaster and deficits as far as the eye could see. In fact, the well-timed tax cuts pulled the U.S. economy out of its sharp decline in the aftermath of the September 11, 2001, terrorist attacks, and the resulting economic growth they triggered has produced steadily rising tax revenues that have steadily eaten into the deficit year after year."

Now some have claimed this is just a "Bump" and there is no real growth...


"A resurgent economy has been expanding for 22 consecutive quarters with a growth rate (GDP) that has averaged 2.9 percent a year since Mr. Bush came into office. "On an inflation-adjusted basis, the economy is now more than 16 percent larger than in 2001," OMB reported."

And don't forget the un-employment rate...


"Since the Bush tax cuts fully took effect in 2003, the American economy has created more than 8.2 million new jobs, cutting the unemployment rate to 4½ percent. That rate, by the way, is on average lower than the rates for the 1960s, 1970s, 1980s and 1990s, OMB says."

The good news is that it appears the growth will continue but unfortunately this also puts more of our tax money into the hands of the politicans to spend. Not a total bad thing if they spend it wisely like taking care of the Social Security problems but let's wait and see on that one...


"Here's a startling fact that puts these numbers into sharper perspective: The economy has had the longest stretch of nonstop job-creation growth since June 1990. That's why federal tax receipts have risen by more than 37 percent over the last three years and will grow by another 7 percent this year."
http://www.newsleader.com/apps/pbcs.dll/article?AID=/20070717/OPINION01/707170307/1014/OPINION

Now chances are you still will not see anything about the positive economy in the editorial pages of the NewsLeader but be sure to look for the positive comments on the "John Edwards (D) Poverty Tour" and how it's all the Presidents fault...

6 comments:

Steve Harkonnen said...

Well, I can certainly attest to the strong economy...my 401K is riding at a 14% profit margin for this quarter alone!

No complaints from me at all, however, we all know how our dot.com economy can take a dip at any time...just have to be careful in moving money around the market these days, and so far, I guess I am doing just fine.

in contrast, think how things would be if Clinton was in power. She wants to impose new taxes on us. If she ever got elected, I'd be drawing back from my agressive stocks, big time.....

RightsideVA said...

The stock market is a different one of the 90's in the sense the "Bubble" is not as fragile as the tech bubble that burst. There were way too many companies that NEVER showed a profit with outrageous growth from all of the hype. The investors are smarter and understand the market and those who don't read the NewsLeader also understand the economy better.

There are the "Googles" out there who have made impressive gains with producing what? but not as many as in the 90's...

Hillary needs to understand that over 50% of Americans are invested in the market one way or another and if she starts raising taxes to make it "Fair" as she sees it the economy and the 401k's will shrink. Simple economics but yet many do not know how it works. Not like the Public schools system is teaching economics or anything...

Steve Harkonnen said...

Int'l small company sep accounts are doing extremely well. High risk, of course, but worthy right now of moving money from your lower risk investments....also, take a look at Shoretel. They just went on the market last week. That is a growing company - big in the VOIP technology.

harescrambler said...

If Edwards was serious about helping s.wva. he'd be pushing for "clean coal" to turn coal, (which the u.s. is the Saudi Arabia of), into gas and diesel-oh wait, that was George Allens ideaa, wasn't it...

RightsideVA said...

Those mountains are full of Coal and there has been work done to turn coal to liguid fuel which will kick in once the market is there...

Interesting how a millionair lawyer that made his money on outrageous court cases can try to sit with the poor, which the Dems have done so little for, to call attention to their plight. If the Dem really wanted to help the job program would be there, quality education that teaches how economics work and why sound choices in life make all the difference....

But what does he care as long as they vote DEM who claim to care for them... Education is the key...

Newt said...

Newsleder is a joke and has a small following of Chrlottesvill wanna-bees. Thats why the Newslead takes the shots at Bush so they can be acceppted by their followers.

Nothing in the paper about the good economy for that would give Bush credit and take away the "Whine" factor the Newslead depends on...