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Thursday, April 26, 2007

The Stock Market Continues to Boom

The Stock Market broke 13,000, breaking a new milestone in its continued growth. That is the 35th record broken since October of 2006. Why the continued growth? New home sales are rebounding, companies are demonstrating record returns, and the unemployment levels are incredibly low.

This happens, in spite of the fact that the media continues to beat its negative drum. In fact, this is the toughest time I have seen for the Republican Party in many respects since the 1970s (post Watergate); in spite of incredible economic performance they are fighting for their political lives and have no clear leader to make sure they maintain the White House after 2008.

The growth of the economy is partially due to divided government. In spite of pledges to bring sweeping policy changes for the President to sign into law, the Democrat led Houses of Congress haven't brought a single piece of legislation down Pennsylvania Avenue for him to sign. "Do-nothing" governments often mean economic environments where businesses can grow. Furthermore, the business community's disregard of the pessimism promoted by the media keeps it humming along. The media has "cried wolf" so often, many no longer consider it a legitimate source of information of how business is performing, meaning businesses will listen to one another and operate on its own instincts. That is an essential part of the "invisible hand" of the free market that makes economies grow.

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1 Comments:

Anonymous Andrew said...

Why can't Bush get a break? In spite of this long term prosperity he continues to take a beating.

1:23 PM  

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