|
|
Stocks show surprising
strength -- but why?
|
by Mr. Chuckles, Unknown News
April 23, 2007
|
Recently stock markets have climbed, forcing some permabears -- like me -- to "have another think". What are the key drivers now?
1) Serious attempts by the Feds and corporados to corral the subprime mortgage debacle.
2) Stocks are climbing as the dollar is falling, partly because prices are relative to value, partly because people may be seeing stocks as having more long-term value than Ameribucks, and partly because foreign earnings of mega-cap corporados are increasingly valuable.
3) The Bush Regime has abnegated responsibility for
enforcing anti-trust law, leading to a deluge of "private equity" buyouts using money from all over the planet. Anyone who wants to establish a monopoly must complete the transactions prior to January 2009. As just one example, SBC's buyout of AT&T was unopposed, and now SBC changed their name to AT&T, thus finishing the Baby Bell breakup.
4) Pretty much all other regulation has been abandoned by the Bush Regime, including enforcement of pollution and other environmental laws. Health, safety, you name it -- there is no "controlling legal authority" in the U.S. for corporations.
A friend of mine is in the hospital, busily but unfortunately helping to generate in excess of $1 million in revenues for the health industry. He is, in effect, their captive, and as much money as can be spent will be spent. Say a prayer for "Bill" if you pray -- he is having some rough times! And I am spending $3.30 a gallon visiting him every other day. Don't tell me inflation is only 3%...
Later...
© by the author.
We're usually unable to forward readers'
emails, but both readers and authors are
invited to visit our 'dialogue' page
for two-way communication: |
|
This is an archived Unknown News page. For newest material, visit our main page.
|
|
|
|
|
Stocks are climbing as the dollar is falling, partly because prices are relative to value, partly because people may be seeing stocks as having more long-term value than Ameribucks, and partly because foreign earnings of mega-cap corporados are increasingly valuable.
|
|
|
|
