Dow Breaks 10,000!!! Damn that Obama!!!!

Forums: Finance, Politics, Economy, Stock Market, Dow
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try to remove that haters...

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Type: Discussion • Score: 15 • Views: 4,899 • Replies: 53

[+6] - engineer - 10/14/2009The stock market is a leading indicator, unemployment is a lagging indicator. Hopefully this means that we should see gains in employment in a couple of quarters. It seems like all the pundits...
[+6] - engineer - 10/15/2009We should expect the debt to get better during good times and worse during bad times. Reagan dramatically (at the time) increased deficit spending during bad times. Clinton dramatically decreased...
[+4] - parados - 10/15/2009The debt is getting worse because the government has reduced revenues because of a recession and because the government is deficit spending like they should during a recession to help mitigate its...
[+3] - Cycloptichorn - 10/14/2009[quote="McGentrix"] I know, right? He is doing such a good job! [quote]Nonfarm payroll employment continued to decline in September (-263,000), and the unemployment rate (9.8 percent)...
[+3] - Francis - 10/14/2009[quote=foofie]And, who does the higher stock market benefit? The unemployed? [/quote] For example, yes.. It profits a lot of humble people that invested their savings in stocks as a...
[+3] - DrewDad - 10/14/2009[quote="Foofie"]And, who does the higher stock market benefit? The unemployed? [/quote] Yes. Companies are better capitalized, which means they can start growing and hiring again.
[+3] - DrewDad - 10/14/2009Depends on whether they own some of their own stock or not. In my experience, most companies do.
[+3] - Setanta - 10/15/2009Ask Bush . . . he's the one who f*cked the nation without a condom . . .
[+3] - Setanta - 10/15/2009I'm not obliged to answer your tendentious questions, clown. And i'm entitled to point out the hypocrisy of conservatives who are so eager to blame Mr. Obama for a situation which he did not...

I know, right? He is doing such a good job!

Quote:

Nonfarm payroll employment continued to decline in September (-263,000), and the unemployment rate (9.8 percent) continued to trend up, the U.S. Bureau of Labor Statistics reported today. The largest job losses were in construction, manufacturing, retail trade, and government.

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since march of this year the DOW is up 54%.

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And, who does the higher stock market benefit? The unemployed?

Does this mean that Obama's policies are spreading the wealth from the unemployed to the rich? I need to reread the story of the Trojan Horse.

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@McGentrix,

McGentrix wrote:

I know, right? He is doing such a good job!

Quote:
Nonfarm payroll employment continued to decline in September (-263,000), and the unemployment rate (9.8 percent) continued to trend up, the U.S. Bureau of Labor Statistics reported today. The largest job losses were in construction, manufacturing, retail trade, and government.

link

I agree that the Dow isn't a good barometer of overall economic performance.

But that didn't stop our mouth-breather contingent from blaming the DROP in the Dow on Obama's policies. Okie is purely convinced that this is the case, so is Ican, both went on about it for months. So where's the credit he gets for supporting policies which raised it?

Cycloptichorn

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foofie wrote:

And, who does the higher stock market benefit? The unemployed?

For example, yes..

It profits a lot of humble people that invested their savings in stocks as a retirement plan.

It profits also the national economy, if the market reflects the real value of companies.

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@McGentrix,

The stock market is a leading indicator, unemployment is a lagging indicator. Hopefully this means that we should see gains in employment in a couple of quarters. It seems like all the pundits have moved from "the economy is still falling with no bottom in sight" to "3% growth in the second half" in the last couple of months.

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@Foofie,

Foofie wrote:

And, who does the higher stock market benefit? The unemployed?

Yes.

Companies are better capitalized, which means they can start growing and hiring again.

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@DrewDad,

That only holds true if the company issues new stock right? Otherwise is stockholders who are better capitalized.

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@maporsche,

Depends on whether they own some of their own stock or not. In my experience, most companies do.

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Bush proved it's easy to drag down a nation with ignorance and hubris. I now feel we have someone at the helm who really cares about solving the problems we face. Obama is still learning you can't please all of the people, all of the time, but a least he's trying to stabilize a difficult situation. It will take more than one man's efforts to succeed, but I no longer feel like I'm watching America swirl down the world's toilet as I did 16 months ago. I think I'm going to buy some stock tomorrow.

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@DrewDad,

Yes, and in my experience they don't often sell off their own shares.

So how does higher stock price beneit the company financially?

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I think you are right, maporsche. A company that has surplus cash often buy its own shares (which become known as "Treasury Stock"). I believe those share are retired. Companies do this to reduce the supply of shares out there and, in theory drive up the price of the remaining shares held by the public. At a later time, if the company wants to expand it can issue new shares in a public offering at the higher price.

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@maporsche,

Higher stock prices are indicators, not causes. Rising prices are indicative of higher earnings and better cash flow. Those help companies dramatically. My employer has been hoarding cash since the fourth quarter, but seeing the overall improvement in the economy and its own cash flow just purchased another company for cash. We've also been increasing capital spending seeing improvements in our markets. If other companies are seeing the same, we could be in for a few quarters of good growth.

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@maporsche,

maporsche wrote:

So how does higher stock price beneit the company financially?

Because it shows as an asset on their books.

It frees up cash, or allows them to borrow, or gives them any number of options.

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@DrewDad,

I don't think so, Drewdad. How does the price of a share of stock show up on the balance sheet?

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@realjohnboy,

If they bought another company's stock it would show as an asset, correct?

If they buy their own stock, it shows as an asset.

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@DrewDad,

Pretty sure it doesn't work that way.

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If they bought shares in another company's stock, it would show up as an asset AT COST. There is no "mark to market" if the price goes up or down.
I'm getting a bit more confident that a company can not buy its own shares with the idea of reselling them later.

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Maybe I'm all wet. Wouldn't be the first time.

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Dow Breaks 10,000!!! Damn that Obama!!!!

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