Skip to main content

View Diary: Liberal Senate Dems Ready to Take On GOP, Wall Street (95 comments)

Comment Preferences

  •  Proposed frame for this argument (3+ / 0-)
    Recommended by:
    JanL, jfromga, coffejoe

    "We must put a cop back on the beat on Wall Street. Too many grandmothers have been mugged there in the last decade."

    With a Law and Order message, we win this fight.

    And considering DOW hit 11,000 today, I think the markets appreciate having adults in charge, finally.

    "One man alone can be pretty dumb sometimes, but for real bona fide stupidity nothing beats teamwork." - Mark Twain

    by greendem on Mon Apr 12, 2010 at 06:24:36 PM PDT

    •  Dow Jones is up...BECAUSE grandmother was mugged (2+ / 0-)
      Recommended by:
      cowgirl, squarewheel

      Adults in charge? Sure. But a corporatist adult. The Dow Jones index is a terribly misguided proxy for the overall health of the US economy. It is based on the stock performance of the following companies:

      3M, Alcoa, AE, AT&T, BofA, Boeing, Caterpillar, Chevron, Cisco, Coca-Cola, DuPont, Exxon, GE, HP, Home Depot, Intel, IBM, J&J, JPM, Kraft, McD, Merck, Microsoft, Pfizer, P&G, Travelers, UTC, Verizon, Wal-Mart, and Disney.

      The value of a stock is fundamentally based on future expected company profits. Is company profits necessarily bad? Absolutely not. If it is based on technical innovation or new export markets it is great.

      But you have to dig a bit deeper. The main reasons stocks rebounded are:

      1. The administration has communicated that consumption levels will be artifically bolstered at any expense (zero interest rates, stimulus funds, tax credits/breaks, etc)
      1. The administration has communicated that large companies are too-big-to-fail and will be saved at any expense for the taxpayer.
      1. The administration has communicated it is rejecting any ideas that may cut into the corporate support and/or share of the pie (EFCA not happening, subsidies to Wall Street, Big Oil, MIC, Phrma, AHIP, Food Inc. etc, etc, remain)

      If you don't own any stocks yourself, you do not benefit at all from the stock market's rise. In fact, you have as a taxpayer helped to boost stockholders' value, by guaranteeing their assets with your tax money. If you have any money in the bank, your interest is withheld, in order to spur their investments and increase your bank's profit.

      Dow cheerleading by progressives at this point makes little sense whatsoever.

      Why again are we celebrating increased expected profits for the 30 largest corporations in this country?

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site