Friday, October 16, 2015

Volatile Stock Markets


Well, Wednesday the Dow was down 149 points. Thursday it is up about 210 points. That’s volatility, folks. In spades!

And the sub-headline on the internet is that stock traders are betting on a delay in raising interest rates by the Fed. Well, tut tut!

I’ve said in this space many times before the Fed ought not raise interest rates unless and until they are fighting an overheated economy with indicators such as inflation, runaway salaries and wages, and such as that.

No way are those indicative of current conditions. Salaries and wages are stuck in neutral. Most households earn less today than they did 12 years ago when ‘inflation’ is calculated in. Also Social Security benefits have been frozen even while Medicare premiums are staged for a major increase. For senior citizens cost of living is directly tied to cost of medical care. Period.  So if SS benefits aren’t rising, then interest rates don’t need a push, either.

Same with asset values, mainly real estate. Homes and commercial properties weathered a severe drop in value for several years. They are now improving, but not across the board. Even then the improvement is not major. A lot of  'lost ground' needs to be made up first.

The political chat these days centers much on economics. Funny thing – actually tragic thing – is that most people don’t have any idea what economics are and how they work. They simply don’t. I think it would be a great idea if all TV stations ran documentary quality TV programs on the basics of Economics 101 and 102. The mystery would be deposed instantly. And finally public policy issues would be easier to conjure and decide.

I heard an interview over NPR Thursday morning. The ‘expert’ claims that republicans have been effective in stalling the government from spending and wasting public funds. He estimated that over $2 trillion had been ‘saved’ during their reign of terror.

Actually, I’d like to understand how he arrived at the $2 trillion figure. I doubt it is that high. But then I also count public funds as investments in how well the country works and functions. During this time of congressional impasse our nation stands witness to ineffective education systems (the public working skills don’t match what the employers say they need and want), the infrastructure crumbles and takes more lives with it as it does so. Furthermore, failing infrastructure is an obstacle to company operations and improved standards of living.

We take much for granted in America. And we and we are too quick to criticize the very things we do not understand. Speaking in public, writing in public, etc., does not require any of us to have credentials to do so. More’s the shame of it.

America is a very intelligent nation and society that seems to have a cruel knack for demonstrating massive stupidity. It causes me great concern over and over again.

For all intents we don’t need to do anything to lose our nation to a foreign enemy. All they have to do is wait until the dumbest among us wakes up to turn out the lights. Then they will surely walk right in and do what they want with us all.

The ‘left behind’ phenomenon is about to begin folks. Won’t you please nudge your fellow neighbor and family member and ask them to smarten up?

Thank you. Thank you very much!

October 16, 2015


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