1. A false rumor that the Fed would cut rates by 1% by the end of the year.
2. Meaningless certifications of financial results by executives which has no real effect on corporate profitability or economic conditions.
3. Larry Lindsey hyping tax breaks for investors, which may create some demand for stocks, but will ultimately cause a condition in which stocks become way overpriced again.
The basic economic facts however have not changed:
1. Jobs continue to be lost and fewer new jobs are being created. The total number of workers getting unemployment benefits continues to grow. Additionally, more workers' benefits are expiring before they can get jobs. The avaerage hours worked per employee continues to decline.
2. Consumer, corporate and government debt continues to grow at record levels.
3. Consumers are begining to get tapped out. Credit is being maxed out. Unemployment benefits are expiring. Aggregate take home pay is declining due to fewer hours worked.
4. Retail traffic and sales are getting worse. A number of retailers have already warned that back to school is not doing well.
5. Personal and corporate bankruptcies are continuing to grow. The Ames liquidation is only 21,000 jobs lost. When Kmart liquidates, that will be over 200,000 jobs lost. When the airlines file for bankruptcy it will mean hundreds of thousands more out of work.
6. Wall Street and the government are desperate for any kind of hype to create sucker's rallies, i.e., rate cut rumors, meaningless and worthless certifications of financial results, talk of investor tax breaks, and finally, bailouts for Uruguay, Brazil and Argentina and maybe some others. Oh, I forgot to mention that Bush and Oneill are hyping up the economy on a daily basis while all of this bad shit is going on.
It seems like this is a very bad time to be buying stocks.
Don't forget that no one is going to the movies either......
Also, with the Ames closing its going to result in a huge economic downfall, because Adirondack cola will not have a retail outlet to distribute there worthless teeth rotting fluids.
Next Lily popcorn will respond by being upset that they could not see there great kernels of corn featured next to the other pile of crap down aisle 2 of the local Ames store.
If you are retired, I suggest you go to the local senior citizens center and talk to someone else that is as senile as you. If your middle aged and working or (if i am paying you, which seems to be the case) please take this suggestion and shut the hell up.
Your economic rantings are crafted so well. Go to school and put your creativity to work, because your way out in left field with a fly ball coming at you, my guess would be that you will drop it, or it will hit you square in the head. Jackass.
Hey! Don't knock Adirondack cola. It's the only Kosher cola that I know of and it's made from the purest water. I noly wish Ames was still n Chicago so I could buy some.
Lily popcorn is the greatest popcorn around and the best buy too. It's light and fluffy with NO hulls whatsoever and no unpopped kernels. The stuff at Walmart, Kmart and Target tastes like crap compared to Lily from Ames.
It seems like these two companies may be seriously affected since Ames was the only discounter carrying their products.
Millions of consumers will miss the great bargains at Ames, especially now that they need them the most.
I checked out Kmart, Target and the movies again today and all three were doing very poorly again.
I don't know if we are paying now for Clinton's "Presidency". I don't know if the boomimg economy and stock market that we had before was because of Clinton or not. I can't say that the problems we have now are beause of Bush or Clinton. I really don't know.
All I know is that Wall Street, Greenspan, Bush, Oneill and many many others are using every trick in the book to help prop up the stock market. I suppose that is what they should be doing. That is what Clinton did when he was president. I guess we could say that Clinton just got lucky. What worked for him doesn't seem to be working for Bush.
During Clinton's final years we had record job creation, record economic growth and government budget surpluses. But corporate debt and consumer debt kept on growing.
Now we have decining job creation, layoffs, growing budget deficits, increasing bankruptcies, weakening retail sales, and growing consumer and corporate debt, plus much much more bad stuff.
It doesn't matter much whose fault it is or why it is happening. What's important is that it probably won't get much better soon and the hype and tricks that Bush and his helpers are using don't seem to be working as well for him as they did for Clinton.
I suspect that in the next crash, which may happen in a few weeks, many of the stocks which have done well recently will start to come down.