Friday, May 02, 2008

It's the Economy Stupid --- Part 23

The New York Times may have put a little damper on CNN's producer’s agenda-driven economic tactics. CNN's "Issue # 1"----- ("it's the economy stupid") ----- that projects the doom and gloom of the nation’s economy might not have as much juice in the upcoming general election. Of course, when the "housing crisis" hit, (after four straight years of booming construction and inflated home prices finally hit it's ebb), the liberal mainstream media rode the mantra of economic doom praying for a market crash that would send us into their already proclaimed recession. Along the vain proclamation of Harry Reid’s "THE WAR IS LOST", the media's crescendo of economic disaster seems to have fizzled to the natural market forces:

Economic Clouds? Wall Street Sees Signs of Sunshine


Published: May 2, 2008

Main Street may be struggling, but Wall Street is on a bit of a roll.
Despite a drumbeat of bad economic news, the stock market is up — almost 11 percent in the last few weeks. Junk bonds, those risky corporate I.O.U.’s, are rallying. The value of financial shares, bank loans, tricky credit derivatives — up, up, up.

Many on Wall Street, the epicenter of the credit mess, seem to think that the worst is over. For the first time in months, analysts and executives sound upbeat again. Many of them see a broad, sustained recovery in both the economy and the financial markets coming in the second half of this year, a prediction some market strategists call hopeful at best.

Of course these "strategist" could just as well be all those retired generals the MSM located that also said the war is lost.

"Financial stocks and the broader market surged on Thursday as the dollar strengthened and oil prices fell for the third day in a row. The Standard & Poor’s 500-stock index closed up 1.7 percent, to 1,409.34 points; the Dow Jones industrial average notched a 189.87-point gain, to 13,010; and the Nasdaq composite jumped 2.8 percent. Another day or two like that, and those market benchmarks will be in the black for the year."

"It is a remarkable reversal in attitudes from just a few months ago, when the broader economy seemed relatively healthy but Wall Street was traumatized by billions of dollars in mortgage-related losses. Now, bankers and investors appear ready to look past the crisis to more profitable times, while consumers find themselves in a more precarious position as the job market weakens and banks make it harder to borrow money."

With the prime rate down to 2.0% it may be a bit difficult for the banks to restrict lending nor would they want to, but the Times writer here has to remain "bogged down". And as a general rule, employers cut their labor forces during the first quarter because, (also as a general rule), the volume of sales is usually at its lowest point. It’s a financial fact.

While the media's frenzy and over-reaction when an over heated economy (that left the MSM totally silent for the better part of three years) finally leveled off and corrections and profits were taken, the strength and wealth of this nation under the Bush administration policies of lower taxes and a "hands off" approach to natural market forces proves that an economy works best when the government stays out of the game. Yes, government spending policies have run amuck and need to be frozen. But if we put either Clinton or Obama into office, 800 billion in entitlement expansion and Hillary's "yes, I will raise your taxes" mentality will surely send this nations economy into a tail-spin.

While the remaining two democratic candidates march around the country proclaiming that "they will create jobs and put more people to work", neither of them realize that it is BUSINESS'S THAT CREATE JOBS THAT PUT PEOPLE TO WORK. And both them have policies they plan to enact that will be hardly business-friendly. Hillary plans to raise capital gains taxes to 39% and will not even commit to not raising payroll taxes. Both candidates plan to enact government sponsored health care plans that offer no explanation on how they are to be paid for. GUESS WHAT! ----- BUSINESSES AND AVERAGE SHAREHOLDERS OF "BIG BAD CORPORATIONS" WILL PAY FOR IT! Barack Obama claims he’s not slept since October on the Letterman Show. Putting either of these two into the White House will guarantee the people of this nation will go to bed with less money in their pockets while their socialist and redistribution of wealth policies become real nightmares.

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