Today's front page story on the WSJ is "Stock Market Hits 5-Month High." For years now the Dow and other major indexes have gone up and down. First getting over that 10,000 point market then for short time in the 14,000 range. The recent global recession saw it fall to the 7,000 point range in 2009 and come back to over 12,000 now. The question is why?
On Friday, the market went up on a pathetic piece of news that Congress passed a two-month stay on the Social Security payroll tax. Equity investors are looking for any news.
-- Unemployment not up as high as anticipated
-- New housing starts not as negative as thought
-- American consumer spending up from all-time lows
-- European central bankers agreeing to massive loans
-- Obama Administration's massive Keynesian spending and unimaginable debts buy us a few years.
If Congress would create positive economic conditions with lower taxes, fewer entitlements and decrease the scope government, this economy would soar.
The Democrats benefit from tough times because the poorer people become the more likely they will vote for entitlement and spending programs -- Democrat policies.
As the masses become more equal in a poorer direction, the few at the top become richer. This is the history of the socialism.