It is rather peculiar that when gas prices were at $3.00 a gallon on the way to $4.00 and no end in sight, the media played their gloom and doom game and blamed President George W. Bush. This was going to loom on voters minds come November many pundits stated and they would blame GWB. A funny thing happened on the way to the forum, a barrel of oil now sells for below $59.00. Look for this decline to translate at the pumps again as well.
The drop extended a 6 percent slide over two days, pressured by ample fuel stockpiles in top consumer the United States and no evidence of other OPEC members joining Nigeria and Venezuela in cutting output.
Another amazing thing has happened while Democrats were calling this the worst economy since the Great Depression. The Dow Jones industrial average ended the today’s session at 11,727.34, breaking the previous record of 11,722.98. Welcome to “Hooverville” I guess.
Put all your party politics aside and that GWB is evil. We all need to really comprehend what a remarkable accomplishment this is and a testament to the USA. This record high is not a result of a fabricated “.com bubble.” The Dow Jones had to recover from the disastrous tech stock collapse, 9–11, corporate scandals and hurricanes. Even after all that, The Dow Jones is not at an all time high.
To reach new highs, the Dow had to recover not only from the high-tech collapse, but also recession and the effects of the Sept. 11, 2001, terror attacks. The stock market was further shaken by corporate scandals at companies including Enron Corp. and WorldCom Inc., and the Dow sank to a five-year closing low of 7,286.27 on Oct. 9, 2002, nearly 38 percent off its record high close.
The market’s recovery was helped by more than four years of solid corporate profit growth, and more recently, the Federal Reserve’s decision to halt its more than two-year string of interest rate hikes. (Breitbart)
This is an amazing accomplishment having faced the many pitfalls and especially when considered that the numbers are based on real earnings, solid performances and not a fabricated ponzi scheme of corporate malfeasance, cooked books and .com speculation that was the past recent high. Those that are honest need to give credit where credit is due. But alas, that will never occur. If the economy was in the tank the President would be railed; however, we a robust economy and gas prices surging to below $2.00 a gallon the media’s silence is deafening.
UPDATE: (10/4/06) Brent oil price dunks below 58 dollars in London
UPDATE II: Dow Hits New High After a Long Recovery
“We have less of an extreme today. Back then, it was the screaming tech stocks, and everything else was marking time,” said Bob Doll, president and chief investment officer of Merrill Lynch Investment Management. “This is somewhat healthier. Back then, it was just a few stocks that were leading the way, and unless you owned those stocks, it was hard to keep up. . . . Today there is no leadership. It’s one group today and another tomorrow.”
There are other signs that suggest this rise in the stock market is less speculative than the one that crested in 2000. (Washington Post)
UPDATE III: (10/4/06) Dow continues rally, closes up more than 123
Investors ignore mixed economic news day following historic close
The impetus for Wednesday’s big push higher was a growing feeling on Wall Street that the Fed might begin lowering rates soon. Investors appeared to take comfort from comments by Fed Chairman Ben Bernanke that the slowing housing market could be a drag on the economy, perhaps shaving 1 percent off of gross domestic product growth in the second half this year and into next year. (MSNBC)