With Obama's plan to buy close to one billion dollars in bad bank assets, Dow jumped up for almost 500 points. Now we have seen many jumps in Dow lately and I'm wondering if this shows that we have cleared yet another hurdle and are on our way to the finish line (read: recovery)..., or if we have merely stumbled into the center of this tornado (read: eye of the storm) and are about to see a lot worse. There have been signs of people regaining confidence (as this Dow jump also indicates) and, after all, consumers need confidence so that this "self-fulfilling prophecy" of economic recovery might come true. So what do y'all think? Are we rapidly healing or just about to step of the cliff?Is the glass half full or half empty?
2 comments:
We definitely need this spark of confidence. people are getting paranoid about playing the stock market which is probably one of the reasons why it is going down and when people see this rise in DOW, im sure it will start bringing some profits. now the question is when is the day we can stop being paranoid?
I agree. In class we discussed fear among Americans as one of the top causes of the recession. It is because of the fear people have that banks are afraid to give loans, people are afraid to invest or buy anything and less money is circulated in the economy. With a confidence boost, in which Obama is attempting to give to our country, hopefully Americans will become less and less fearful and more and more willing to actually spend thier money and not stash it away under their mattress. The less fear their is, the better the economy. That is what I say to myself everytime I go shopping that I'm stimulating the economy!
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