Tuesday, March 18, 2008
Best Look of The Day - America's Economy....(?)
Way to go Dow!
America saw it's biggest day on Wall Street in over half a decade. For those of you who aren't good at math and/or don't read good, here is a play-by-play representation of of what hasn't happened in half a decade:
1 Decade = 10 Years
1/2 Decade = 10 Years * 1/2 = 5 years
Biggest Jump = 420+ points
Fed Interest Rate Cut = -0.75
Wal-Mart's gains (a stock that I hold) = + 1.03 (+ 2.06%)
Americans are ecstatic! The price of oil is still 9 bucks over 100, which means it won't be any cheaper for us to transport ourselves and our families to and fro. Yet, 400 points is big. Even though it's becoming increasingly expensive for me to buy my hypothetical girlfriend a gold necklace, 400 points is major.
Two basketball teams don't score 400 points in a game. A good number of the baseball players that have hit over 400 home runs were on steroids. And there has only been 2 or 3 days in my life when I have had over 400 dollars physically on my person while walking around or transporting myself in a motor vehicle. The price of gas for the said motor vehicle was understandably cheaper at the time, which permitted me to transport the money instead of transporting the money into my gas tank.
But in all seriousness, 400 points is huge - like Mt. Everest. My sarcasm should be carefully read. Instead of applauding the market's surge, we should look closely at the Fed's decision to make a move. A naturally correcting market leaves a great deal of collateral damage. We would love to think that the hand is invisible. But the hand should be quite apparent now. Although it should be reticent, the hand should be quite forceful in its approach to fixing an ailing or broken market.
Don't be fooled Americans. We won't wake up tomorrow and find reason to declare that fear of a recession has come and gone. However, we should wake up and hope and pray with all of our might that the hand holds steady. It will take careful guidance to lead our economy out of the troubled water in which it sits. When I look back on this entry in the coming weeks, I hope that I will find sufficient reason to write another reason to write a post cautiously and cynically championing the resurgence of the American market.
Until then, never forget that Wal-Mart provides the happiest shopping experience on Earth. Spend those rebates checks people. Spend them early and spend them often!