How resilient is the American economy?

Question

Over the last 10 years, (Sept 1, 1998 to May 30, 2008), the Dow Jones average went from 7795 to 12649.

That's an average gain of 5%/year (better than a CD)

And the Nasdaq went from 1639 to 2522.

Which is still a gain of 4.4%/year.

Despite:

The internet bubble bursting (and the nasdaq losing 3/4 of its value between March 2000 and October 2002)

September 11, 2001

Eight years of The Bush Administration

Gulf War II

The current 'economic crisis'

Answer 1

Yes, Jeff, it's all hype and all of those disasters were orchestrated by all of the 'first families' who want us to think it's the Jews or the other 'secret' groups and psyche us out while they role around in OUR hard earned cash. Our economy is only suffering for the fools on the bottom who are building it. It's no accident that the pyramid is on the US dollar. Pyramid's don't symbolize freedom and no Jew would pick that symbol since it is one that symbolized our former captivity.

Answer 2

they will even survive the Death of God.

Answer 3

The Dow Jones should outperform a freaking CD.  Ever hear of the more risk you have the more reward you get? Recall the equation A=L+OE, Liabilities are before Owner Equity because creditors are due their payments before stock holders.  Thus, bonds are of less risk than stocks.  Stocks, historically, offer around a 7-8% returns with a quite large standard deviation.  I think bonds offer around 4-5%.I think the stock market stems from a loss of 32% to a gain of 48%.  

The economic crisis stems from inaduete demand and lower output.  The stock market isn't a tell all indicator of the economy.  I think the real interest rate is a much better indicator than the stock market because for an economy to grow you need low interest rates to stimulate investment.   The economy has a whole is comprised of land, labor, capital and entreprenurship and if one of these falls, the quantity produced falls dramatically.

Answer 4

Ha Ha , How resiliant is the economy under Bush?

dow

Jan 19 2001 dow 10,790

Today                     12,638

S&P

Jan 19 2001 1,354

Tosay            1,438

The bad news is, we are not done yet.  He could be the first president since hoover to have a net decline!!!