You say you don't think the president has much control over the economy.......well, that's just plain BS. The markets, industry, and consumers are either roiling or in stasis because Bush is threatening war and seemingly, is oblivious to what's going on with the economy. O'Neill is becoming a consistent subject of ridicule who seems unclear as to what is his job description.
In the meantime, Bush is proposing spending money we don't have. He's suggesting more tax cuts when we are already running deficits. He's making commitments to countries like Afghanistan that he can't keep.....already the complaints about the lack of promised aid are starting to get very loud. I can't imagine what his budget will look like next year.
Adding to the misery, office vacancies, which just 6 mos ago were not expected to get above 12% in this recession, are on their way to 20%. You can't give industrial space away. The markets are at 4 year lows and falling....and don't give me your bubble crap; that was in the Nasdaq, not the DOW. After two years of haircuts, the truth is the valuations of many companies are back in line and their stock should be attractive to investors, but the future is so uncertain, no one wants to risk holding equities. Bond yields are at their lowest levels in 40 years......increasingly, there is fear of deflation. The list goes on and on. The economy is in a spiral that is gaining momentum and what was supposed to be a mild recession is increasingly looking like one that will be severe.
And that is due in no small part to the current presidency. If nothing else, and there is plenty else where he has impact, the president sets the mood of the country and in turn, the economy. However, with this presidency, we have an approach that appears fractured at best with no coherent plan. Ninety per cent of the focus is on war, and little else. This AM, a Rep. strategist on CNBC said defense is what most people want from the president.......wrong again. Defense is important but who cares if you don't have the money to eat. ITS THE ECONOMY STUPID! You've think the Reps. would get it but still they suck their collective thumbs......
If that weren't enough, the attitude and arrogance of this administration is alienating our closest allies.........and because of our size and its impact on the world, their people, in turn, become worried and unsure of the future and in turn, cut back on spending. They are less inclined to buy American stocks and assets, or pay extra for imported American goods.
Clearly, this down home behavior is getting old. It may have worked in TX but now Bush is with the big boys.....and they think he's.......well, you know what they think, and he's proving them very right. You may think people are behind the presidency.....in an effort to look patriotic, some continue to wave the flag and hope for the best. But for others, its like the leader who farts in public.....they want to be kind but its getting embarrassing. So save your argument that the president has no effect on the economy for your church choir........the rest of us know the truth.
EDIT. As I type this post, CNBC is talking about Gore's speech and how Gore has picked up on something.....a small but intense and growing anti-war movement. Its started.......FINALLY!!
____________________________________________________________
Dow, Nasdaq Hit Multi-Year Lows
By Chelsea Emery
Reuters
NEW YORK (Sept. 24) - Talk of a possible war with Iraq, dim profit forecasts and disappointment that the Federal Reserve left interest rates unchanged sent stocks reeling on Tuesday, driving the blue-chip Dow average to its lowest close in four years.
''There hasn't been a whole lot of good news,'' said Philip Dow, director of equity strategy at RBC Dain Rauscher. ''After 2 1/2 years of everything you buy going down, people are having second thoughts about getting invested for the future.''
The central bank left rates at current 40-year lows after last year's string of 11 rate cuts. The Fed also warned the world's richest economy was at risk of further weakness, particularly amid ''heightened geopolitical'' tensions.
Worries about the cost and duration of an attack on Iraq were fanned after British Prime Minister Tony Blair said Iraq had the means to launch a weapon of mass destruction at 45 minutes' notice.
Adding to the market's woes, companies, including Maytag Corp., the No. 3 U.S. appliance maker, and forest products giant Weyerhaeuser Co. became the latest industry leaders to warn profits would miss forecasts.
''We are in a very strong bear market. Of course there will be a bottom, but that level may be a lot lower than we thought,'' said Rick Meckler, president of investment firm LibertyView, which oversees about $1 billion.
The Dow Jones industrial average slumped 189.02 points, or 2.4 percent, to 7,683.13, according to the latest data. It was the lowest close since Oct. 1, 1998, when the Dow average ended at 7,632.53.
The broader Standard & Poor's 500 Index was down 14.43 points, or 1.73 percent, at 819.27 and the technology-laced Nasdaq Composite Index was down 2.79 points, or 0.24 percent, at 1,182.14.
On Monday, the Nasdaq closed below 1,200 for the first time since September 1996.
Market breadth was negative, with about 11 stocks falling for every 5 that gained on the New York Stock Exchange and about 7 stocks dropping for every 4 that advanced on the Nasdaq.
Trading volume was active, with 1.7 billion shares traded on the NYSE and 1.66 billion traded on Nasdaq.
The central bank's Federal Open Market Committee said it would maintain its federal funds rate charged on overnight loans between banks at 1.75 percent. The decision disappointed some investors, who had hoped the Fed might cut rates to underpin the economy.
''Some people were talking about the possibility of a rate cut and some are disappointed,'' said Jack Caffrey, equity strategist for JP Morgan Private Bank, which oversees $280 billion. ''But continuing slow growth in the economy, concerns about earnings for next year, and how comfortable we are with those earnings are still the big issues for investors.''
Maytag tumbled $1.22, or 5 percent, to $23.10 after becoming the latest maker of big-ticket household items to warn profits will miss expectations as the economy has waned.
Weyerhaeuser Co. lost $5.94, or 12 percent, to $43.79 after the company said third-quarter profits would fall well short of forecasts, hurt by low wood prices and duties on imports of Canadian softwood lumber. The company has a large presence in Canada.
Electronic Data Systems Corp. sank $4.84, or 29 percent, to $11.68 and ranked as the second-largest percentage loser on the Big Board after Merrill Lynch cut its investment rating on the computer services company to ''sell'' from ''neutral.'' EDS lost more than half its value last week after warning profits would miss forecasts.
Office equipment maker Xerox Corp. fell 71 cents, or 11 percent, to $5.96 after the company said the U.S. attorney's office in Bridgeport, Connecticut, is investigating its past accounting practices. Xerox had paid $10 million to the Securities and Exchange Commission five months ago to settle charges it manipulated its financial results.
El Paso Corp. sank $2.21, or 29 percent, to $5.30, making it the biggest percentage loser on the NYSE, after JP Morgan and Goldman Sachs cut their investment rating on the energy company to ''market performer'' and ''market perform,'' respectively, after a regulatory ruling that the largest U.S. natural gas pipeline had withheld supply in California.
The market got a fleeting boost in the morning from a report showing consumer confidence fell less than expected in September. But the spot of bright news did not dispel deep-seated concerns over the economy and war that have driven the market to four straight weeks of declines.
The Conference Board, a private business research group said its index of consumer attitudes fell to 93.3 in September -- its lowest since November 2001 -- from a revised 94.5 in August. Still, the drop was less than analysts' forecasts for the index to fall to 92.3. The index is down 17 points from a recent peak of 110.7 in March.
16:47 09-24-02
Copyright 2002 Reuters Limited. |
