Dow makes it past the 17,000 mark in a sign of the economy improving.
11 replies, posted
[QUOTE]Traders got cake and ice cream last week—news of stellar jobs growth in June, with a delicious topping of ultra-low interest rates. The double treat sent the Dow Jones Industrial Average over 17,000 for the first time ever, and left the Standard & Poor's 500 index within striking distance of 2000.
The economy added 288,000 jobs in June, and the previous two months' tallies were revised higher by a total of 29,000 jobs. Earlier in the week, Federal Reserve Chair Janet Yellen reassured investors that the Fed wasn't expecting to raise interest rates soon in order to deflate bubbles in financial markets.[/QUOTE]
[url]http://online.barrons.com/news/articles/SB50001424053111904544004579650510623118896[/url]
To the moon!
As someone who owns a bit of stocks, woohoo, I'm up quite a bit this year.
Nice. Maybe when it crests 18K employers will stop requiring 2-5+ years of formal work experience for the most menial of minimum wage shit?
[QUOTE=TestECull;45297598]Nice. Maybe when it crests 18K employers will stop requiring 2-5+ years of formal work experience for the most menial of minimum wage shit?[/QUOTE]
"where the fuck am i supposed to get 2-3 years of sales experience for this job if i need 2-3 years everywhere ;-;"
[IMG]http://media2.giphy.com/media/ZfktDxMNQuuIM/giphy.gif[/IMG]
Only this time, the people outside the investment class won't get a chance to enjoy any prosperity before the bubble pops. We didn't fix the financial system last time, so there is no reason to think history won't continue to repeat itself.
Hooray, too bad most people won't feel it because that money doesn't exactly come back to us anyway!
Yeah! The economy is booming guys we did it! Any minute now all us average citizens are gonna get our once in a lifetime bonus. Any minute now.
DOW =/= indicator of "real" economy
All that number means is that hedge funds, and people like Warren Buffet just made a shitload of money. After the Lehman collapse in 2008 most normal people who were invested in the market, most likely through their employer in the form of a 401K or pension, either watched their retirement money go up in smoke or took whatever they had left to keep their home, send their kids to school or feed themselves when they lost their job.
Nothing is truly better in this post-2008 economy, the wealth gap is immense, a grotesque number of people in the "worlds greatest country" go to bed hungry and most people who are working are doing so making less than they were OR stopped looking all together and aren't counted as part of the workforce anymore.
Also it's been virtually unrestrained growth on the markets since almost 2011, thanks to the fed quantitatively easing billions into the market each month for years now. The ebb and flow between bear and bull has shrunk with no re-adjustment. In other words, look at a 10y trend and tell me that it doesn't look a lot like pre-Lehman.
Fundamentally nothing has improved.
Congrats! We are experiencing another economic bubble.
I just can't wait for it to crash, again.
There's a couple of theories behind the sudden job increase of 288,000. For one, the whole thing is a bit odd as GDP shrank as jobs actually increased, making it an odd question why employers would be so willing to hire.
The main theory is that many Baby Boomers who have lost their job or have had to come out of retirement can't find well paying jobs, and therefore have to accept low paying part-time jobs. A great portion of the jobs of the 288,000 are indeed part-time. Another way to view it is that the economy is generally improving, and that is certainly supported by looking at the Dow Jones Industrial Average. Though we're improving, I'd say they're still people recovering from the Great Recession.
[QUOTE=Aide;45299480]Yeah! The economy is booming guys we did it! Any minute now all us average citizens are gonna get our once in a lifetime bonus. Any minute now.[/QUOTE]
No one gives a shit.
[QUOTE='Poesidan [GAG];45299673']Another way to view it is that the economy is generally improving, and that is certainly supported by looking at the Dow Jones Industrial Average.[/QUOTE]
Do you even know what the DJIA is? It's an average of 30 companies (3M, AmEx, AT&T, Boeing, Caterpillar, Chevron, Cisco, Coca-Cola, DuPoint, Exxon, GE, Goldman Sachs, Home Depot, Intel, IBM, J&J, JPMorgan, McDonalds, Merck, Microsoft, Nike, Pfizer, P&G, Travelers, UnitedHealth, United Tech, Verizon, Visa, Wal-Mart and Walt Disney.)
An average of those companies is not indicative of any economy at large, it's indicative of how well those companies are doing on the stock market. And those 30 are not fixed, many have been added, removed and replaced over the 128 year history of the DJIA.
The profitability of some of those companies is more indicative of how well they're doing at fucking over consumers.
Sorry, you need to Log In to post a reply to this thread.