September 26, 2006

DEFLATION DOESN'T GO AWAY JUST BECAUSE YOU MISJUDGE IT:

Dow Closes at Second Highest Level Ever (Tim Paradis, 9/26/06, AP)

Wall Street surged higher Tuesday, carrying the Dow Jones industrials to their second-best close ever as positive economic data further buoyed a growing sense of optimism among investors. The Dow closed just 53 points away from its record high close. [...]

Jack Albin, chief investment officer with Harris Private Bank, said the market's advance reflects widespread investor enthusiasm and a realization that the Federal Reserve might have room to ease short-term interest rates. He pointed to low inflation and the recent nearly 20 percent pullback in oil prices.

"The Fed has a lot more elbow room to lower rates. The Fed could maybe even lower this year."

Posted by Orrin Judd at September 26, 2006 6:53 PM
Comments

We're on the brink of having the worst economic crash since Herbert Hoover was president.

Posted by: Jayson at September 26, 2006 7:17 PM

How did Bush do it? First, he lowered the oil price, then he raised the stock market. Do all that just to deprive the Dems their power. Chavez was right. Bush is the Devil.

Posted by: ic at September 26, 2006 8:00 PM

When the Dow sets a new high, it will be interesting to see how the story is played in the non-business section of newspapers and on the channels other than CNBC. Back during the Clinton years, ever new high was met with an even greater huzzah and by claims that under the then-current administration and its Gore-spearheaded bond to new technology, the business cycle had been repealed. Somehow, I don't think a new record anytime soon will produce similar musings.

Posted by: John at September 26, 2006 9:28 PM

Jayson - you forgot the sarcasm qoutes.

Posted by: AWW at September 26, 2006 11:32 PM

John: it's actually very simple, and Jayson has it down pat. If there is a new high in the Dow, the meaning of it depends upon the political situation:

-- if the Left is in power, it is a reflection of the wise benevolence of the Dear Leader and herald of a new golden age of permanent prosperity and economic equality.

-- if anyone other than the Left is in power, it's a harbinger of the worst economic crash since Herbert Hoover was president, which, when it comes, will be karmic payback for greed and tax cuts and having too many Christers in the government who don't support gay marriage and a Woman's Right To Choose.

Posted by: Mike Morley at September 27, 2006 7:02 AM
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