2014-06-28

Obama's Economy; Stock Market Activity Is Not An Indicator Of Overall Economy

2.9% growth.

Wait a sec, that's not right.

-2.9% for the first quarter of 2014.

By now, Americans were told and reassured all of Obama's measures and suggestions (no budget (because GOP), stimulus, pay your fair share tax rhetoric, increase minimum wage, and Obamacare) were supposed to repair the economy.

There's still the rest of the year to turn things around. Though I wouldn't hold my breath. Obama is not a free-market President. Simple as that.

But, T.C., what about the stock market! Corporate earnings are up!

I love when progressives - who hate corporations with a mad passion - single out just corporate earnings as proof of something to push their hopelessly inept point of view on matters of finance and money. As if corporate earnings is the 'only' measure of how the markets are doing.

'Free shit' people shouldn't be commenting on stocks I say!

Anyway. It's been quite some time stock market activity doesn't necessarily reflect the health of the overall economy. A stock market is a market where people go to trade company stocks. It's not unlike, say, Amazon where people go shop for products looking for deals. We're not necessarily too worried about whether the GDP is up or if unemployment is down or that nonfarm payroll is stagnant.

We exist in our own private free-market sphere with our own set of criteria.

Now with that bit of rant out of the way Money News explains three reasons why stock markets and the economy are two different things. 

Obama has pointed to the stock market as proof that his economy is healthy. This is not only misguided but either an outright lie (to the extent he knows this to not be the case) or he's just plain clueless on economics.




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