Breaking News: Economy grows at best pace in 2 years, signaling end of recession

GladiatoRowdy · Nov 24, 2009

TSchmal said:

I begun doubting the economy's recovery when I saw the DJI's graph against a graph representing the value of the US dollar. They're basically inverses of each other. This leads me to believe the stock market is improving because the dollar is depreciating. It seems when the dollar gains, the stock market dives. That bothers me. A lot.

I'm not a finance expert at all (in fact, I know hardly anything), but it just gives me this feeling of false hope.
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Many of the indexes (DOW, NASDAQ) are dominated by multinational corporations that make significant amounts of money overseas. When the dollar goes down, the remittances from the overseas subsidiaries are worth more in dollars, enhancing the expected cash flows and stock prices of these firms. Note that the article mentioned another index, the Russell 2000, which is only at its 50 day moving average, this index measures much smaller companies that rely more on business in the US, so their cash flows will be denominated entirely in dollars, making for a weaker outlook.

Gotta love the Global MBA program!

adoo · Nov 24, 2009

TSchmal said:

I begun doubting the economy's recovery when I saw the DJI's graph against a graph representing the value of the US dollar. They're basically inverses of each other. This leads me to believe the stock market is improving because the dollar is depreciating. It seems when the dollar gains, the stock market dives.
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i suggest you expand you sample to include the Clinton years.

in Clinton's 8 years, the stock market rose from sub-4000 to almost 12,000. in the same period, during which when a huge budget deficit was turned into to a surplus, the USD rose against every currency except the RMB

parmesh · Nov 24, 2009

ItsMyFault said:

http://www.msnbc.msn.com/id/33529806/ns/business-stocks_and_economy/
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Hah, what a piece of crap. If you believe this, that's just sad.

Cohete Rojo · Nov 24, 2009

Rocket Guy said:

shot in the dark question here. what would raising the minimum working age do to unemployment. Make the minimum age 18 years old instead of 16.

For example, I manage a putt-putt golf place, and there are plenty of kids that work just because they are bored and want something to do. There parents are loaded and only use the money at the mall and whatnot. I think kids should not be able to work if there parents make a certain amount of money. I know at my company there would be about 35 jobs out of a staff of 75 available to people who actually need the money.

Any thoughts?
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Sieg Hail!

bingsha10 · Nov 24, 2009

adoo said:

i suggest you expand you sample to include the Clinton years.

in Clinton's 8 years, the stock market rose from sub-4000 to almost 12,000. in the same period, during which when a huge budget deficit was turned into to a surplus, the USD rose against every currency except the RMB
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the stock market isn't something that you observe like nature. It is very capable of being manipulated.

the government has been printing money for the past year non stop and giving it to banks to play the stock market. What is happening should surprise no one.

hjg877 · Nov 24, 2009

I think we can all agree Detroit's ****ed. America just shouldn't be in the automotive industry, if a global economy is inevitable.

garthomps · Nov 25, 2009

Growth rate exaggerated by Obama's Govt

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Breaking News: Economy grows at best pace in 2 years, signaling end of recession

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