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re: Why has the Dow Jones done so well under the two recent Democratic presidents?

Posted on 12/28/14 at 10:26 am to
Posted by tigress4life
BR
Member since May 2007
956 posts
Posted on 12/28/14 at 10:26 am to
quote:

jeff5891


These "massive gains" are simply "bubbles" that are artificially made, and rich people will get richer and the "bubble" will burst as it always does and then taxpayers as usual will be charged to make repairs to whatever sector this bubble formed in.

There is a big difference between "Wall Street" and "Main Street". A healthy Wall Street has little to do with a healthy economy which would benefit all.

The middle class which lives on "Main Street" is not doing well, is shrinking, and during this Dem presidency has seen its personal wealth level set back to Dem prez Carter's term.

Beginning with O's term the Fed has pumped 30+ billion monthly, then as O's recovery failed,that amount was raised to 80+ billion a month into the economy. This money is not based on anything; it is a "debt" and is being financed by the issuance of bonds which China has been buying since O took office. During O's first term China was provided a direct line to purchase this "debt", an arrangement this is unprecedented in the history of the U.S.

Both the artificial low level of interest rates and the pumping of worthless money into the economy aside; Wall Street's wealth is made on "bubbles" formed in various sectors of the economy.
It is no longer tied to a manufacturing base as it always had been. The final blow to an economy based on manufacturing came when Clinton gave permanent status for most favored nation to China finishing decades of destruction of an manufacturing economy by Democrats.

"bubbles" in the sectors of the economy have and will always burst. The housing industry/finance "meltdown" was simply that "bubble" bursting. Bush warned the Dems running Freddie/Fannie 18 times in one year of this, because the decisions Dems made which caused the bubble aren't based on any sound financial principles.

Mind you also if a crony of the Dem prez a big contributor knows what the prez will do, they can invest accordingly. For example the denial of Keystone has less to do with appeasing the eco-lunatics than with appeasing big investor/donors who would lose money if the method of transporting that oil would change.

The only thing to be learned is we have a bubble economy, thanks to the Dems, and when the bubble forms rich investors will make lots of money, and when it bursts the taxpayer will be called upon to pick up the pieces, duh.

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