Here’s the Dow over the past year:
What I want to know: Is the recent surge above 14000 due to the prospect that the cuts to the social insurance programs was a fait accompli? Or is it just because the financiers have free and unfettered access to the treasury in the form of trillions of dollars of our money?
What would happen if the sequester continues for a period of time but the social insurance cuts, specifically to Social Security, are off the table? Will The Market sink like a stone? I want to know who is really in charge here.
So, let the sequester happen and let’s not rush to negotiate an end to it.
Let’s see what happens.
Filed under: General | Tagged: medicare, social insurance programs, Social Security, The Market |
The Confluence 
My guess for the good DJI/S&P growth is that companies have been able to be very profitable despite a no growth economy. The profit are the result of continued low salaries for workers (those who still have jobs) and lower number of employees. Cost cutting has been the main driver of higher profits. The policies of the Fed (Bernanke) are much more influential to the market than what politicians do, imho.
Correction: The profits are the result
One more thing. If the sequester is implemented, I believe it will have almost no impact on the economy. The sequester cuts are too small to make a difference.
Tell that to my sister whose husband is a head librarian in Phillly; one two many “furloughs” and they won’t be able to pay their utilities.
I said the “economy”. Individually some people will see the implication of the cutbacks. The U.S. economy is huge. I’ve read that the impact is something like .6%
That will be such a comfort to them.
Obama and the Catfood Depublicrats plan to conduct the sequester cuts in such a way as to create maximum havoc and jobicide throughout the economy, deliberately and on purpose, in hopes that their Vichy Leftist spokes-scum can manipulate millions of victims into “calling their Congressman” and demanding that Congress cut Social Security and Medicare in return for making the sequester stop.
That was the whole reason why Obama and the Catfood Democrats
developed the sequester to begin with. And why would Obama and the Catfood Democrats le “let a good crisis go to waste” when they are the people who took such pains to engineer and build this crisis to begin with?
agree
You lose your job– it’s a Recession; I lose my job– it’s a Depression. Many people are recessed, depressed, and Depressed. It’s a formula for social upheaval.
I think part of why the stock market is going so-called “up” is because the Bernanke Fed has kept interest rates so very zero for so very long. His/its purpose is to destroy interest-income streams for millions of people whose modest retirements depend in part on modest
interest streams from modest savings. The game is to torture them into moving their money out of savings and into the stock market in a desperate hope gamble of making some kind of survival yield.
Those savers who can mount a resistance to this Bernanke plan can risist best by taking the pain to their interest stream and refusing to flush their money down the stock market toilet. Lets hope they can take the pain longer than Bernanke can apply it.
agree again
I’m so tired. Like we’re playing Limbo in a sinkhole. How low can we go? It never stops.
Man the pitchforks!