DO YOU FAVOR THE STIMULUS BILL?
YES (WITHOUT THE PORK): 50%, YES 33%, NO 16% (3-2-1)
SHOULD GEITHNER BE APPROVED?
NO - 66% YES -33% (2-1)
WILL TROOPS BE OUT OF IRAQ BY JUNE, 2010?
YES - 66% NO - 33% (4-2)
WILL GUANTANAMO BE CLOSED BY FEB 2010?
YES - 83%, NO - 16% (5-1)
MONEY SHOULD GO TO
Green Energy Infrastructure - 83%,
Old Auto Industry -16% (5-1)
Friday, March 6, 2009
Thursday, March 5, 2009
Why the market continues to fall.
The Dow is at 6,594.44. The S&P 500 is 682.55. Obama's hope is not caring over to wall street. So why has the market fallen so far?
(1) Panic. People see the market fall, and try to get out while they still can.
(2) Value. Dividends are being cut and stocks are being nationalized. The recession makes the value of companies in the near future less valuable. The increase in the capital gain tax from 15% to 20%, a 33% increase, makes holding a stock less valuable.
(3) Cap and Trade. This would increase the cost of electricity (and thus the cost of production) for every company. Additional, those companies that produce C02 (like steal and electric companies) will be hard hit.
(4) Budget deficit. The massive spending proposed by the Obama administration and Congress will result in inflation in future years. This makes the value of dollar in future less valuable. Thus foreigners are less likely to buy stocks.
(5) Uncertainty. The massive changes in government makes investors uncertain on what new changes may be coming. Investors do not like uncertainty.
(6) Baby Boom. As the baby boomers move into retirement, they will need to sell their stocks. Without a new source of investors, the market will continue to be depressed.
Things that could happen to raise stock values. (1) The recession/depression will end. Increasing corporate profits and the ability to increase dividends. (2) The Republicans will take over and decrease the capital gains taxes. (3) Innovation. New companies/products arise that create value. (4) Global instability. Foreign capital rush to the U.S. for safety. (4) Global warming is found to be wrong.
(1) Panic. People see the market fall, and try to get out while they still can.
(2) Value. Dividends are being cut and stocks are being nationalized. The recession makes the value of companies in the near future less valuable. The increase in the capital gain tax from 15% to 20%, a 33% increase, makes holding a stock less valuable.
(3) Cap and Trade. This would increase the cost of electricity (and thus the cost of production) for every company. Additional, those companies that produce C02 (like steal and electric companies) will be hard hit.
(4) Budget deficit. The massive spending proposed by the Obama administration and Congress will result in inflation in future years. This makes the value of dollar in future less valuable. Thus foreigners are less likely to buy stocks.
(5) Uncertainty. The massive changes in government makes investors uncertain on what new changes may be coming. Investors do not like uncertainty.
(6) Baby Boom. As the baby boomers move into retirement, they will need to sell their stocks. Without a new source of investors, the market will continue to be depressed.
Things that could happen to raise stock values. (1) The recession/depression will end. Increasing corporate profits and the ability to increase dividends. (2) The Republicans will take over and decrease the capital gains taxes. (3) Innovation. New companies/products arise that create value. (4) Global instability. Foreign capital rush to the U.S. for safety. (4) Global warming is found to be wrong.
Wednesday, March 4, 2009
Obama and the Wizard of ID
"Margaret Thatcher: Socialism Eventually Runs Out of Money"
"The problem with socialism is you eventually run out of other people's money"
Sunday, March 1, 2009
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