15
   

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

 
 
Reply Wed 14 Oct, 2009 12:15 pm
Laughing Laughing Laughing try to remove that haters...

http://img.photobucket.com/albums/v288/stevetheq/foot-in-mouth-1199.jpg
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Type: Discussion • Score: 15 • Views: 5,035 • Replies: 53

 
McGentrix
 
  -2  
Reply Wed 14 Oct, 2009 01:06 pm
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
dyslexia
 
  2  
Reply Wed 14 Oct, 2009 01:52 pm
since march of this year the DOW is up 54%.
0 Replies
 
Foofie
 
  0  
Reply Wed 14 Oct, 2009 01:53 pm
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.
Cycloptichorn
 
  3  
Reply Wed 14 Oct, 2009 01:56 pm
@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
Francis
 
  3  
Reply Wed 14 Oct, 2009 01:59 pm
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.
0 Replies
 
engineer
 
  6  
Reply Wed 14 Oct, 2009 02:00 pm
@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.
0 Replies
 
DrewDad
 
  3  
Reply Wed 14 Oct, 2009 02:38 pm
@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.
maporsche
 
  1  
Reply Wed 14 Oct, 2009 03:06 pm
@DrewDad,
That only holds true if the company issues new stock right? Otherwise is stockholders who are better capitalized.
DrewDad
 
  3  
Reply Wed 14 Oct, 2009 03:12 pm
@maporsche,
Depends on whether they own some of their own stock or not. In my experience, most companies do.
Green Witch
 
  2  
Reply Wed 14 Oct, 2009 03:25 pm
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.
0 Replies
 
maporsche
 
  1  
Reply Wed 14 Oct, 2009 04:30 pm
@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?
realjohnboy
 
  1  
Reply Wed 14 Oct, 2009 04:41 pm
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.
0 Replies
 
engineer
 
  2  
Reply Wed 14 Oct, 2009 05:10 pm
@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.
0 Replies
 
DrewDad
 
  1  
Reply Wed 14 Oct, 2009 05:57 pm
@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.
realjohnboy
 
  1  
Reply Wed 14 Oct, 2009 06:02 pm
@DrewDad,
I don't think so, Drewdad. How does the price of a share of stock show up on the balance sheet?
DrewDad
 
  1  
Reply Wed 14 Oct, 2009 06:04 pm
@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.
maporsche
 
  1  
Reply Wed 14 Oct, 2009 06:07 pm
@DrewDad,
Pretty sure it doesn't work that way.
0 Replies
 
realjohnboy
 
  1  
Reply Wed 14 Oct, 2009 06:17 pm
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.
DrewDad
 
  1  
Reply Wed 14 Oct, 2009 06:21 pm
Maybe I'm all wet. Wouldn't be the first time.
 

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