Recessions Cause Vote Buying
There are a few reasons I believe that. One, the huge jumps we've had in recents day. I don't believe those are being driven by action taken in Congress for a stimulus package. Why? Because most economists believe that it won't stimulate anything other than voter turnout.
I believe bargain hunters came into play. I believe people saw companies like EMC (I use it as an example only because I know a bunch about it) down at $15.00, where it hasn't been since the summer months, and made a mad dash to buy, especially since the company is due to announcing earnings next week.
VM Ware, another one I know about, also hit a low at $70 some odd dollars, and they too will announce earnings next week. Bargain hunters know this and they can make a quick 15% on their investment with the proper purchases.
My main reason that I think the recession was media driven? Because even when oil was at $100, the market held it. In fact, no body really batted an eye. Stocks started falling when banks had to announce that foreign investors were bailing them out, as is natural, but the precipitious decline I believe, was due in large part to a media frenzy and the 24 hour news cycle.
Now ... does this mean I don't think a recession could happen? No. I think the 500 point drop and the speed of that drop we saw was media driven. It may have happened on it's own over a different course of events. But I still believe that a recession is a market correction that needs to happen to get investors out of housing. And I think builders need to stop building so inventory can be bought up.
But again, maybe that's media doomsday reporting.
All I know, is I feel slightly better. But I'll feel even better after companies report their earnings and see how they are doing. I already read this ...
So for all their talk about how the 5% unemployment was the impetus to throw us into the doldrums of a bear market ... well it turns out that that may have not been the case.
Speaking of rebates. If you're smart about that rebate check ... you'll save it. MSN has a ridiculous list out of 6 thing to do with your rebate check. Pigs at a trough I swear.
My favorite one:
Sorry mister ... it's not free money. At least not for those of us that pay income taxes. It's just money that we already earned that we already paid to federal income tax that we are getting back. Uncle Sam doesn't just make "free money." I don't even want to tell you what Lewis and I paid in fed income tax last year. It's mind boggling. And most Americans work until May just to pay their taxes. 5 months of work! Just to pay taxes!
Oi vay. I still say it's a stupid idea without any budget cuts. We have a huge deficit, this will only add to it. And for people that are SOOOOO against funding soldiers, they (Congress) sure love giving money to people who don't even contribute (people who don't pay income tax still get rebates).
Another great quote:
Yeah I bet it was hard figuring out how to give funny money away during an election year. I'm sure. And Washington is still broken. $5 Trillion dollar deficit ... meet $116B stimulus package. It's funny to me that when talking about the military and the war, it's all deficit all the time. But with the stimulus package and the thankfully dormant S-CHIP legislation, mum's the word.
I can tell you right now, I'm tempted to send it back. Their just going to take it from me anyway after November. Heck, to them, the $1,200 their giving me now is chump change compared to what their going to start taking should a democrat get elected.
So in that vien ... you might want to save that rebate check and maybe not buy the latest iPod or Blue Ray player. Which, by the way, are all made in China so you aren't helping the US economy anyway.
Stimulus plan. Pffffuh. More like vote buying plan.
I believe bargain hunters came into play. I believe people saw companies like EMC (I use it as an example only because I know a bunch about it) down at $15.00, where it hasn't been since the summer months, and made a mad dash to buy, especially since the company is due to announcing earnings next week.
VM Ware, another one I know about, also hit a low at $70 some odd dollars, and they too will announce earnings next week. Bargain hunters know this and they can make a quick 15% on their investment with the proper purchases.
My main reason that I think the recession was media driven? Because even when oil was at $100, the market held it. In fact, no body really batted an eye. Stocks started falling when banks had to announce that foreign investors were bailing them out, as is natural, but the precipitious decline I believe, was due in large part to a media frenzy and the 24 hour news cycle.
Now ... does this mean I don't think a recession could happen? No. I think the 500 point drop and the speed of that drop we saw was media driven. It may have happened on it's own over a different course of events. But I still believe that a recession is a market correction that needs to happen to get investors out of housing. And I think builders need to stop building so inventory can be bought up.
But again, maybe that's media doomsday reporting.
All I know, is I feel slightly better. But I'll feel even better after companies report their earnings and see how they are doing. I already read this ...
Another bright spot was data on Thursday showing the number of U.S. workers applying for jobless benefits last week fell unexpectedly to a four-month low, suggesting the labor market remained stable even as the economy slowed.
So for all their talk about how the 5% unemployment was the impetus to throw us into the doldrums of a bear market ... well it turns out that that may have not been the case.
Speaking of rebates. If you're smart about that rebate check ... you'll save it. MSN has a ridiculous list out of 6 thing to do with your rebate check. Pigs at a trough I swear.
My favorite one:
Throw it at your credit cards. It's free money that can go toward very expensive money. Save it for one of your irregular bills. Got money for your next insurance payment? Car registration? Snow tires?
Sorry mister ... it's not free money. At least not for those of us that pay income taxes. It's just money that we already earned that we already paid to federal income tax that we are getting back. Uncle Sam doesn't just make "free money." I don't even want to tell you what Lewis and I paid in fed income tax last year. It's mind boggling. And most Americans work until May just to pay their taxes. 5 months of work! Just to pay taxes!
Oi vay. I still say it's a stupid idea without any budget cuts. We have a huge deficit, this will only add to it. And for people that are SOOOOO against funding soldiers, they (Congress) sure love giving money to people who don't even contribute (people who don't pay income tax still get rebates).
Another great quote:
Boehner said the agreement "was not easy for the two of us and our respective caucuses."
"You know, many Americans believe that Washington is broken," Boehner said. "But I think this agreement and I hope that this agreement will show the American people that we can fix it and will serve to move along other bipartisan agreements that we can have in the future."
Yeah I bet it was hard figuring out how to give funny money away during an election year. I'm sure. And Washington is still broken. $5 Trillion dollar deficit ... meet $116B stimulus package. It's funny to me that when talking about the military and the war, it's all deficit all the time. But with the stimulus package and the thankfully dormant S-CHIP legislation, mum's the word.
I can tell you right now, I'm tempted to send it back. Their just going to take it from me anyway after November. Heck, to them, the $1,200 their giving me now is chump change compared to what their going to start taking should a democrat get elected.
So in that vien ... you might want to save that rebate check and maybe not buy the latest iPod or Blue Ray player. Which, by the way, are all made in China so you aren't helping the US economy anyway.
Stimulus plan. Pffffuh. More like vote buying plan.
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