Re: Adam's Take

A few days ago I posted an email my friend Adam sent me bragging about the Bush administration's effect on the DOW Jones which had just topped 14000 for the first time, and on the economy in general. I tried to be fair and asked what impact the president or the government in general could have on the DOW or the economy.

Adam's funny email here.

I didn't get much of a response. But the Dow took a big tumble today on news that mortgage borrowing has taken fallen. Bottom line? The market is volatile and I still need to learn more about it.

DOW drops more than 300 points.

Adam's take

My friend, and consummate conservative, Adam Chmelecki sent me an email a few days back. I just got to it though, pretty funny stuff. Seems that he was jacked up about the Dow hitting 14,000, and about the success our mutual friends were enjoying in the "robust" economy, including his restaurant supply company, Sound Restaurant Supply.

I might as well bring to your attention the fact the yesterday the stock market hit an all time record high. The media wont report on this all that much because of fear that people will credit old G Dubs for turning the economy around and doubling the dow from its low of 700 hundred after 9/11. Everybody screamed that he was protecting the rich with his tax cuts well guess what the rich spend money and now everybody has a higher standard of living. people are eating out and Sound Restaurant supply is there to SUPPLY the Restaurants. Things are so good they even have eric managing projects.....the kid could hardly manage his Madden Franchise now they got him heading up several ventures....Things are so good right now somebody had the nerve to give doug a secretary, (coincidentally there is a new case study for passive aggressive sexual harassment at Mercy College)....so much money is being made the Bomber made a diplomatic trip to london to try and spread some of that fine Meehan Oil to the Brits.....the stock market is looking so good Yoshi got his assembly line hours extended at the Hello Kitty factory in Nagasaki. Republicans Good For The Economy. (Just Playin Yosh, you my man what up)

Well, Adam's email is hilarious, but I know that the president doesn't have much to do with the stock market, and that the stock market is not equal to the strength of our economy (see: deficit, strength of the dollar, consumer confidence, etc.). But the point still stands: the stock market is riding high. Of course it was riding high in the Clinton years, too-- it's a cyclical thing I guess.

What I'm asking is for someone who knows more about this than I (not hard) to explain the cycle of the stock market and its effect on the economy. Comment here or email me.